As iPhone14 begins mass production, iPhone14 suppliers are gradually exposed. Many Chinese companies have entered the Apple supply chain, among which Luxshare Precision has benefited the most. This is obviously in line with the previous rumors that Apple will reduce its exposure to the Chinese supply chain. The lack of reliance highlights that Apple continues to strengthen cooperation with the Chinese supply chain.
Among Apple's many Chinese suppliers, Luxshare Precision has become Apple's iPhone OEM for the first time. Apple seems to hope to use Luxshare Precision to compete with Foxconn and reduce iPhone OEM production costs, but Foxconn is still Apple's As the largest OEM manufacturer, most of the iPhone 14 will be manufactured by Foxconn.
In addition to becoming an OEM for iPhone 14, Luxshare Precision also received an order for VCM motors, which shows that the cooperation between Apple and Luxshare Precision is strengthening. Previously, Luxshare Precision had already OEMed , AirPods, and other accessories for Apple. Now, for the first time, it has become an OEM for Apple. The iPhone OEM also supplies VCM motors, which highlights Apple's importance to Luxshare Precision. Some industry insiders even pointed out that Apple's automotive OEM may also be shared by Foxconn's Luxshare Precision. Luxshare Precision has established an automobile manufacturing joint venture with Chery.
OLED panel suppliers continue to be supplied by Samsung , LGD and BOE . This also broke the previous rumors that Apple would kick BOE out of the supply chain. Industry insiders pointed out that Apple will not give up BOE easily because BOE’s OLED The panel price is much lower than that of LGD and Samsung. Using pressure from BOE can force Samsung and LGD to cut prices.
In addition to Luxshare Precision and BOE, it is said that more than 200 of the iPhone 14's more than 200 suppliers are Chinese industrial chain companies, which shows that Apple still values Chinese manufacturing. After all, Chinese manufacturing has formed a fairly complete industrial chain. China's logistics efficiency is very high, and the overall production cost is actually not much higher than , Vietnam, , and India.
In the past two years, Apple has been pushing Foxconn to set up factories in India and Vietnam. This has made the industry worried that Apple will reduce its reliance on Chinese manufacturing. This has triggered many discussions. However, Apple has faced many problems after setting up factories in India and Vietnam.
Apple and Foxconn’s factories in India have been accused of low production efficiency and inferior production quality to those made in China. Local workers are unwilling to work overtime and are not skilled enough. Vietnam factories have higher production efficiency, but AirPods produced in Vietnam have burrs and glue overflow. Other problems, the quality is not as good as made in China.
This year, Pegatron's Shanghai factory stopped production for some reason. Factories in Vietnam, India and other countries were unable to accept the production capacity of Pegatron's Shanghai factory. Foxconn's Zhengzhou factory almost accepted it. The Zhengzhou Foxconn factory worked in two shifts for more than a month despite insufficient employees. The production model ensures the supply of iPhones. Of course, Zhengzhou Foxconn also offered generous compensation of nearly 9,000 yuan in additional bonuses for 90 days.
This shows that Made in China has many advantages. It can maintain quality and quantity, production efficiency is very efficient, and it also has huge production capacity flexibility, which is inseparable from the characteristics of Made in China. Made in China has formed a complete industrial chain. Relying on high logistics efficiency, materials can be delivered on time according to Foxconn's requirements, ensuring the efficient operation of Foxconn's production lines. At the same time, it can also increase production capacity in special stages according to Foxconn's requirements. Supporting companies are in At critical moments, even the boss can personally go to work 24 hours a day to significantly increase production capacity. This is consistent with Apple's production capacity needs. The highest sales of iPhone are often in the fourth quarter of each year, but factories in India and Vietnam lack this ability.
It is precisely because of these advantages of manufacturing in China that although Apple has been pushing Foxconn to transfer production capacity to India and Vietnam, its main production capacity still relies on manufacturing in China, and even factories in India and Vietnam need to rely on the Chinese supply chain to provide some accessories.
Apple has a close relationship with the Chinese market. In addition to relying on Chinese manufacturing, Apple also needs the Chinese market very much. Among Apple's major regional markets in the past two years, the Chinese market has contributed the fastest revenue growth, and it has been Apple's performance growth. Engine, well-known Apple analyst Ming-Chi Kuo believes that the main growth of iPhone 14 is expected to mainly rely on the Chinese market, because Chinese consumers attach great importance to the appearance of iPhone. iPhone 14 adopts a true full screen for the first time. The change in appearance is expected to promote a wave of iPhone sales in China. upsurge.
