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|Apple has 200 suppliers across the globe|
In Vietnam, US-based technology giant Apple recorded 21 suppliers, higher than the 14 in 2018. The figure is also higher than Thailand with 15 suppliers and India with nine suppliers, according to newswire Nikkei Asia Review.
The growing number of suppliers in the country is part of the tech giant's efforts to remove production lines from China, fuelled by prolonged US-China tensions.
Over the past three years, the iPhone maker has been diversifying its supply chain across many countries, instead of focusing on only the 1.4-billion market like before. Specifically, it has 32 suppliers in the US, 34 suppliers in Japan, and 48 suppliers in Taiwan.
Nevertheless, China remains in the lead with 51 suppliers. It is irreplaceable for global companies because of constant improvements in manufacturing capacity and maintaining acceptable operation costs.
Nikkei Asia Review cited Apple’s supply chain manager as saying that most Chinese companies are securing contracts with Apple by undercutting other manufacturers in other countries. By partnering up with Apple which is famous for strict quality standards, these suppliers have been steadily improving their capacity to make it into the production chains of other global companies.