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October 9, 2013

Chinese companies move into supply chain for Apple components

Sarah Mishkin:

Chinese companies are increasingly designing sophisticated components for Apple's iPhones and iPads instead of just supplying low-cost labour for assembling the high-tech devices.

The shift is an indication of how Chinese companies' rising technological capabilities are threatening the Taiwanese, Japanese and South Korean companies that now dominate the global electronics supply chain.

The number of Chinese companies supplying Apple with components such as batteries has more than doubled from eight in 2011 to 16 this year, according to Apple's published lists of suppliers and research from the brokerage CLSA.

"There are very, very serious companies emerging in China" that are beginning to see the pay-off of many years of rapid growth in their spending on research, said Nicolas Baratte, regional head of technology research for CLSA.

Posted by Jim Zellmer at October 9, 2013 12:48 AM
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