Apple is strategically aligning itself with China while simultaneously expanding its manufacturing footprint in Southeast Asia and India, showcasing the intricate balance it’s navigating between politics and business.
According to a Nikkei Asia’s analysis of Apple’s latest supplier list, the tech giant bolstered its relationships with Chinese-based suppliers and manufacturing facilities in 2023, while reducing its reliance on suppliers from Taiwan, the U.S., Japan, and South Korea.
The analysis, based on Apple’s official list of suppliers for fiscal 2023, which covers 98% of the company’s procurement, reveals a notable increase in the number of Chinese suppliers, reaching 52 last year, up from 48 in 2022. Moreover, the count of manufacturing or development facilities in China surged by 10 to 286.
Apple’s deepening engagement with China coincides with its ongoing supply chain shift to Southeast Asia, especially amidst the backdrop of the U.S.-China tech tensions.
In Southeast Asia, particularly Vietnam, the number of Apple suppliers experienced a significant upsurge, with Vietnam witnessing a 40% increase to 35 suppliers, while Thailand saw a third increase to 24 suppliers.
India, with 14 suppliers, also remains on Apple’s radar, with Tata Group joining the list of top suppliers for the first time.
Despite the expansion in Southeast Asia and India, Apple’s reliance on China persists. Approximately 37% of the 35 suppliers in Vietnam have roots in China and Hong Kong, including key players like Luxshare and Goertek, indicating China’s significant role in Apple’s supply chain strategy.
Moreover, several Chinese suppliers, such as San’an Optoelectronics and Baoji Titanium Industry, emerged as top Apple suppliers for the first time in 2023.
While Apple’s approach contrasts with that of some American counterparts, like Dell and HP, who are reducing their China ties, Apple CEO Tim Cook continues to foster relations with Chinese officials and suppliers.
