Apple suppliers shifted from Taiwanese to Chinese, to keep costs low

Apple is trying to reduce production costs. It has been actively increasing the number of Chinese suppliers in the chain for the iPhone, iPad and MacBook. The information comes from industry sources cited by DigiTimes, who claim that Taiwan supply chain players are forced to find ways to counter this move. Apple’s orders represent a major part of Taiwanese suppliers’ revenue, but that is now jeopardized as the US-company is seeking out new ways to keep costs down.

Apparently, Apple is no longer relying on “top consumer groups” for its products. Instead, it is focusing more on production costs which are lower for components manufactured by Chinese counterparts. In the past years Apple has moved MacBook and iPhone battery module orders to China’s Desay Battery Technology and Sunwoda Electronic. Former Taiwan-based battery module maker Simplo Technology is now manufacturing batteries for electric bikes and spare battery modules for datacenters.

Same goes for Taiwanese metal chassis maker Catcher Technology as the company is turning towards Chinese high-end device vendors. This comes after Apple moved part of MacBook metal chassis orders to China’s Everwin Precision Technology.

Recent rumors of an upcoming budget MacBook Air are backing the report up, as Apple attempts to deliver more competitive products.

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Anton D. Nagy
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