Apple has been trying to reduce its dependence on China as much as possible. While the company’s contract manufacturers are expanding production in other countries, such as India, the tech giant’s list of suppliers is also changing.
In a recent teardown of the newly launched iPhone 12 Pro, it is found that components made by South Korean companies account for almost 27 percent of the phone’s value. This indicates a significant increase of 9.1 percent points compared to last year.
It’s noteworthy that the share of South Korean-made components is more than the total combined share of parts made in the United States. The report reveals that the cost of a high-end iPhone 12 Pro is $406 and components from South Korea and the United States account for 26.8 percent and 21.9 percent by value, respectively.
This is mainly because of the company’s decision to adopt OLED screen panels for the new iPhone models, which are supplied by Samsung Display and LG Display, both from South Korea and leaders in the category.
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Apart from the OLED panels, Samsung is also supplying memory chips to Apple for the iPhone 12 models. Another key supplier for the company is Japan-based Sony that provides three camera lenses, priced around $5.4 or $7.4 each.
Coming to the battery, it is reported that the phone’s battery capacity has been cut by 10 percent, likely to make space for additional parts as the iPhone now comes with support for 5G connectivity. The battery cells are supplied by Amperex Technology Ltd. (ATL), which is a Hong Kong-based subsidiary of Japan’s TDK.
Chinese-made components accounted for less than 5 percent of the total by value. This could be because of the rising trade tensions amid the US-China trade war. Because of that, Apple is trying to move out production to other regions.
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