Apple has just announced a list of its supply partners for the fiscal year 2023 (which ended September 2023). The Apple supplier list represents 98 per cent of Apple's direct spend on materials, manufacturing, and assembly of its products worldwide for fiscal year 2023.

The report reveals that the majority of its suppliers have factories in Southeast Asia, India, and South Asia.

In Vietnam, Apple added eight new partners to bring the total to 35, ranking first in Southeast Asia. Vietnam ranks fourth in Apple's global supplier list, trailing behind China (158), Taiwan (49), and Japan (44), and followed by the United States (26), and South Korea (34). Last year, Vietnam came second in the region behind Thailand and seventh in the world.

Over the past eight years, Vietnam has experienced a sharp increase in the number of Apple suppliers. The country is home to major Apple suppliers like Foxconn, Luxshare, Samsung, Intel, and LG.

China took the lead in Apple's supplier list and contributed 42 per cent to Apple's annual production. Chinese suppliers offer high cost efficiency and a low turn-around time for production, despite the recent impact of the US-China trade war.

In Southeast Asia, Apple suppliers are also present in Thailand (24), Singapore (23), Malaysia (19), and the Philippines (17). Indonesia, where CEO Tim Cook plans a new manufacturing facility, has one supplier.

Vietnam currently has large factories specialising in assembling Apple devices such as AirPods, iPads, and Apple Watches. Analysts estimate that Vietnam will contribute 20 per cent of all iPad and Apple Watch productions, 5 per cent of MacBooks, and 65 per cent of AirPods by 2025.

Prime Minister Pham Minh Chinh met with Apple CEO Tim Cook last week during the CEO's two-day visit to Vietnam. Cook suggested promoting cooperation and high-quality investments. He also made commitments to increasing spending on Vietnam-based suppliers, along with support for innovation.

Apple has provided jobs for about 200,000 workers through its supply chain and the iOS app economy. The US tech titan has so far invested VND400 trillion ($15.8 billion) in the country through its local supply chain partners since 2019.

Source: VIR

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