Apple dependent on China for iPhone manufacturing
Apple is totally depended on China for its manufacturing of the iPhones. It is mainly due to Tim Cook’s decision to use China as an assembly hub when he was the company CEO many years ago.
Chinese employees and suppliers have contributed tremendously to the complex work and the sophisticated components for 15 long years since the inception of Apple iPhone. It can be said very easily iPhone which was designed in California and is being manufactured in China is ultimately the creation of both the countries.
The amount of critical work which has been done by China overall reflects the advancement of the country over the past decade and also denote the level of involvement of the Chinese engineers in the development of its marquee device. China had lured the companies all over the world to its factories with low priced workers and their unparalleled production capacity. China’s engineers and suppliers actually moved up the supply chain. They now claim the bigger slice of the money that US companies are spending to create high-tech gadgets.
Tensions between China and Taiwan
China is now having tremendous ownership and has had a good amount of responsibilities for the iPhone manufacturing that Apple is trying to decrease their dependency on the country. This goal has been taken on urgency with the rising geopolitical tensions of China against Taiwan. There is also increasing concern in Washington about China’s ascendancy as a technology competitor.
Apple is looking India as a hub in their manufacturing of the iPhone. But still the Chinese companies who has operations in India are still going to play a crucial role in the same. Foxconn, the Taiwanese supplier is already manufacturing iPhones in factories all across China. They are going to lead Indian worker’s assembly in Chennai, India with support from the nearby Chinese suppliers including Lingyi iTech who has subsidiaries to supply chargers and some other components for iPhones.
China’s BYD will be setting operations to cut glass for displays. US is wanting to diversify and reduce its dependence on China in the manufacturing of iPhone but it is going to be a very tough road ahead for them.