China’s Apple loss is India’s gain, as 2022 supplier list shows shift in supply chain preferences
- Apple added five new suppliers in mainland China last year but cut eight, while production bases in India rose to 14 from 11
- China remains a production stronghold for the iPhone maker, with 151 of its 188 suppliers having facilities in the country
Apple added five new mainland Chinese suppliers while removing eight in mainland China in its latest financial year ended September 2022, after China’s strict Covid-19 controls disrupted iPhone production last holiday season, according to the latest supplier list published by the US consumer electronics giant.
Apple’s new Chinese suppliers
| Company | Manufacturing location (province) |
|---|---|
| Bichamp Cutting Technology (Hunan) Co, Ltd | Guangdong |
| Cathay Tat Ming (HK) Company Limited | Guangdong; Jiangsu |
| Sunny Optical Technology Co, Ltd | Zhejiang |
| Zhuhai CosMX Battery Co, Ltd | Chongqing, Guangdong |
| Shenzhen Forceblack Technology Co, Ltd | Guangdong |
Among the eight companies removed from the list are Trio Metal Company Limited, a supplier of wire rods based in southern Guangzhou, and display maker Tianma Micro-Electronics. Shenzhen-based Zhenghe Group, which processes and assembles metal and plastic exterior chassis, was also cut.
Apple’s latest supplier list, which was published last week, accounts for 98 per cent of the company’s direct spending on materials, manufacturing and assembly worldwide. The tech giant’s supply chain is closely watched, as changes are seen as a sign of China’s shifting role in global manufacturing.
The bulk of Apple’s manufacturing remains in China, where 151 of its top 188 disclosed suppliers have facilities, compared with 150 in 2021. However, rising labour costs combined with geopolitical tensions with the US and three years of Covid restrictions that just ended this year have pushed foreign businesses to relocate more production to other countries in the region, particularly India and Vietnam.