Apple can now become the world's largest smartphone manufacturer in terms of shipments, mainly thanks to two points, one is Apple's own excellent technological innovation capabilities, whether it is the IOS system or the A series chip, it provides a good experience for iPhones. Another reason is Apple's strong integration and influence in the supply chain. Basically, it can be said that the companies that can enter Apple's supply chain are the best in the industry, and Apple has very high requirements for suppliers.
It is worth noting that Apple also has a lot of control over the supply chain, and it can be said that Apple can adjust the supply chain at any time and remove some of the manufacturers that do not meet the standards. Just recently, Apple's supplier list for 2023 was released, and many Chinese companies were "kicked out of the fruit chain".
There are a lot of manufacturers who want to enter Apple's supply chain, mainly because Apple's iPhone shipments are huge, and they can get a large number of Apple orders when they enter the fruit chain. In fact, this has also led to many supply chain manufacturers have "Apple dependence", because Apple's supply chain has very strict requirements for suppliers' standards, so the industry sometimes thinks that the companies that have been removed from suppliers by Apple are gradually unable to keep up with the demand in related fields, which is equivalent to losing certification, which will also lead to the number of orders from these manufacturers to begin to decline.
Apple's dependence on China's supply chain has always been very high, and after entering the Chinese market, Apple basically completed most of its manufacturing work in China, and the number of Chinese companies in the fruit chain was once as high as hundreds. However, Apple's transfer of production capacity in recent years is also obvious to all, driven by Apple's "de-China" strategy, Apple not only accelerated the transfer of production capacity to India, Southeast Asia and other regions, but also brought Foxconn and other foundries to India to invest and build factories.
At the same time, the number of Chinese companies in Apple's supply chain is also decreasing, from about 50% of the iPhone 13 to 36% of the iPhone 15. Apple removed a large number of Chinese companies from Apple's supply chain, not because the production capacity quality and technical standards of these Chinese companies have declined, but because Apple wants to "decouple and break the chain".
From the list of suppliers announced by Apple in 2023, it can be seen that 4 suppliers from Chinese enterprises have been removed, namely Jiangsu Jingyan Technology, Meiyingsen Group, and Shenzhen DEREN Electronics, and when it is profitable.
In fact, CCTV has previously called for getting rid of "Apple dependence", suggesting that supplier companies should start diversified deployment, find more customers, and expand customer groups to reduce dependence on Apple. For example, we are looking for other electronic device manufacturers or expanding our business scope and developing new product types in cooperation with other manufacturers.
As a well-known lens module manufacturer in China, OFILM has mastered advanced core technology and excellent production capacity in the field of lens modules, and once became the top optical giant in the industry. It's just that OFILM, as Apple's supplier, has a large number of orders from Apple, and after being terminated by Apple for no reason in 2021, the number of orders for OFILM began to decrease rapidly.
Judging from the public data, OFILM's revenue once decreased by more than 50%, and at the same time, profits fell by 90%, which even led to OFILM once on the verge of bankruptcy and continuous reduction of production capacity. After that, Huawei began to strengthen the construction of the domestic supply chain, and launched a series of in-depth cooperation with OFILM, under the explosion of the Mate60 series, OFILM also got a lot of OEM orders, and production capacity and revenue began to recover.
Apple's 2023 supplier list is public, and four of them have been removed, from which it is not difficult to see that Apple is now accelerating the transfer of production capacity, and Chinese companies should also prepare early, only by getting rid of Apple dependence, can we avoid similar situations from happening again.
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