Research Reports

Overview

Summary
As international geopolitical risks rise, Apple is beginning to face the issue of supply chain relocation. Since 2000, Apple has established a complete supply chain layout in China. Before the outbreak of the epidemic, the assembly factory located in Zhengzhou of Henan provided sufficient production capacity for iPhones every year, allowing the products to be exported worldwide. However, the factory's capacity utilization rate continued to decline after the outbreak of the epidemic. In November 2022, a large-scale protest erupted due to some employees' dissatisfaction with wages and epidemic restrictions, leading to serious problems in the supply chain. Apple realized that it could no longer concentrate a large amount of production capacity on a single supplier or region, so it accelerated the relocation of its supply chain.

Table of Contents
1. Relocation of Apple’s Supply Chain to India
  (1) Designed in California, Assembled in China
  (2) China-US Trade War Triggered Tension between the Two Countries 
  (3) Scission of Production during Pandemic

2. Analysis on Production Bases of Apple’s Suppliers in India

3. Follow-Up, Analysis, and Prospect of Apple’s Relocated Supply Chain to India

4. TRI’s View
  (1)Escalating Geopolitical Risks Necessitate Apple’s Transfer of Supply Chain
  (2) “Made in India” Now an Inevitable Trend, though “Dispersion of Risks” Remains as Apple’s
  Prioritized Concern in Supply Chain Strategies

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