Apple bets on investments in Germany and India to become less dependent
We have written before about the fact that Apple wants to become less and less dependent on external parties. For instance, news recently surfaced that Apple is investing heavily in an iPhone factory in India. In addition, a chip lab in Munich, Germany, is getting a hefty €1bn investment from Apple. Read more about why Apple is doing this below.
Less dependent on China
By investing in its own chipmakers, screens and so on, Apple wants to reduce its dependence on China. Last year, for instance, Apple could not fully meet demand for new iPhones because factories in China were closed due to COVID-19 outbreaks. Strict regulations meant all work there was at a standstill. For this reason, Apple is increasingly working with different manufacturing partners outside China, for example in India and Vietnam.
One of Apple's larger suppliers (Foxconn) already had an iPhone factory in India, so it is now expanding it. Thus, Apple is investing about $700 million in this factory, reports Bloomberg. Apple would also like to make parts of iPhones, have iPhones assembled at the Indian factory and, if sources are not lying, even get involved in cars.
Apple's hefty investment in Munich, Germany
In addition, Apple is going to make an investment of up to €1 billion in its European Silicon Design Center in Munich, according to Apple's own website. The Design Center was announced and established by Apple about two years ago where an investment of around 1 billion euros was also involved at that time. So now an additional billion euros is added to this. With this additional investment, Apple plans to set up more R&D (research & development) centres in Munich. Whereas in Asia Apple invests mainly in production and manufacturing, in the West it invests more in innovation, technology and research.
Apple's own chips
In recent years, the company has also been putting a lot of money and manpower into manufacturing its own chips, which now seems to be paying off. Almost all Apple devices now come with their own Apple chips. These chips are usually a lot faster and more fuel-efficient than those from competitors, and it is arguable that Apple's profit margin is also a lot higher than with external chips. Recently, Apple chief Tim Cook said, "our engineers in Germany are at the forefront when it comes to innovation and coming up with new technology that is at the core of our products". He also added that Apple has been based in Munich for more than 40 years and they have never been more excited about what the future has to offer. In any case, we are also very curious to see what the future holds for Apple!
