Apple is a multinational technology company with worldwide fame for its innovative products and designs. One of the key components of its success is its manufacturing process, with a significant portion of its products being made in China. The company has a strong relationship with Apple manufacturers in China and has been working in the country for many years.
The manufacturing of Apple products in China is an important aspect of the company’s business strategy. In recent years, China has become a hub for manufacturing due to its skilled labor force, low labor costs, and access to raw materials. According to a report by the New York Times, Apple’s manufacturing partners in China employ over one million workers who work on the production of Apple products. These workers work in factories that are run by companies such as Foxconn, Pegatron, and Wistron.
China’s role in Apple’s manufacturing process is reflected in the company’s financial reports. In 2023, Apple reported that its revenue from China had increased by 57% compared to the previous year. The increase was attributed to the strong demand for Apple’s products in China, which was largely driven by the popularity of the iPhone.
Table of Contents
Chapter 1: Overview of Apple Manufacturer in China: History and Background
Apple is a multinational technology company that designs and sells consumer electronics, computer software, and online services. The credit for a significant proportion of its products goes to Apple manufacturers in China due to the company’s partnership with various manufacturers to produce its devices.
1) Early Beginnings in China
Apple began working with Chinese manufacturers in the 1990s. Initially, the company partnered with Taiwan-based Foxconn, which established a factory in Shenzhen, China. Over time, the relationship between Apple and Foxconn grew stronger, and the latter became the primary manufacturer of Apple products in China.
2) Current Chinese Manufacturing Partners
Today, Apple works with several manufacturers in China to produce its products. Besides Foxconn, the company partners with Pegatron, Wistron, and Luxshare Precision. These manufacturers operate facilities across China and are responsible for producing various Apple devices, including the iPhone, iPad, and MacBook.
3) Labor Force and Working Conditions
Apple Manufacturer employs a vast workforce in China, with some estimates suggesting that the company has over one million employees in the country. The working conditions in these factories have been the subject of much scrutiny, with reports of low wages, long working hours, and poor safety standards.
4) Technology and Innovation
The partnership between Apple and Chinese manufacturers has resulted in significant technological advancements in the manufacturing industry. For instance, the factories employ robotics and automation to increase efficiency and reduce costs. Additionally, Chinese manufacturers have become increasingly adept at producing high-quality products at scale.
5) Impact on the Chinese Economy
The presence of Apple manufacturers in China has had a significant impact on the country’s economy. The company’s operations have created jobs, boosted exports, and contributed to technological innovation in the manufacturing industry. However, there have also been concerns about the negative impact of Apple’s presence, such as the exploitation of workers and the environmental cost of producing electronic devices.
Chapter 2: Why Does Apple Manufactures Products in China?
Apple is one of the world’s most successful companies due to its innovative and luxurious gadgets. However, what many people may not know is that much of Apple’s manufacturing takes place in China. In this article, we will explore why Apple manufactures its products in China and the advantages and disadvantages of this strategy.
1) It’s Cost Effective to Manufacture in China
Apple’s decision to manufacture its products in China is because of a major factor: the cost advantage. China’s labor expenses are significantly lower when we compare these to the labor cost in the United States or Europe. Therefore, this fact presents China as an appealing location for manufacturing. Furthermore, China has a vast reservoir of proficient workers who are willing to work more hours for modest wages. This circumstance is favorable for Apple to produce exceptional quality products at a lower cost and ultimately resulting in greater profit margins.
2) China Offers a Vast Skilled Workforce
China has a large pool of skilled workers who are adept at producing high-quality products at scale. Chinese workers are known for their ability to work quickly and efficiently, which is essential for producing large quantities of products within a short period. Additionally, China has a robust ecosystem of suppliers and subcontractors, which allows Apple to source the components it needs quickly and efficiently.
Moreover, the skills of Chinese workers are not limited to production alone. China is also home to a growing number of engineers and researchers who are working on cutting-edge technologies. This has made China an attractive location for research and development, with Apple establishing several R&D centers in the country.
3) Access to a Large Consumer Market
China is the world’s largest consumer market, with over 1.4 billion people. By manufacturing products in China, Apple can sell its products directly to Chinese consumers without incurring high import tariffs. Additionally, China has a growing middle class with increasing purchasing power, making it an attractive market for Apple’s products.
However, access to the Chinese market also comes with its own set of challenges. China has a unique business environment, which can be difficult for foreign companies to navigate. Additionally, there is intense competition from local Chinese brands, which offer products at lower prices.
For any questions regarding Apple manufacturers in China, you can contact our sourcing representative through a free consultation session.
4) Favorable Regulatory Environment for Foreign Companies
The regulatory environment in China is relatively favorable for foreign companies, with the Chinese government providing various incentives and tax breaks to attract foreign investment. Additionally, the Chinese government has invested heavily in infrastructure and technology, which has helped to create a conducive environment for manufacturing.
However, there are also risks associated with the regulatory environment in China. The government has a significant influence over businesses, and foreign companies have to navigate a complex web of regulations and bureaucracy. Additionally, there is the risk of intellectual property theft, which has been a longstanding concern for foreign companies operating in China.
5) Favorable Political and Social Factors
Finally, there are political and social factors that have influenced Apple’s decision to manufacture products in China. For instance, the Chinese government has made significant investments in education and infrastructure, which has helped to create a skilled workforce and a conducive environment for manufacturing. Additionally, China’s long-term economic growth prospects have made it an attractive location for foreign investment.
Chapter 3: Types of Apple Products Manufactured in China
Here are the main Apple products that are manufactured in China.
1) iPhones
The iPhone is one of Apple’s most popular products, and a significant portion of its manufacturing is done in China. The country is home to some of the world’s largest smartphone manufacturing facilities, making it an attractive location for Apple. The iPhone’s manufacturing process involves several components, such as the screen, battery, processor, and camera, which are all manufactured in China. The assembly of the iPhone is done in factories owned by Foxconn, one of Apple’s major suppliers.
2) iPads
Apple’s iPad is another popular product that is manufactured in China. The manufacturing process for the iPad is similar to that of the iPhone. The device’s components are sourced from different suppliers in China, and the assembly is done in factories owned by Foxconn. Apple has been manufacturing iPads in China since the product’s introduction in 2010.
3) MacBooks
Apple’s MacBook is a high-end laptop that is manufactured in China. The MacBook’s manufacturing process involves sourcing components from various suppliers in China and assembling them in factories owned by Foxconn. The country’s skilled workforce and the availability of high-quality components make it an attractive location for MacBook manufacturing. Apple has been manufacturing MacBooks in China since 2001.
4) AirPods
Apple’s AirPods are a popular wireless earbud product that is also manufactured in China. The product’s components are sourced from suppliers in China, and the assembly is done in factories owned by Foxconn. The AirPods’ popularity has been on the rise since its introduction in 2016, and Apple has increased its manufacturing capacity in China to meet the growing demand.
5) Apple Watches
The Apple Watch is another popular product that is manufactured in China. The product’s manufacturing process involves sourcing components from various suppliers in China and assembling them in factories owned by Quanta Computer, one of Apple’s major suppliers. The watch’s popularity has been on the rise since its introduction in 2015, and Apple has been increasing its manufacturing capacity in China to meet the growing demand.
6) HomePods
Apple’s HomePod is a smart speaker that is also made in China. The product’s components are sourced from suppliers in China, and the assembly is done in factories owned by Foxconn. The HomePod’s manufacturing process involves sourcing high-quality audio components and assembling them in a way that produces the best sound quality possible. Apple has been manufacturing HomePods in China since 2018.
7) iPods
The iPod is a portable music player that has been a popular product for Apple since its introduction in 2001. The manufacturing of iPods is primarily done in China, with assembly carried out by Foxconn. According to a report by the Financial Times, Apple manufactured around 14 million iPods in China in 2018. However, the popularity of the iPod has declined in recent years, and the company discontinued the product in 2017.
8) Apple Pencil
The Apple Pencil is a stylus designed for use with the iPad and iPad Pro. The product is manufactured in China, with assembly carried out by Foxconn. The Apple Pencil has been popular with artists, designers, and note-takers since its introduction in 2015. According to a report by Statista, Apple sold around 10.6 million units of the Apple Pencil in 2020.
9) Apple TV
The Apple TV is a digital media player that allows users to stream video content on their televisions. The product is manufactured in China, with assembly carried out by Foxconn. According to a report by TechCrunch, Apple sold around 14 million units of Apple TV in 2020. The company has been expanding its content offerings on the platform and has also introduced a new Apple TV 4K model.
10) AirTag
The AirTag is a small tracking device designed to help users locate lost items such as keys, backpacks, or luggage. The product is manufactured in China, with assembly carried out by Luxshare, one of Apple’s major suppliers. According to a report by Statista, Apple sold around 1.4 million AirTags in the second quarter of 2021, just a few months after the product’s introduction in April. The AirTag has been praised for its ease of use and accuracy in locating lost items.
Chapter 4: Impact of Apple Manufacturers in China on the Country’s Wholesale Markets
Apple started manufacturing its products in China in 2001. The country is the largest producer of iPhones in the world, with approximately 90% of iPhones being produced in China. Apart from iPhones, China also produces other Apple products like iPads, iPods, and MacBooks. The main reason behind Apple’s decision to manufacture in China is its low labor cost, skilled workforce, and large-scale manufacturing capabilities.
Apple has also made significant investments in its manufacturing operations in China. In 2021, the company announced plans to invest $430 million in a new research and development center in Shenzhen, China. The center will focus on the development of new technologies and will employ over 1,000 engineers.
Apple’s manufacturing operations in China have also had a positive impact on the country’s economy. According to a report by the China Academy of Information and Communications Technology, Apple’s operations in China contributed over $102 billion to the Chinese economy in 2020. The report also found that Apple’s operations in China had created over 4.8 million jobs in the country.
Here is how the wholesale markets have evolved because of Apple manufacturers in China.
1) Improving Quality Standards in the Manufacturing Sector
The presence of Apple manufacturers in China has improved the quality standards of the wholesale markets. Apple is known for its strict quality control procedures, and this has had a ripple effect on other manufacturers in the region, leading to an overall improvement in the quality of goods produced,
Increased Efficiency: The demand for Apple products has driven the need for increased efficiency in the manufacturing process. This has led to the development of new technologies and processes that have improved the efficiency of the manufacturing industry in China.
2) Reducing Cost of Overall Manufacturing due to More Competition
The competition for Apple’s business has driven down the costs of manufacturing in China. This has made it more affordable for other manufacturers to produce goods, which has led to a wider variety of products available for foreign buyers in the China wholesale markets.
3) Greater Access to Technology in the Manufacturing Industry
Apple’s presence in China has provided greater access to technology and resources that were previously unavailable. This has led to an overall improvement in the technological capabilities of the region, which has made it more competitive on a global scale.
4) Increase in Trade Opportunities for Foreign Buyers
The presence of Apple manufacturers in China has attracted foreign buyers, which has led to increased trade opportunities for local manufacturers. This has helped to boost the local economy and create jobs in the region.
5) Enhancing Innovation in the Local Manufacturing Industry
Apple is known for its innovation and product development, and its presence in China has spurred innovation among local manufacturers. According to a report by the World Intellectual Property Organization (WIPO), China was the top country for patent applications in 2020, with over 1.4 million applications filed. This is a reflection of the increased innovation and technological development in the region, which has been partly driven by Apple’s presence.
6) Improvement in the Working Conditions with Strict Quality Standards
Apple has been known to have strict standards for working conditions in its manufacturing facilities, and this has had a positive impact on the working conditions of other manufacturers in the region. According to a report by the Fair Labor Association, 94% of Apple’s supplier facilities in China were found to be in compliance with the company’s code of conduct, which includes standards for working hours, wages, and health and safety.
7) Improving the Overall Supply Chain Process
Apple’s supply chain is known for its efficiency and reliability, and its presence in China has helped to enhance the supply chain capabilities of the region. This has led to faster turnaround times and more reliable delivery of goods for foreign buyers in the China wholesale markets.
Overall, the impact of Apple manufacturers in China on the China wholesale markets for foreign buyers has been largely positive. It has led to improvements in quality, efficiency, and technology, as well as increased trade opportunities and reduced costs.
Chapter 5: 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.
| Manufacturer’s Name | Address | Contact information |
|---|---|---|
| Foxconn | No. 2, Donghuan 2nd Road, Longhua District, Shenzhen 518109, China | Phone: +886-2-2268-3466 |
| Bosch Sensortech | 2/F and 3/F, Green 18, Phase 2, Hong Kong Science Park, Pak Shek Kok, NT, Hong Kong, China | Phone: +85 2-2484-2112 |
| Cirrus Logic | No.2, Yihe Road, Shilong Community, Shiyan Street, Bao’an District, Shenzhen City. | Phone: 86-755-29516888
Cirrus Logic website |
| Qualcomm China | 690 Bi Bo Road, 1, 2&4F, Unit 9 Zhangjiang High-Tech Park, Shanghai 201203, Peoples Republic of China | Phone: Not available Qualcomn website |
| AKM Semiconductor | 24/F, Wyler Centre, Phase 2, 200 Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong | Phone: +852-2418-3700 |
| TSMC China | 4000 Wen Xiang Road, Songjiang, Shanghai, China | Phone: 86-21-57768000
TSMC website |
1. Foxconn – Apple’s Largest Contract Assembler and Manufacturer
This 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 have a giant factory in Shenzhen, China. Foxconn brought revenues of around $175bn in 2018 and it was ranked 24t among the fortune 500 companies.
It manufactures around 60-70% of the iPhones sold each year and Apple is by far the company’s largest customer. This company also developed some equipment for Iphone in order to increase their profit margins.
For example, they developed their own chemicals for polishing the iPhone 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)
Address: No.2, Yihe Road, Shilong Community, Shiyan Street, Bao’an District, Shenzhen City.
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 6: Does China Manufacture or Assemble Apple’s Products
There are two terms that are required to be understood- Assembling and manufacturing. In this chapter, we are going to discuss whether China is a manufacturer of Apple products or an assembler. Let’s move forward.
| Assembler’s name | Contact information |
|---|---|
| Foxconn | Address: No.2, Zihyou St., Tucheng Dist., New Taipei City 236, Taiwan Phone: +886-2-2268-3466 |
| Pegatron | No.96, Ligong Street, Beitou, Taipei 112, Taiwan Phone: +886-2-8143-9001 |
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 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 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, and 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 Apple, and Foxconn is assembling 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.
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Chapter 7: What Products do Chinese Firms Assemble for Apple?
|
Company’s name |
Products it assembles |
|---|---|
| Foxconn | iPhone/iPad series, Macbook |
| Pegatron | iPhone series |
| Goertek | Apple headphones |
| Luxshare | AirPods |
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 iPad series such as iPad generations 3, 4, 5, and 6. Currently, it is also assembling the latest iPad.
2) Pegatron
It is the second assembler of Apple that uses its resources to assemble iPhones. The company has a new partnership with Apple. At the launch of the iPhone 6, Pegatron assembled almost 30% of the phones to meet the demand.
3) Goertek
This is a Chinese-based audio equipment company that makes drivers, audio mics, speakers, and sound algorithms for a variety of companies.
The company uses its Head Quarter facility to assemble Apple Air pods. The newest Apple headphones (Air Pods Max) are assembled with the resources and knowledge of Goertek.
4) Luxshare
Like Goertek, this 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 8: FAQs about 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 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’s presidency between China and USA.
Conclusion
Apple has a lot of attention due to the fact that it is a sign of luxury all over the world. The company’s products have a huge demand and there is no way to meet this demand unless there is a huge workforce present at Apple. That is where China comes in.
Apple’s manufacturing operations in China are an important part of the company’s business strategy. The company’s strong relationship with its manufacturing partners in China makes it easy to produce high-quality products at a lower cost. China’s skillful labor force, low labor costs, and access to raw materials make it an attractive location for Apple’s manufacturing operations. The company’s investments in its manufacturing operations in China also have a positive impact on the country’s economy as well as on foreign import.
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