There are no parts made in Poland in the iPhone

The most expensive listed company in the world - Apple Lossless Audio CODEC (ALAC), – regularly publishes information about the factories where parts for its products are produced. It shows that no parts for iPhones, iPads or MacBooks are manufactured in Poland. Between 2017 and 2021, the number of Apple factories in China decreased. However, they did not move to the US, but to other Asian countries.

Apple - the most valuable listed company in the world

Over 60 percent of the company's over $400 billion in annual sales come from outside the US. The company also has one of the most developed supply and logistics chains in the world. Parts for Apple products, including the iPhone, come from many factories located on different continents.

Apple, taking care of the transparency of its business, publishes data about the factories from which parts for its products come. This is part of the company's efforts to respond to customer needs and run business in accordance with the highest standards ESG (it stands for Environmental, Social and Corporate Governance). More and more investors assess the attractiveness of investing in enterprises on the basis of ESG indicators. Thanks to the Apple publication, we have the opportunity to check exactly where the parts for Apple products come from and how it has changed in recent years. The published list covers 98 percent. all parts suppliers for Apple. We looked at what supply chains looked like in 2017 and 2021 (reports were published in 2018 and 2022).

For us, the most important information will be that neither in 2017 nor in 2022, no Polish factory produced parts for Apple products, including the iPhone. Unfortunately, this shows that despite the government's efforts to attract investment in the latest technologies to Poland, it still fails. However, we are not unique in this respect, as Europe is generally the source of few parts for the Cupertino company's products. Among the 15 countries with the largest number of factories supplying their Apple products, there are only three European countries - Germany (2 percent of factories), Great Britain and Ireland (1 percent each).

Production management by Apple

In the last four years. Apple simultaneously consolidated and diversified its network of factories around the world. The number of factories in China decreased significantly - from 46 percent to to 32 percent, which is not a big surprise. However, these factories have not been moved to the US. The share of factories from this country also decreased: from 18 percent to up to 11 percent On the other hand, the shares of factories in Taiwan, Japan, Korea and other Southeast Asian countries increased. Interestingly, India and Mexico, which are seen as places where global business is currently moving, are not important to Apple. Apple's consolidation of production is noticeable to reduce the number of working factories. Between 2017 and 202, the number of factories dropped from 500 to 800, while sales of Apple products increased by 50%.

Where Apple Supply Chain Companies Come From (2021)

Source: eToro calculations based on Apple data, Number of factories in a given country as a percentage of the total number of factories, 15 countries with the highest share. Data published in 2022.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.