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Tuesday, May 03, 2011

CLARIFICATION

All Apple products are designed in california and assembled in china ... What does it mean exactley ?

It means precisely what it says. Apple products are conceptualized, designed, tested and marketed under the brand name Apple. China lacks the technical know-how to design smart electronic gadgets but since the labor cost is dirt cheap, Apple outsources the assembly of the components to make the final product to a Taiwanese company Foxconn that has operations in China.

Remember that China lacks the technical know-how to even manufacture the components that are put into Apple products. These components come from different sources in Japan, Korea, Europe and the USA. All these suppliers send their components to the Foxconn facility in China so that the final Apple product can be assembled.

For example here's the typical manufacturing of iPhone:
 
iPhone Primary Contractors  - a partial list
Software and design AppleUSA
Assembly Foxconn?, Quanta, UnknownTaiwan
TFT-LCD Screen Sanyo Epson, Sharp, TMDJapan
Video processor chip SamsungKorea
Touch screen overlay BaldaGermany
Bluetooth chip Cambridge Silicon RadioUK
Chip manufactureTSMC, UMCTaiwan
Baseband IC Infineon TechnologyGermany
WIFI Chip  MarvellUSA
Touch screen control chip BroadcomUSA
CMOS chip MicronUSA
NOR Flash ICsIntel, SSTUSA
Display Driver chip National Semi, NovatekUS, TW
Case, Mechanical parts Catcher, Foxconn TechTaiwan
Camera lens Largan PrecisionTaiwan
Camera module Altus-Tech, Primax, Lite On Taiwan
Battery Charger Delta Electronics Taiwan
Timing Crystal TXCTaiwan
Passive components CyntecTaiwan
Connector and cables Cheng Uei, EnteryTaiwan


As you can see, China has no role other than providing cheap labor who would assemble the components coming from myriad sources.

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