Chinese companies are increasingly designing sophisticated components for Apple’s iPhones and iPads instead of just supplying low-cost labour for assembling the high-tech devices.
The shift is an indication of how Chinese companies’ rising technological capabilities are threatening the Taiwanese, Japanese and South Korean companies that dominate the global electronics supply chain.
The number of Chinese companies supplying Apple with components such as batteries has doubled from eight in 2011 to 16 this year, according to Apple’s published lists of suppliers and research from the brokerage CLSA.
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