Will Apple’s Diversification Beyond China Boost Prices for its Products?

Last year, Apple (AAPL) listed 188 companies worldwide that provided components and services to assemble its iPhones, MacBooks, and other devices.  Of all those companies in Apple’s supply chain, about 80% of them are from China.  However, as the COVID-19 pandemic emerged and U.S. and Chinese tensions escalated in recent years, other countries in Asia, such as India and Vietnam, have emerged as popular new hubs for Apple suppliers and producers. 

Due to strengthening ties with the U.S. and a cheaper workforce, India and Vietnam have benefited from Apple’s move to diversify their operations away from China.  Many companies operating in China started looking for new manufacturing locations over a decade ago when China’s rapid growth began to push wages higher.  In 2012, there were no Apple suppliers in India.  However, the country now has 14 suppliers, and Apple’s new iPhone 15 will be the first model to ship directly from India just weeks after leaving factories in China.