The world-famous smartphone brand Apple has a complex worldwide supply chain and distribution system. But have you wondered where the Apple products from iPhone to iPad, are designed, manufactured, and assembled?
Though Apple is a USA-based brand, however, the components of Apple’s products are sent to multiple locations in China, the Czech Republic, Malaysia, Thailand, and South Korea among others on the list. The two famous manufacturing companies, Foxconn and Pegatron owned all the manufacturing facilities located in multiple regions.
Why does not Apple assemble its products in the USA?
Unlike other smartphone manufacturers, the famous Apple outsources its components and materials from other manufacturers across the globe. These manufacturers provide high-quality components are cheap prices in comparison to the US market.
For example, displays are mainly manufactured in Japan by Japan Display and Sharp, but some are manufactured by LG Display in South Korea. Meanwhile, the latest iPad and iPhone model Touch ID sensors are manufactured in Taiwan by TSMC (Taiwan Semiconductor Manufacturing Company) and Xintec. Apple’s supplier list spans more than 200 different suppliers around the world.
Apple and its supply chain
Apple is a great company to understand and research. The distribution of its manufacturers and suppliers across the globe brings into consideration some amazing facts about the brands’ supply chain. As already mentioned the components of Apple products are made in multiple counties including Japan, Taiwan, and South Korea, the company has to manage a huge number of suppliers.
It has to receive and monitor the work of each supplier and assemble them into a single gadget. To operate more efficiently and economically, the USA-based business has to outsource parts from other countries.
While some of the supplying companies manufacture the components and they are then assembled in other factories located in other regions. Apple has warehouses located around the globe to provide enough Apple products for the customers.
Apple makes sure that is no loop in the supply chain process and that the high-quality Apple
products are provided to the brand users at right time.
Some of the major suppliers of Apple are Samsung, Alps Electric, TDK plus Sony in Japan, Borsch in Germany, Qualcomm, Omni Vision, PMC Sierra and Cirrus Logic in the United States, Huizhou Desay in China, TMSC in Taiwan, LG Display in Korea, STMicroelectronics in Italy and France, and NXP in the Netherlands.
Made in China
An Apple product is made everywhere. The reason behind,” Made in China” on the brand’s products is that the major components of an Apple product are manufactured in China, though the manufacturers from other countries like Taiwan and South Korea are also involved.
Besides the Apple products are also assembled in China and that’s the reason a customer still sees “Made in China” on the back of their Apple gadgets. Apart from outsourcing components and assembly, the brand takes the responsibility of designing in the home country.
The stance of Donald Trump’s on Apple outsourcing
In 2016, US President Donald Trump raised a question on the outsourcing and manufacturing of Apple products out of the US. The president asked the management of the US leading smartphone manufacturer to manufacture its smartphones and computers within the country.
Apart from asking questions regarding Mr. Trump’s motives and credentials, this movement also let the people know that Apple products are not made in the USA, though it is an American brand. The assembly plans of the brand are out of the US where it gets cheaper rates for the components and labor.
For bringing in Apple’s assembly plants to the US, Donald Trump arranged a meeting with the CEO, TIM Cook, of the brand. The president suggested bringing back the brand manufacturing back to the states. Mr. President also promised the brand a large cut-off on the taxes.
Apparently, till now it does not seem that Apple would shift all of its manufacturing and assembling plants to the US, but might have to shift a few of its plants during the presidential reign of Trump.
Donald Trump’s plans for Apple and the company’s reaction to the President’s incentives made the iPhone or iPad lovers think that how much of an iPhone or iPad is made in the United States?
Besides, it left a question how many of the iPhone or iPad, or Mac components are manufactured under Apple’s brand? Where is the iPhone made? Who makes the iPhone? Who makes the iPhone? These are the questions that were never asked before the president’s declaration.
Foxconn one of the supplier of Apple is planning to set up a flat-screen display factory in America. It would cost Foxconn around $7bn. If the project gets a green signal from Foxconn, the project would generate 30,000 to 50,000 jobs in the economy However it is important to mention that this plan of Foxconn is on the table since 2014.
Chairman Terry Gou Of Foxconn said that the company would consider moving to the US only if the government would encourage in terms of access to cheap land and power.
Related: Where Are iPhones Made?
The world’s best smartphone and computer manufacturer Apple’s outsourcing of components and manufacturing is worldwide and complex. Though the USA-based brand involves multiple suppliers in different regions across the globe, the company takes the responsibility to design, develop and market its products including iPhone or iPad.
The creation of their software takes place at the head office of Apple in the United States. Besides operating globally, the company remains a big employer in the US.
The components of Apple products are manufactured across the globe and combined in perfect harmony to come up with one of the most iconic brands of the current century.
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