Apple soon going to get chips manufactured from Chinese firms
Apple has been developing its own chips for quite some time and but the rising costs in last few years has finally made it give away the manufacturing to China. Currently Apple is in talks with a Chinese firm named Yangtze Memory Technologies to buy storage chips as per report from Nikkei.This would also be marked as the first when Apple is indulging in buying chips from the Chinese manufacturers. It is worth noting that these chips will be used only for the new iPhone models as well as other products which will be sold exclusively in the Chinese market only.
Apple performance in Chinese market
As per the Nikkei report Apple has a quite profitable and influential share of the Chinese market. In 2016 Apple market share went down to 9.6 % from 13.6% which was attributed to the rise of the local players like Oppo, Vivo and Huawei who had brought high end specifications to the budget segment.Things weren’t good just a couple of years for Apple in the China market as it market grew just by 9%. Apple iPhone 6 and 6S variants of iPhone were the best performing device from the Apple so far while iPhone 7 simply failed to capture the attention of the users. But the launch of the iPhone X has simply turned the tide in favour of Apple by bringing back the high end innovation right into the play.
Apple relies on China for manufacturing
Apple has boosted its growth in terms of unit sales with each passing thanks to the efficient manufacturing capabilities of its Chinese partners. It can be easily said that China has played a vital and crucial role in the rise of the iPhone is the last decades due to massive on time production capabilities.Apple supply chain is quite complex as it brings together different for its iPhone specifically from different parts of the world namely France, Germany, Japan, Singapore, South Korea, Italy, Netherlands and others. Apple does stick the made in China label in all of its devices as the majority of the parts are sourced locally in China while some of the part is outsourced to Taiwan as well.
This year round Apple has relied on the China to produce the iPhone 8 and iPhone X devices along with the others. Apple’s iPhone X also became the first flagship device from Apple to break the one grand dollar price tag barrier which resulted lower than the expected sales in later months but it didn’t put any dent to the overall revenue of the firm.
The decision of sourcing storage chips seems to be a good move on part of the Apple to save more on the chips so it can keep offering the next batch of devices without causing a steep increase in the sale price. Both Apple and Yangtze Memory have refrained to provide any information or comment on this development as reported by the Nikkei.
