Apple's intention to use Chinese chips shows that it is realizing that the Chinese market is very important

Apple's intention to use Chinese memory chips has aroused the attention of all parties. This move actually reflects Apple's recognition that the Chinese market is very important to it now, and markets such as India and Vietnam cannot be compared with the Chinese market. Therefore, Apple's move may be to show Good Chinese consumers. After Apple reported that it might use memory chips made in China, relevant parties expressed concern, and then Apple said that iPhones using Chinese memory chips would only be sold in the Chinese market, which is still under evaluation, which means that Apple is still Weighing the pros and cons, but undoubtedly this has highlighted the impact of Apple's thinking about the Chinese market. Apple did this because the Chinese market contributed nearly $70 billion in revenue, second only to the United States and Europe, and the growth rate of revenue contributed by the Chinese market once exceeded that of the United States and Europe, providing impetus for its performance growth, highlighting The Chinese market still has great potential. In addition, Apple is re-recognizing Chinese manufacturing. Previously, Apple tried to transfer iPhone manufacturing to India and Vietnam, and it is currently in progress. However, the problems encountered have highlighted that these two places are completely unable to replace Chinese manufacturing. Their manufacturing quality is similar to that of Chinese manufacturing. The gap is too far, the gap is too large, the quality is poor and other issues make Apple worry. Earlier, the Shanghai Pegatron factory stopped production for some reason, and India, Vietnam and other places could not accept a single production capacity. The final order was transferred to Zhengzhou Foxconn, and Zhengzhou Foxconn also successfully supported Apple's production capacity, which further made Apple soberly aware of India. , there is a huge gap between the manufacturing industry in Vietnam and other places and China's manufacturing. This result is due to China's efficient industrial chain and China's leading infrastructure. China's railways (including high-speed railways) and expressways have covered the whole country, especially the two major manufacturing cities, Suzhou and Dongguan, which are covered with cobweb-like expressways. Enterprises in various industrial chains are closely linked. The fact that Zhengzhou Foxconn can accept almost all of the production capacity of the Shanghai Pegatron factory lies in the efficient industrial chain and logistics cooperation. The industrial chain enterprises can send relevant accessories to the Zhengzhou Foxconn factory on time and on time, ensuring the efficient operation of Foxconn production lines; this kind of Efficient operation is also reflected in Apple's annual production capacity peak in Q4. The production capacity demand in Q4 is 30% to 40% higher than the other three quarters. This feature of Chinese manufacturing is exactly what Apple needs. The strength of China’s industrial chain has also given Apple a new understanding. The data for 2021 shows that 51 of Apple’s 200 core suppliers are mainland Chinese companies, and mainland China has surpassed Taiwan, China to become Apple’s largest supplier. The contribution of iPhone value has reached 25%. Chinese suppliers also help Apple reduce the hardware cost of the iPhone. As Apple has lowered its OEM prices year after year, Quanta and Compal are reluctant to continue OEM for Apple. Recently, Luxshare Precision has recently established a large-scale factory in Kunming to accept the iPhone OEM to force Foxconn to reduce OEM prices; BOE’s supply of OLED panels to Apple effectively forces Samsung and LGD to reduce OLED panel prices. This time Apple plans to introduce Chinese memory chips to force South Korean manufacturers Samsung and SK. Hynix lowers the price of memory chips. It can be seen that the Chinese market not only provides a huge amount of revenue for Apple, but also that Chinese manufacturing continues to help Apple to ensure production capacity and reduce the hardware cost of the iPhone. In this case, of course, Apple needs to strengthen cooperation with Chinese manufacturing, which can reduce costs and also reduce costs. With so many benefits that consumers in mainland China like to increase iPhone sales, of course Apple will pay attention to the Chinese market.