Apple’s manufacturing system in China

Part I. Introduction
1. Background
A firm needs strict management in all aspects of the business in order to survive
and grow. The production system, however, likely plays the most significant
impact because it affects each enterprise's reputation, power, and stability. How
come? Manufacturing plays a significant role in the success of a business. This is
because it involves the creation of goods and products that are used by consumers
every day. Manufacturing is essential in ensuring that quality control is maintained.
When a company manufactures its products, it has complete control over the
quality of the goods produced. This helps the company to deliver high-quality
products to the market, which can help them build a loyal customer base.
Understanding this, Apple which a developing company, can be referred to as
having worldwide influence. Apple has spectacularly outperformed Nokia and a
numerous of other technological companies because of its in-depth product
understanding and focus on production methods. And as people is aware, currently
the biggest manufacturing market of apple is located in China. So what predestined
relationship made Apple choose China as the main production place for its
business? Chinese factories are much larger and more flexible than American
factories. Moreover, manufacturing plants can easily concentrate a large number of
workers as soon as they are needed.
For more than 15 years, Apple has consistently sent its top product designers and
production design engineers to China, placing them in supplier partner facilities for
months on end. These Apple employees play an integral role in co-designing new
manufacturing processes, overseeing the tiniest details of the manufacturing
process until everything goes live, and keeping a close eye on the results. close
suppliers to ensure regulatory compliance.
More than 95% of iPhones, AirPods, Macs, and iPads are made in China and hold
a key position in Apple's business, accounting for more than a fifth of Apple's
revenue. In 2022, China took the lead when there were 121 Apple supply partners,
accounting for 44-47% of the global total. China owns 2,360 manufacturing plants
nationwide, accounting for 19.3% of the total 12,248 factories. The above figures
show that China is the world's leading iPhone factory.
When it comes to finding suppliers, Apple always follows a very strict process. As
five people who have worked for Apple in China told the Financial Times, usually
an engineer from California will meet the CEO of a Chinese component supplier.
This person then asked a series of complex technical questions to the Chinese side.
The Apple engineer would then be taken to the next managers and repeated the
same action until they were deep down the hierarchy, even ready to go to the
basement where there were other managers. the necessary code that answers the
question from Apple. After hours of interviewing, an Apple engineer will get the
partner to commit to building a custom, high-volume division and effectively
controlling the supplier's R&D development roadmap.
In addition to the low cost, what Foxconn offers, with a low profit margin of less
than 3%, is an abundant and organized labor source to increase production
whenever necessary while still being able to shrink so that Apple cannot incur
unnecessary costs. Besides, China is also a huge source of skilled labor. When
explaining why Apple can't produce on a large scale in the US, Tim Cook once
told an audience that if every manufacturer in the US were invited to the
auditorium where he was speaking, they would not be able to fill it. room.
Meanwhile, if in China, Apple CEO said that the number of attendees "will need a
few cities to fill the tool and die manufacturers".
2. Rationale & Purposes
- How Apple's Manufacturing System Really Connects to China
- The difficulties and risks that Apple encounters when too dependent on
China
+ However, this phenomenal success story also created Apple's biggest flaw
to this day, which is its dependence on a single country.
+ In Covid-19 period
3. Methodology
 Hơn 95% iPhone, AirPods, Mac và iPad được sản xuất tại Trung Quốc và sở
hữu một vị thế quan trọng trong hoạt động kinh doanh của Apple khi chiếm
hơn 1/5 doanh thu của Apple

Tài sản Trung Quốc của Apple được xây dựng trong nửa đầu thập kỷ qua, khi
doanh thu tại nước này tăng từ 2,8 tỷ USD năm 2010 lên 59 tỷ USD năm 2015.
Doanh số đã giảm trong những năm tiếp theo (xem biểu đồ), nhưng vẫn đủ khiến
thị trường Trung Quốc chiếm 18% tổng doanh thu của Apple trong 10 năm qua.
Thị phần của Apple tại Trung Quốc
Part II. Literature review
1. About Apple
- Apple hay Apple Inc. là một tập đoàn công nghệ của Mỹ có trụ sở chính đặt
tại Cupertino, California. Doanh nghiệp được thành lập vào ngày 01/04/1976 dưới
tên Apple Computer, Inc., sau đó mới được đổi tên thành Apple Inc. vào đầu năm
2007. Sản phẩm đầu tiên của công ty là chiếc Apple I có giá trị 666.66 USD. Đó là
một bộ mạch chủ cùng bộ xử lý và bộ nhớ. Cho đến ngày nay công ty đã có thêm
rất nhiều sản phẩm công nghệ mới, hiện đại, đáp ứng nhu cầu sử dụng của người
tiêu dùng.

2. Manufacturing market in China

3. Apple decide to place the manufacturing system in China
- Chi phí nhân công thấp
- Nguồn nhân lực/ nhà máy dồi dào
Part III. Analysis
1. Vị thế của Apple tại thị trường Trung Quốc
- Apple đánh bại Huawei, thống trị thị trường Trung Quốc
2. Risks and difficulties of Apple when choosing to place the production
system in China
- Các chuyên gia cho rằng Táo khuyết chỉ tập trung dây chuyền sản xuất của
mình vào một quốc gia duy nhất. Hậu quả là hãng công nghệ đã lao đao
không ít khi sản lượng của các nhà máy sản xuất iPhone giảm sút do ảnh
hưởng của đại dịch Covid-19.
Part IV. Conclusion and Recomendation
References