Apple (AAPL) Increases Investment in China's Advanced Manufacturing Capabilities

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Oct 24, 2024
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Apple's Chief Operating Officer, Jeff Williams, recently emphasized the significance of China as a pivotal component of Apple's supply chain, affirming the company's commitment to expanding its investment in the region. During his visit to production bases and automation equipment suppliers in Suzhou, Jiangsu, and Changsha, Hunan, Williams highlighted China's sophisticated production lines and advanced automation capabilities as key assets for Apple.

Apple has invested approximately $20 billion over the past five years into smart and green manufacturing in China. Out of Apple's 200 primary suppliers, over 80% have established factories in China. Lens Technology, a long-term partner of Apple for 18 years, is one of these critical suppliers, producing an array of products including phones, smartwatches, and computers. Since 2020, Apple's expenditure with Lens Technology has approximately doubled. The company employs 130,000 people, with 70% of its production lines automated.

Williams, who has been instrumental in Apple's expansion into China since 1998, expressed admiration for China's technological and automation advancements, which support the production of innovative Apple products.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.