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Apple adds six Chinese suppliers, but cuts seven mainland contractors in gradual move to diversify its manufacturing network
- Mainland China remains the US tech giant’s primary production base, where about half of factories run by its top 190 disclosed suppliers are located
- Apple’s latest supplier listing signals a gradual move to diversify its manufacturing network beyond China to countries like India and Vietnam
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Apple added six new Chinese suppliers and cut seven previous contractors on the mainland during its past financial year to September, signalling the iPhone maker’s slow and gradual move to diversify its manufacturing supply chain in Asia.
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Mainland China remains the US tech giant’s primary production base, where about half of the factories run by its top 190 disclosed suppliers are located, according to a South China Morning Post analysis of the firm’s contractor list for its financial year ended September 25, 2021.
Apple’s latest published supplier list represents 98 per cent of the company’s direct spending for materials, manufacturing and assembly worldwide. Data on each supplier’s monetary value and production capacity was not disclosed.
The latest listing reflects how Apple has moved to diversify its supply chain beyond China to countries like India and Vietnam, as Covid-19 lockdowns on the mainland disrupt manufacturing activity and growing tensions between Beijing and Washington further unsettle business in the world’s second-largest economy.
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Apple fans in China queue up to buy iPhone 14 as new models hit stores
Apple fans in China queue up to buy iPhone 14 as new models hit stores
Apple’s latest supplier list also marked a sharp contrast with its previous preferences from 2017 to 2020, when nearly one-third of contractors were from mainland China.
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