The iPhone is made in China
The place of manufacture of Apple products
Ever wondered where iPads, iPhones, and other Apple products are designed, manufactured, and assembled? Are Apple products really designed in California and made in China? In this article, I have explored and analyzed Apple's complex global supply chain and distribution system.
Where are Apple's iPhones, iPads and Macs made? And why doesn't the company assemble its products in the USA? For example, how much of an iPad is actually made in the United States? And how many of the components with your average Apple devices are produced under the company's own brand? Who Really Makes the iPhone? How is the iPhone made?
These are just a few of the questions I'll answer in this article as we examine the supply chain for a Mac, iPhone, or iPad and look at the different places each of these products is designed, built, and assembled - and why.
Apple, Foxconn and the supply chain
Let's look at the origins of each piece of Apple product. The biggest difference Apple has from other manufacturers is that it sources its materials and components from other manufacturers that operate around the world. For example, its displays are mainly made in Japan by Japan Display and Sharp, and some are still made in South Korea by LG Display; while the Touch ID sensor in its latest iPad and iPhone models is made in Taiwan by TSMC (Taiwan Semiconductor Manufacturing Company) and Xintec. In fact, Apple's supplier list spans more than 200 different suppliers around the world.
This brings with it a lot of interesting facts about Apple's supply chain where it has to manage a large number of suppliers and bundle their work into a single device. That makes Apple a fascinating company. In order for it to work economically, it has to source parts from different countries and continents, manufacture and assemble parts in another country, have warehouses all over the world to deliver enough equipment for the whole world and then to its customers at a reliable rate to be able to distribute. The iPhone is Apple's most profitable and best-selling product. Around half of all iPhones are now manufactured in a huge production facility in Zhengzhou, central China. This is the story of how an iPhone can land in your hands there.
• Components from more than 200 suppliers go into every iPhone.
• Apple purchases many components for iPhones - such as the memory chip, modem, camera module, microphone, and touchscreen controller - from more than 200 suppliers around the world.
• Foxconn, the Taiwanese company that operates the Zhengzhou plant, even produces smaller parts such as metal housings.
• Apple orders many of the components from global suppliers and then sells them in bulk to one of its contract manufacturers based in China. In Zhengzhou that means Foxconn.
Apple versus Samsung
It is interesting to understand the cost of the manufacturing process compared to other manufacturers like Samsung, who make many of Apple's internal parts and make a greater proportion of components in their own devices. It costs Samsung more to build the Galaxy S6 Edge 64GB over the Apple iPhone 6 Plus 64GB model. The Galaxy S6 Edge 64GB was previously found on Amazon for around € 565.
All of this shows how complex, yet successful, Apple is as a logistical engine to save costs and manage an extensive and complicated supply chain with connections around the globe.
It is considered one of the most talked about brands in technology and is enjoying increasing popularity with investors. Apple is simply one of the most successful companies of our time.
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