Technology

Apple's supply chain behind the door, really make companies "love it and hate it"

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The emergence of the iPhone, laid the era belonging to the smartphone came, when it was not Steve Jobs said, I want only one button on the phone. Under extremely demanding conditions, the first iPhone was born. If Steve Jobs, the CEO of Apple, is an idealist, then for the current Apple CEO Cook, he is a realist, it can not be said that Cook does not have feelings, he has is as a businessman's mind, the company's profitability to maximize his goal.

Apple's supply chain behind the door, really make companies "love it and hate it"

Apple's Supply Chain

So if it is as a part of the supply chain is not as much of a meat and potatoes as it used to be. Although it is said to ride on Apple this road will accordingly bring a lot of orders, but Apple requirements and high has been to the point of fault, the corresponding extremely low profits will be discouraged.

Apple's supply chain behind the door, really make companies "love it and hate it"

Apple's layout around the world, for the supply chain management, can guarantee to Apple's products to the fastest speed out of the factory, with the best performance out of the field. The model adopted is with efficiency, a series of operations are designed to improve efficiency and maximize benefits.

Apple's supply chain behind the door, really make companies "love it and hate it"

Apple places a high value on transparency at every step of the way, and an Apple phone contains at least 500 components. It is mainly supplied by more than 200 plus suppliers upstream. For each step of its production, Apple must control at every level.

You know that smart phones have extremely high requirements for three aspects, three aspects is high performance, meaning that the performance of all aspects of the generation is stronger than one. Low power consumption means that although powerful but low power consumption, let's say the advertising slogan of a cell phone brand in China, probably means "charging five minutes and talking for two hours". And the miniaturization of components means that the chip and other objects are getting smaller and smaller, but more and more powerful.

Apple as one of the best is naturally not to be left behind. First of all, for the most core part of Apple's cell phones Apple naturally or their own manufacturing, those expensive and fine components are almost all produced by the United States itself, or else to Japan or South Korea.

Apple's supply chain behind the door, really make companies "love it and hate it"

Fruit chain suppliers in China

It can be imagined that Apple's level of management of the supply chain is also very high, and for key components, Apple takes the mode of monitoring and management. For example, Apple has a lot of say in China's Apple suppliers, and in 2020 Apple unilaterally removed as many as 34 suppliers. As many as close to twenty of these Chinese suppliers, and the new inclusion of 12 mainland manufacturers.

Since 2012, Apple has been announcing the corresponding suppliers every year accordingly. In the past, there were many companies that wanted to be on this list, but is it really a good idea to be on the list? It is important to know that the decision is in the hands of others, not firmly in your own hands.

For China, our Apple supply chain industry is mainly parts supply, with mainland China and Hong Kong providing precision components and material supply modules, and suppliers in Taiwan undertaking foundry modules.

We can say that we are a Chinese factory that belongs to Apple in name only.

Apple's supply chain behind the door, really make companies "love it and hate it"

But there are also some suppliers in China that have a higher status, such as Taiwan's TSMC and Foxconn. If things look bad, then Foxconn should also consider to see if they can get rid of the pressure and trouble brought by the fruit chain.

First of all, the profit given to Apple is too low, which on the one hand will lead to suppliers to give workers lower wages, and in the face of Apple, there are countless companies behind the first to try to replace it, the pressure can be imagined.

If it is for TSMC, first of all, TSMC is one of the world's leading chip foundry, if the loss of Apple is not worried about their own orders. This aspect of TSMC is not to consider so much.

And what would happen to the Chinese market if there were no Apple in China? To this Foxconn founder Guo Taiming replied, "Many Chinese companies would go out of business."

I do not dare to say what will happen to other Chinese suppliers, Foxconn companies will not die but also shed a layer of skin. But for his statement, in fact, only in the alarmist.

Apple's supply chain behind the door, really make companies "love it and hate it"

Since the news of Ovation's removal from Apple, although Ovation has been hit hard, it has served as a good example for other Chinese Apple suppliers.

Ovation originally as the Apple cell phone lens supplier is also Apple said kicked.

Leave Apple's Ovation can also be said to be on the verge of extinction. But Ovation did not give up on its own spur, did not give up on the heart of the effort, Ovation in the emerging field on the big splash, in the smart car and AR, VR and other areas above the layout. This layout is not just coming, as early as in 2015 Ovation's eyes were locked in the field of intelligent vehicles. As you can imagine, Ovation also has a backhand.

Apple's supply chain behind the door, really make companies "love it and hate it"

It is clear that without Apple, Chinese companies can still live well. Although they may not be able to adapt for a while, as long as they find their own way out, they will not worry about where to go. In this regard, CCTV has solemnly reminded the relevant enterprises to reduce "Apple dependence". For Foxconn, Apple is like its sky like its land, and this is really something to be solved. Therefore, Guo's answer is out of his own consideration for the enterprise.

Summary

Looking back, whether it has failed and re-emerged Ovation, or has been stubbornly stubborn Foxconn. It must be said that Apple's supply chain is like a double-edged sword, "success also Apple, defeat also Apple". Apple's role is obvious and can not be ignored. In this regard, for the majority of Chinese companies in the Apple supply chain, we must learn to shine a light on the pros and cons and weigh the pros and cons. Eggs often can not be placed in a basket, but should also learn to put more baskets. Learn to leave yourself some retreats, so that if you are abandoned by Apple, you can still survive.