How Apple Built a Succesful Chinese Supply Chain, and are they TOO Reliant on China?

In this episode...

Renaud and Adrian dissect two recent FT articles concerning how Apple set up a successful supply chain in China that helped them dominate rivals, how they handle the NPI process in a fairly unique way, and whether, in light of the current geopolitical situation, they're too reliant on China and what moves they're making to diversify.

 

Show Sections

00:00 - Greetings.

01:20 - The topic: A focus on Apple. How they built a successful supply chain in China, and whether are they too reliant on China now.

04:00 - "I want to make a product with Apple's quality and design." Realistic?

08:06 - Finding new suppliers to keep the pressure on their supply chain and get the best deal possible.

11:26 - Apple has 15k of their own staff in China. What does this mean?

17:47 - Apple may not own the factories, but they do own a lot of the equipment. Why?

23:32 - They get sub-suppliers to commit to building custom parts just for Apple in large quantities.

27:27 - The benefits of using CMs like Foxconn.

29:29 - Giving away too much control and technical know-how is not the Apple way.

35:27 - Apple's attempts to diversify supply chains into Vietnam and India.

40:07 - Will/should they leave China entirely?

49:48 - Wrapping up.

 

Related content...

• Article 1: How Apple tied its fortunes to China 
• Article 2: What it would take for Apple to disentangle itself from China
• Further confirmation that India’s exports to North America are booming
• ”Enterprise China” – China’s Strategy for Economic Success (Author Interview with Drs. Allen J. Morrison & J. Stewart Black)
• Can We Remove China From Our Supply Chains? [Podcast]
• How Sourcing From India Has Changed In 2022 (Part 1: Trends & Manufacturing Landscape)
• Globalism 2.0: North American Importers To Move Supply Chains Out Of China Soon? [Podcast]
• How to Manage the NPI Process based on your Manufacturer's Ability [Video]

 

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