Behind Apple's "dominance" in China, it is inseparable from the help of these 3 Chinese companies

When it comes to the highest-selling mobile phone brand in China, many people should think of Apple. Compared with domestic brands, Apple's sales in China are still leading. Although the increase in sales in previous years has declined, with the price-reducing iPhone13 series, it has quickly reoccupied the Chinese mobile phone market. According to Apple's first quarter financial report, in the first quarter of 2022 under the influence of the epidemic, Apple's net profit reached 867.3 billion yuan!

Apple only covers the sky in China and occupies a large share of the mobile phone market, in fact, it is inseparable from the help of three Chinese companies. One company provides raw materials for Apple, rare earths, one company provides large component assembly, and one company provides core chips. Which three Chinese companies are helping Apple in this way?

First, Apple is still sitting firmly at the top of the domestic mobile phone high-end market

The domestic epidemic has been in a small range of recurrence, under the epidemic, many enterprises have difficulties in operation, and even the sales of many technology giants' products have declined. With a new product strategy, Apple launched a relatively low-priced iPhone13 series, and quickly regained its stable occupation of the domestic mobile phone high-end market.

Even the first quarter of 2022 also received the best sales record in history, with a net profit of 123.945 billion yuan in the first quarter of 2022, equivalent to 867.3 billion yuan. Sales have not decreased but increased, and it can be said that the impact of the epidemic on Apple is very small.

Apple as a foreign brand sales so good, in this period, how about domestic mobile phone brands?

According to the April mobile phone sales list, it can be known that the top five brands in domestic mobile phone sales are Apple, Glory, Xiaomi, OPPO, and vivo. After Apple, the back is all domestic brands. In fact, April belongs to the off-season for mobile phone sales, and it is not easy to maintain the first sales in the off-season.

Second, Jiang Suhuahong Technology has long provided rare earth resources for Apple

Many friends may not know what role rare earth resources have in mobile phone production. Rare earths are known as the "gold" in industrial manufacturing, which can be made into rare earth permanent magnet materials luminescent materials and storage materials, which are essential for many electronic product materials.

The core raw material for the production of Apple mobile phones is rare earths, and the addition of rare elements can make the performance of Apple mobile phones more excellent and stable. In order to stabilize the production of mobile phones, it is necessary to stabilize the supply of rare earths first.

Therefore, the enterprise that is very helpful for Apple production is Jiangsu Huahong Technology. Jiangsu Huahong Technology has signed a contract with Apple this year, planning to provide 50 tons of rare earths to Apple every month. With a stable rare earth industry, Apple can focus more on improving the level of products. Moreover, collecting rare earths from China, producing mobile phones locally in China, and supplying them to the Chinese market can greatly save costs.

Third, Foxconn is the main assembler of Apple

The production of a mobile phone requires a lot of manpower and material resources to assemble various accessories. Apple's business in this regard is mainly handed over to Foxconn. Foxconn has always been a foundry enterprise for the production of Apple products, and has been continuously OEM for Apple for more than a decade, mainly relying on a large number of cheap labor in China.

In recent years, the price of domestic labor in China has risen, and Foxconn has transferred some of its production lines to India and Vietnam. However, China is still the main force of production, in order to maintain the production capacity of Apple's mobile phones.

TSMC is Apple's chip supplier

The core of mobile phone production is the chip, the chip determines the performance of the mobile phone, and the chip is high-tech, and other companies are generally difficult to imitate. TSMC is a leading enterprise in the manufacturing industry because it grasps the manufacture of chips.

This year, XMC is expected to start mass production of 3nm chips in the second half of the year, and Apple has also booked this chip, which is expected to help improve the performance of the new generation of Apple models. However, in recent years, because of the rise in raw material prices and rising labor costs, the chips produced by TSMC have also faced pressure to further increase their quotations.

brief summary

Although Apple's mobile phone can maintain good performance and production can not be separated from the help of Chinese companies, but for Apple, Chinese companies are only suppliers, and the two sides cooperate to make money. In 2020, Apple also severed ties with 34 Chinese suppliers, and the "break" with OFILM and BOE was once hotly discussed.

For Apple to occupy the Chinese mobile phone market with the help of domestic enterprises, the net profit in the first quarter was 867.3 billion, what do you think? Welcome to leave a message let's discuss it together.