1、A ME R I C A N ENTERPRISE INSTITUTE1Apples Supply Chain:Economic and Geopolitical ImplicationsJune 2025“Designed in California,assembled in China,”reads the text etched on the back of most iPhones.For over a decade,the iPhone has exemplified Chinas central role in producing the worlds electronics an

2、d solidi-fied the countrys status as the worlds leading manu-facturer.Today,electronics constitute around a quarter of Chinas exports;China counted for nearly a third of the entire worlds electronics exports.Applethe worlds most valuable manufacturer of consumer electronicsstands at the center of th

3、is manufactur-ing base,having played a major role in helping build Chinas capabilities.1Analysts who track Apples supply chain have demonstrated how Apple not only assembles many of its devices in China but also has over time sourced more components from China.Economist Yuqing Xing has calculated th

4、at iPhones manufactured in 2009 sourced nearly all their components from outside China with only the final assembly(costing$6.50 per iPhone)happening in China.2 In contrast,by 2018,many components were sourced from China,total-ing$104 per iPhone.Journalist Patrick McGee has reported how Apple spent

5、billions of dollars buying equipment to place in Chinese factories,enabling them to produce more components.3 Over the past few years,however,some analysts have questioned whether Chinas centrality to elec-tronics manufacturing might be eroding.First,many multinationals have expressed a desire to di

6、versify their supply chains with a“China plus one”manufac-turing footprint.Second,countries like India,Mexico,and Vietnam have sought to develop their own elec-tronics manufacturing ecosystems,winning business from some of the firms diversifying away from China.Yet questions remain about just how si