Tapping factories in Brazil and India has not lessened Apple Inc's dependence on China, the company's supply chain data shows, raising the stakes ...
REUTERS: Tapping factories in Brazil and India has not lessened Apple Inc's dependence on China, the company's supply chain data shows, raising the stakes for the iPhone maker as U.S. President Donald Trump wages a trade war and promises more tariffs.
Apple taps the India operations to avoid steep import duties on iPhones in one of the last fast-growing mobile phone markets on the planet, similar to Apple and Foxconn's move to open a production facility in Brazil https://reut.rs/2U9IuLj in 2011. Reuters analyzed five years' worth of supply chain data published by Apple. The data includes more than 750 locations each year between 2015 and 2019 for the California company's top 200 suppliers based on Apple's spending. Apple does not disclose how much it spends with each, and the companies on the list can change as different suppliers make the top-200 cutoff among Apple's thousands of suppliers.
Other phone makers ship far fewer units and have more flexibility. Alphabet Inc’s Google is shifting its Pixel smartphone production to Vietnam from China starting this year as it builds a cheap supply chain in Southeast Asia, the Nikkei business daily reported on Wednesday. Outside of China,"there few places in the world that have the infrastructure to produce 600,000 phones a day," said Dave Evans, chief executive of San Francisco supply chain firm Fictiv.
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