Why Apple is Manufacturing Products in China? Read to Know More!
June 17th, 2021
Are you wondering why Apple Manufacturing in China?
Why has entered China for the production of its products?
What kind of Apple products does China make and which companies make it?
Apple is considered a sign of luxury and due to that its products have a huge demand. To meet this demand, Apple started to open factories in other countries. China is so far the largest producer of Apple products in the world.
Apple entered China for a variety of reasons. The main reason was that China can produce almost 500,000 iPhones in a single day.
Other than that, China has low labor costs and that increases the profits of Apple.
If you want to learn about what kinds of products does China produces for Apple, then this guide is for you.
It contains all information about where China gets the parts and how it assembles those parts.
Chapter 1: Apple Manufacturing in China: Facts and Figures
Why is Apple using China as its source for iPhones and iPads? Well, in this chapter, we will try to explain in detail why Apple is doing so. These facts and figures will help in understanding what is going on.
1. 46% of Apple’s suppliers are Chinese
The first reason why Apple is making iPhones in China is can be considered as a win-win situation for both Apple as well as China.
See, the thing is that about 46 percent of Apple suppliers are Chinese manufacturers and firms. That means that over 360 suppliers from China are working for apple, creating every component required for building the iPhone/iPad.
Talking about the advantages from the Chinese firm’s side, they rely on big orders from Apple. This makes their profits margins to the top.
As for Apple, it can take the advantage of low wages and high-efficiency rates as Chinese workers have the capability of offering those.
In short, Apple and China are both making huge profits because of this.
2. Almost every Apple product’s part is manufactured by Chinese companies
As mentioned above, there are almost 360 manufacturers working for Apple. These companies make almost every component required for Apple products.
Take a look at this that two cities nearby Chinese Delta rivers (Pearl River Delta and the Yangtze River Delta) have the most Apple suppliers that make components such as LCD screens, mics, sensors, cameras, RF readers, and every other component.
Actually, the Chinese have the resources and knowledge to create these components at a very low price and high efficiency.
This makes China a perfect place for Apple to develop its products. There is another advantage to that and we will discuss that later in the upcoming chapters.
3. Designed by Apple but Assembled in China
Whenever you get your new iPhone, you think that it is made in California. Well, if you look closely, it is written as “Designed by Apple in California, Assembled in China”.
Yes, that is true. Apple does not make any iPhone in California. China is the one where all iPhones are assembled and boxed packed.
As we said, China is the largest supplier of Apple iPhone components and it makes it feasible for Apple to also assemble its iPhone in China.
4. Is China the best fit for Apple?
Apple is considered as the symbol of luxury and that is why it has a huge demand all over the world. To meet the demand, Apple needs a workforce that can create thousands of iPhones in a matter of days.
And that is where Apple China comes in. Other than that, China has the skill set that is required to make complex components of the iPhone and other Apple products.
Similarly, China offers Apple a flexible environment and Apple uses that to test and develop new products.
These are some of the reasons why China is the best fit for Apple and how Apple is changing the way through the help of China.
Chapter 2: Why Apple is manufacturing products in China
Why Apple is manufacturing products in China? Apple has the option to select countries such as India or Bangladesh. But why China is the only one that has this advantage? Well, here is why.
1. China can meet Apple’s demand for its products
China has the power to meet the demand for Apple products and that can be defined in a number of ways. For instance, firstly, China has the skillset to develop new products for Apple.
The Chinese Engineers help in R&D demand for Apple’s new products. Secondly, it offers flexible timelines for completing an order.
As an example, last year, Apple iPhone 12 sales went beyond expectations. That was all because China helped Apple in making the iPhone 12 models at a very large scale. And that is how Apple China is meeting the demand.
2. The cost of producing Apple products in China is low
Moving towards the second reason, the cost of producing apple products is low in China. There are two reasons for the low-cost factor.
The first one is that in China, the average working wage is relatively lower than in USA. Due to this, the Chinese firms are able to produce Apple products in lower cost and give more profit margins to Apple.
3. Most of the Apple’s parts are made in China so assembling becomes low cost
Almost 90 percent of the components are made by Chinese manufacturers. It is costly to move those components somewhere else and then assemble them.
To prevent this, Apple is linked with Chinese iPhone assemblers that assemble and package the iPhones.
So, the making of components and assembling those components is straightway done in China (That is why you see “Assembled in China” at the back of the phone).
4. Apple can target Asian/Gulf markets easily while operating from China
Another reason why Apple is manufacturing in China is the targeted audience. See, Apple is popular all over the world that includes regions such as UAE and Asia.
It is expensive to ship iPhones from the USA to these areas. So, with the help of China, Apple can lower that cost and can deliver phones to the vendors working in Asia and gulf countries.
Apple is already targeting Europe and with the help of China, it is also able to sell its products in Asia and the gulf areas.
5. The Massive Human Resource that China has
The reason China is going with Apple products is that it has the resources that help Apple in meeting the demand. And by resources, we mean the workforce.
Actually, the thing is Chinese are considered hardworking people and that is true. Apple is taking the advantage of that because China has the capability of producing almost 100,000 iPhones every year.
6. China is also the biggest Apple Products market
Lastly, China is the biggest Apple market. As every part is manufactured here, you can literally find every Apple product here.
Yes, mainly China handles the production of iPhones and new Airpods, people can also get their hands on items such as iMacs, iPods, iPads, and other related products at an optimum price.
However, there is a misconception that Apple products in China are cheap, compared to the rest of the world. Well, these prices are similar or differ a little bit to those you get in countries like the USA, UK, and Europe.
Chapter 3: List of Apple Manufacturers in China
Now, let’s move towards the section that contains some of the key vendors of Apple that provide the components required for making the Apple products such as iPhones and iPads. This information is only provided to give you an idea of how Apple is working in China.
No. 2, Donghuan 2nd Road, Longhua District, Shenzhen 518109, China
1. Foxconn – Apple’s Largest Contract Assembler and Manufacturer
Foxconn is a contract manufacturer of Apple based in Taiwan. The company is famous for producing Iphones for the US-technology giant Apple. It is headquartered in Taipei, Taiwan.
They are have a giant Foxconn factory in Shenzhen, China. Foxconn brought revenues of around $175bn in 2018 and it was ranked 24t among the fortune 500 companies.
Foxconn manufacturers around 60-70% of the Iphones sold each year and Apple is by far Foxconn’s largest customer. Foxconn also developed some equipment for Iphone in order to increase their profit margins.
For example, they developed their own chemicals for polishing the Iphones screen rather than relying on chemicals from a Japanese company.
2. Bosch Sensortec, China is making an accelerometer sensor for iPhone
The first official vendor that is working for Apple is Bosch Sensortec. Bosch is a worldwide operating company based in Germany that provides components such as barometer, pressure, and humidity sensors.
The company’s Chinese firm is related to Apple and makes accelerometer sensors for Apple iPhones. Similarly, it also makes accelerometer modules for Apple iPad devices.
For contact, use these details
Arrow Electronics (Bosch China distributor)
Address: 2/F and 3/F, Green 18, Phase 2, Hong Kong Science Park, Pak Shek Kok, NT, Hong Kong, China
3. Cirrus Logic is making audio chips for Apple
If you are wondering where Apple does get the audio chips for the iPhones and iPad, then Cirrus Logic is the answer for you.
Cirrus Logic is a US-based technology company that makes audio components for various companies. They have factories in China that are producing audio chips for Apple.
Apart from Audio Chips, Cirrus Logic also makes the haptic feedback sensor for the iPhone series.
For contact information, look at this
Cirrus Logic International (UK) Ltd.Asia Pacific Headquarters
Address: 4/F, Lee Gardens 31 Sunning RoadCauseway Bay, Hong Kong, China
4. Sunwoda Electronic makes battery for Apple
The reason you get good battery timing on the iPhones is that the batteries are made by Sunwoda Electronics. Sunwoda is a maker of lithium-ion batteries that makes batteries for cars as well as phones.
This Shenzhen city-based company is a key vendor of iPhone and is working with Apple for many years.
To get in contact with Sunwoda, use these details
Shilong Tsai Industrial Park (Sunwoda Corporation)
5. Qualcomm makes camera sensor for iPhone and iPad
We all know that what Qualcomm is and how it is changing the world of electronics. Qualcomm is a provider of processors for phones and laptops.
Qualcomm China uses its resources to make camera modules for iPhones. These modules include the camera algorithm, chassis, lens, and focus sensor for the iPhone.
Qualcomm China branch
Address: 690 Bi Bo Road, 1, 2&4F, Unit 9 Zhangjiang High-Tech Park, Shanghai 201203, Peoples Republic of China
6. AKM Semiconductor makes compass for Apple’s products
Asahi Kasei Microdevices (AKM) is a Japan-based company that makes a variety of devices for a number of companies.
These devices include communication ICs, audio chips, current sensors, and compass modules. AKM, China makes compass sensors for all iPhones and it is doing that since the launch of the iPhone 6
If you want to get in contact with the AKM distributor, use this information
Willas-Array Electronics (Hong Kong) Limited
Address: 24/F, Wyler Centre, Phase 2, 200 Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong
7. TSMC China makes LCD and glass screens for Apple
Like Qualcomm, TSMC is another important partner of Apple that is working from China. TSMC is a Taiwan-based company that makes LCD/AMOLED screens for Apple as well as Samsung.
The Chinese branch of the company provides screens for Apple iPhones and iPads. Moreover, the company also makes the glass that is required for screens for Apple.
For contact with TSMC China, here are the details
TSMC China business
Address: 4000 Wen Xiang Road, Songjiang, Shanghai, China
8. Other companies working in China for Apple
The above-mentioned companies are some of the important organizations that make it possible for Apple to make the iPhones and other products.
However, there are some other companies that also play an important role in the Apple business in China. For instance
Corning makes glass protection system for Apple
STMicroelectronics China makes gyro sensor
Broadcom makes a touch-screen controller for Apple
Murata China makes Wifi chips for iPhones/iPads
Chapter 4: Does China Manufactures or Assembles Apple’s Products
There are two terms that are required to be understood- Assembling and manufacturing. In this chapter, we are going to discuss and whether China is a manufacturer of Apple products or an assembler. Let move forward.
Address: No.2, Zihyou St., Tucheng Dist., New Taipei City 236, Taiwan
1. Assembling vs. Manufacturing: What is the difference
Before talking about assembling, let’s talk about the manufacturing term. Manufacturing means that a company makes the product from scratch using raw materials.
In this process, the company designs the product, gathers the raw material, and then produces the item. Manufacturing is an expensive process when compared to assembling. And it takes a lot of time in the manufacturing process.
Talking about assembling, let’s take an example, suppose you are the assembler of a shoe company. You take the laces from another company, sole from another one; hire a firm that designs the logo and design of the shoe.
Then, you take all these parts and then join them together. Assembling is a cheap process when compared to manufacturing because there is no need to buy machines and spend money on designing the product.
This is the main difference between manufacturing and assembling. Let’s talk about what role does China plays here for Apple.
2. Is China Manufacturing Products for Apple or just assembling them?
There are two ways to look at this topic. First, many components for Apple are manufactured by Chinese firms. We have mentioned that above.
Yes, these Chinese firms are the manufacturer as well as some of them as the assembler of Apple products.
For the assembly part, there are companies that do that work specifically and the amazing part is they are also Chinese-based companies.
In simple words, you can say that China is a manufacturer and the assembler of Apple. Some companies are just the manufacturer and some are just the assembler. Some may even do both like Foxconn.
3. Foxconn- The First Assembler of Apple in China
Foxconn or also known as Hon Hai Precision Industry Co. Ltd is the longest partner of Apple that is giving its services in assembling Apple devices as well as producing some.
Foxconn is a Taiwanese-based company that designs and produces electronic components such as PCBs, computer chips. It is headquartered in New Taipei City, Taiwan, China. Foxconn also has its assembling facility in China.
Apple is linked with Foxconn China and for Apple, Foxconn is assembling the Apple products. Foxconn holds the assembly of the majority of Apple products because it is the first partner of Apple in China.
4. Pegatron- Second Assembler of Apple
Pegatron is another Taiwan (China) based company that makes computing and consumer electronics for vendors. It also designs and manufactures computer peripherals.
The mainland China facility of Pegatron uses its resources for making Apple products. The company has new ties with Apple. However, it is playing an important role in assembling Apple products.
Chapter 5: What Products do Chinese Firms Assemble for Apple?
Products it assembles
There are currently 4 Taiwan (China) based companies that are assembling products for Apple. All of these companies have an assembling facility in China and are using that to minimize the assembling costs and delays.
1. Products that Foxconn Assembles
The company currently assembles the majority of iPhones, Ipads and MacBooks in its Shenzhen assembly plant. Foxconn also operates in countries like Thailand, South Korea, Czech Republic.
However, it uses the Chinese facility because it can easily get components from other Chinese Apple vendors for the iPhone.
Similarly, Foxconn also assembles iPads for Apple. It has worked on iPads series such as iPad generation 3, 4, 5, and 6. Currently, it is also assembling the latest iPad.
Pegatron is the second assembler of Apple that uses its resources to assemble iPhones. Pegatron has a new partnership with Apple. At the launch of the iPhone 6, Pegatron assembled almost 30% of the phones to meet the demand.
Goertek is a Chinese-based audio equipment company that makes drivers, audio mics, speakers, and sound algorithms for a variety of companies.
Goertek uses its HQ (Head Quarter) facility to assemble Apple Air pods. The newest Apple headphones (Air Pods Max) are assembled with the resources and knowledge of Goertek.
Like Goertek, Luxshare is another Chinese company that assembles consumer electronics, telecom equipment, and audio parts for automobiles. Luxshare is a key assembler of Apple Air Pods and it has assembled both Air Pods 1 and 2 for Apple.
Chapter 6: Faqsabout Apple Products Manufactured in China
1. Does Apple make products in China?
Apple does not have own factory and make products in China. It has given a contract to multiple Chinese companies that make and produce Apple products.
In China, some of the vendors manufacture components for Apple and some of the companies assemble those components to make iPhones and iPads.
2. What year did apple started manufacturing in China?
Apple entered China in 2001 and due to the high demand, Apple partnered with Foxconn and China to assemble the iPhones and iPads in the production facility of Foxconn in Zhengzhou. Later the production and assembling shifted to Shenzhen facility of Foxconn.
3. Are Apple products cheaper in China compared to USA?
There is a misconception that China is the center of Apple so the products here are cheaper than the rest of the world. Well, that is not true. In fact, Apple products in China are a little bit expensive when compared to the rest of the world.
4. How many Apple factories are in China?
There are no Apple-owned factories in China. However, we can say that Foxconn and Pegatron and others are the companies in China that is making the product and assembling it as well. Plus, Apple is using the help of various Chinese companies to make its components.
5. Has Apple stopped manufacturing in China?
Till now, Apple has not stopped the manufacturing of its products in China. However, it is planning to move its assembling factories to India and Vietnam because of low assembling costs. This is also due to the trade war during Donald Trump presidency between China and USA.
Apple has gained a lot of attention due to the fact that it is considered a sign of luxury. Apple products have a huge demand and there is no way to meet this demand unless there is a huge workforce present with Apple. That is where China comes in.
We hope that this blog has provided you all the information of what kind of products are being made in China for Apple company and which companies and Manufacturing it and which are Assembling it.
We also talked about the reasons why China became a favorite place to Apple to product and assemble its products.
If you need any products to import from China, feel free to contact us and our Sourcing Specialist will take care of all your needs.