Not only China. Where the iPhone is made - from components to final assembly

Based on materials Android Authority

It is possible to treat Apple and its main product in different ways, but it is difficult

argue that the iPhone is the mostrecognizable smartphone in the world. He is also the most surrounded by many stereotypes and conjectures. One of them sounds like "all iPhones have long been made in China." Is it really? Let's see where brand new iPhones actually end up in the hands of happy owners.

Before Assembly: Where Do iPhone Components Come From?

The easiest way, of course, would be to take at face value the inscription "Made in China" and stop there. However, not everything that is required to create an iPhone comes from China.

So, the iPhone display is made by either Samsung,or LG in South Korea. At the same time, flash memory and DRAM are most likely made at Kioxia factories in Japan. And the Gorilla Glass that protects the screen can be made at Corning's factory in the US, Taiwan, or Japan. Apple's own A-series chipset is designed in California and manufactured by Taiwanese company TSMC. And that's just what's on the surface.

Apple also uses third partycompanies to produce small, sometimes custom-made components such as power management chips, USB microcontrollers, wireless modems, and OLED controllers. They can be supplied by large companies such as Broadcom and Texas Instruments, as well as by smaller manufacturers in Southeast Asia. In a number of countries, Apple has even tried to source cobalt directly from mining companies to ensure shortages don't affect its ability to make iPhone batteries.

The choice of supplier is of great importance, and notfor quality control reasons only. Apple, along with other Silicon Valley giants, has been accused of relying on child labor and unethical mining practices to cut costs. It goes without saying that such allegations can lead to costly lawsuits and threats to the company's reputation.

Final assembly: where is the iPhone made?

But if we talk not about individual components, butalready about ready-made iPhones, then who collects these smartphones before they get to you? Once upon a time, all iPhones were assembled in factories in China, but now the situation is starting to change.

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However, most of the factories involved iniPhone assembly is still located in China. The largest of these, owned by Apple manufacturing partner Foxconn, is in Zhengzhou and employs more than 300,000 people. The complex is more like a mini-city than an ordinary industrial site. This isn't surprising given that Foxconn reportedly assembles over half a million iPhones here in a single day. But this situation will not last forever, as Apple plans to move some of its production to neighboring countries such as India and Vietnam.

Workers at the Foxconn Zhenzhou plant leave the bond zone at the end of the day. Photo: New York Times

Apple is not the only manufacturing companyconsumer electronics, which has recently gone beyond China. So, Samsung and Xiaomi have had great success in other Asian countries. The principle of China Plus One (China plus one) has become a popular business strategy, as companies seek to reduce operating costs and reduce their dependence on one region.

India and Vietnam offer benefits to foreignersinvestors wishing to open their own production. They also provide geopolitical and economic stability, factors that have had a major impact on Apple iPhone production in China. These problems forced the company to issue a press release warning of longer waiting times for deliveries.

Why does Apple assemble its devices in Vietnam?

Vietnam is strategically located forglobal shipping - the country is in close geographic proximity to the current key points of the Apple supply chain, such as China, Taiwan, Japan and others. It also has free trade agreements with other East Asian countries and is a member of the Association of Southeast Asian Nations (ASEAN). Finally, the entire Vietnamese economy is built on exports. In areas ranging from agricultural products to clothing and electronics, the country has benefited greatly from the diversification of Western companies that want to reduce dependence on China.

Apple is also not new to Vietnam - the company is alreadyassembled smaller devices in that country, such as wired EarPods. And, according to a source cited by Nikkei, Apple began assembling AirPods in Vietnam in March 2020. This was soon followed by the more expensive AirPods Pro. Apple is now moving much of its iPad, MacBook and Apple Watch production to Vietnam.

The Cupertino-based company plans to achieve thesegoals through its manufacturing partners Foxconn, Pegatron and Wistron. According to local news reports, as of early 2022, Apple began assembling devices at 11 factories owned by various companies in Vietnam. Around the same time, Foxconn also received a license from the Vietnamese government to build a $270 million assembly plant in Bac Giang province, less than 100 kilometers from Hanoi. It is reported that the capacity of the enterprise will be enough to ship eight million laptops and tablets a year.

Why are iPhones made in India now?

India, the second key country for Apple,offers strong incentives to start production compared to many neighbors. A government initiative called Make in India ("Make in India") was a resounding success. In 2020, it launched a $6 billion manufacturing incentive scheme that encourages companies to set up smartphone and electronic component manufacturing facilities domestically.

Android device manufacturers such asXiaomi, Oppo and Samsung have already joined the Make in India initiative by combining their own and third-party manufacturing facilities. Examples of the latter include Bharat FIH and Dixon Technologies, which assemble Xiaomi and Samsung smartphones.

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Given all this, it's no surprise that Appleseeks to follow their example. It also helps that its largest partner, Foxconn, already has a strong presence in India. The aforementioned Bharat FIH is a subsidiary of Foxconn Technology Group.

Apple's decision to move its assembly lines toIndia may also increase the iPhone's market share in the region. India currently levies a 22 percent customs duty on imported smartphones. Because of this, the iPhone in this country is significantly more expensive than in most Western markets.

However, with local production, Apple canbypass high customs duties and reduce prices due to these savings. In fact, the company has implemented such a strategy with previous-generation iPhone models that it already assembles in India. While the latest iPhone sells at a hefty markup in India, older models are often sold at deep discounts, likely due to the aforementioned tax breaks.

With the release of the iPhone 14, Apple began assembly for the first timecurrent generation iPhone models in India. The company again used the services of Foxconn, in particular, its Sriperumbudur plant in Tamil Nadu. However, Apple decided to move only a small part of its production of the iPhone 14 from China to India - approximately 5% immediately after the release of the smartphone on the market.

Who will make Apple products in the future?

Even despite the migration of Apple to the South andEast Asia, the bulk of the company's production capacity will remain in China. Some key electronic components continue to be sourced from this region. In addition, China has a significant manufacturing infrastructure. However, over time, the dominant role of this country is likely to decline. However, Apple's existing partner factories will benefit anyway, as they continue to build and operate facilities even outside of China.

Above, we discussed why Apple might beit is advantageous to move the assembly to Vietnam and India in the coming years. Financial projections suggest that change will come sooner rather than later. A JPMorgan analyst said the following in a note to the company's clients:

Vietnam becomes the center of productioncomponents (camera modules) and electronic circuits for smaller products (Apple Watch, Mac, iPad) and is already the mainstream of AirPods production. For iPhone components, India seems to be the preferred location in terms of supply chain diversification outside of China.

The analyst also calculated that by 2025, Applewill move about 25% of iPhone production to India and 65% of AirPods assembly to Vietnam. iPad, MacBook and Apple Watch assembly may also be moved from China.

So a clear answer to the question, whereiPhone is made, no. The final assembly of devices takes place in two or three countries, and individual components and raw materials for the iPhone come from almost all corners of the world.