Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Apple Suppliers Slowly Boosting US Presence To Cut China Reliance

Published 05/10/2022, 10:56
Updated 05/10/2022, 11:40
© Reuters.  Apple Suppliers Slowly Boosting US Presence To Cut China Reliance

© Reuters. Apple Suppliers Slowly Boosting US Presence To Cut China Reliance

Apple Inc. (NASDAQ: NASDAQ:AAPL) suppliers are gradually establishing new production facilities in the U.S., with a focus on California, to move more manufacturing out of China.

What Happened: Apple released a supplier list for the financial year 2021, which shows that 48 of the company’s 180 suppliers had some operations in the U.S. as of September 2021. This number is up from 25 a year ago, says a report in The Wall Street Journal. California had more than 30 sites, up from less than 10 a year ago.

Apple said the list was posted online last week. It reveals that many major suppliers, including chip makers Qualcomm Inc . (NASDAQ: NASDAQ:QCOM) and Taiwan Semiconductor Manufacturing Co., (NYSE: TSM) product assembler Foxconn Technology Group and provider of image sensors Sony Group Corp., (NYSE: SONY) added production sites in the U.S. during the year.

The supplier list, however, makes no mention of how much business Apple does with each company. Additionally, there are some errors, too, in the list, and actual statistics may slightly differ from official data.

According to representatives of the suppliers, these factories often consist of small production lines for trying out new goods or services. They continue to be crucial to Apple’s supply chain, though.

One thing is clear from the list: China continues to dominate Apple’s supply chain, with about 150 of its 180 suppliers having facilities there, according to the report. These vendors supply chips, screens, camera components, and motors.

Why It’s Important: The sites in the U.S., though still a minority, may play an important role in Apple’s efforts to diversify some production away from China amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.

As part of that strategy, the Cupertino-based tech giant is looking at India and Vietnam. Apple recently even decided to shift some of its iPhone production from China to India. Just three weeks after the announcement of the iPhone 14, Apple announced last week that it has begun manufacturing the new phone in India. For the first time since its release, Apple began manufacturing a new phone outside China so soon after its release, according to WSJ.

Price Action: Apple closed Tuesday’s session down 0.07% at $146.00, according to Benzinga Pro data,

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.