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Apple supply chain
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Apple supply chain
As of 2018, Apple used components from 43 countries. The majority of assembling is done by Taiwanese original design manufacturer firms Foxconn, Pegatron, Wistron and Compal Electronics with factories mostly located inside China, but also Brazil, and India.
Apple has been able to capture more than half of the value of the iPhone, despite the fact that the manufacture of the product is entirely outsourced. Labor costs in China account for the smallest share: 1.8 percent. Other major component providers—such as Samsung and LG—have captured slightly over 14 percent of the value of the iPhone, while the cost of raw materials being just over one-fifth of the total value .
Several product leaks have come from Apple's supply chain rather than its corporate offices, leading Apple to reinforce its secrecy measures.
Apple's decision to outsource its manufacturing has received significant criticism, due to allegations of poor working conditions, long work hours, and other labor rights violations. In response, Apple launched its Supplier Responsibility program, which aimed to improve Apple's oversight of supplier partners and enforce its ethics policies. It has also attempted to introduce greater diversification into its supply chain by sourcing products from other countries.
As of 2021[update], Apple uses components from 43 countries. The majority of assembling is done by Taiwanese original design manufacturer firms Foxconn, Pegatron, Wistron and Compal Electronics with factories mostly located inside China, but also Brazil, and India.
Taiwan Semiconductor Manufacturing Co., (TSMC) is a pure-play semiconductor manufacturing company. They make the majority of Apple's smartphone SoCs, with Samsung Semiconductor, playing a minority role. Apple, alone accounted for over 25% of TSMC's total income in 2021. Apple's Bionic lineup of smartphone SoCs, are currently made exclusively by TSMC from the A11 bionic onward, previously manufacturing was shared with Samsung. The M series of Apple SoC for consumer computers and tablets is made by TSMC.
Apple's considerable commercial success is partly attributable to the outsourcing of its consumer electronics production to Asia. Apple's manufacturers have relied on China's "floating population" of 200 million migrants.
During the 2022 COVID-19 protests in China, Chinese state-owned company Wingtech was reported by The Wall Street Journal to gain an additional foothold[vague] in Apple's supply chain following protests at a Foxconn factory in the Zhengzhou Airport Economy Zone.
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Apple supply chain
As of 2018, Apple used components from 43 countries. The majority of assembling is done by Taiwanese original design manufacturer firms Foxconn, Pegatron, Wistron and Compal Electronics with factories mostly located inside China, but also Brazil, and India.
Apple has been able to capture more than half of the value of the iPhone, despite the fact that the manufacture of the product is entirely outsourced. Labor costs in China account for the smallest share: 1.8 percent. Other major component providers—such as Samsung and LG—have captured slightly over 14 percent of the value of the iPhone, while the cost of raw materials being just over one-fifth of the total value .
Several product leaks have come from Apple's supply chain rather than its corporate offices, leading Apple to reinforce its secrecy measures.
Apple's decision to outsource its manufacturing has received significant criticism, due to allegations of poor working conditions, long work hours, and other labor rights violations. In response, Apple launched its Supplier Responsibility program, which aimed to improve Apple's oversight of supplier partners and enforce its ethics policies. It has also attempted to introduce greater diversification into its supply chain by sourcing products from other countries.
As of 2021[update], Apple uses components from 43 countries. The majority of assembling is done by Taiwanese original design manufacturer firms Foxconn, Pegatron, Wistron and Compal Electronics with factories mostly located inside China, but also Brazil, and India.
Taiwan Semiconductor Manufacturing Co., (TSMC) is a pure-play semiconductor manufacturing company. They make the majority of Apple's smartphone SoCs, with Samsung Semiconductor, playing a minority role. Apple, alone accounted for over 25% of TSMC's total income in 2021. Apple's Bionic lineup of smartphone SoCs, are currently made exclusively by TSMC from the A11 bionic onward, previously manufacturing was shared with Samsung. The M series of Apple SoC for consumer computers and tablets is made by TSMC.
Apple's considerable commercial success is partly attributable to the outsourcing of its consumer electronics production to Asia. Apple's manufacturers have relied on China's "floating population" of 200 million migrants.
During the 2022 COVID-19 protests in China, Chinese state-owned company Wingtech was reported by The Wall Street Journal to gain an additional foothold[vague] in Apple's supply chain following protests at a Foxconn factory in the Zhengzhou Airport Economy Zone.