The demand for Apple’s latest iPhone models has played a significant part in boosting Taiwan’s economy amid heavy offshore competition since the country is still heavily reliant on technology manufacturing contracts.
Some of Apple’s products such as the iPhone are manufactured in Taiwan. Apple is one of the few companies that outsource production to the Asian country. It is one of the most attractive places for manufacturers because the country offers a lot of incentives to attract foreign companies. The country relies heavily on such contracts to keep its economy going through the availability of jobs and revenue circulation.
Unfortunately, there has been a lot of competition from other countries offering better enticements and this has led to some concerns about Taiwan’s economy. The presence of manufacturing facilities and contracts for the manufacture of tech parts for Apple products such as the iPhone 8 and the iPhone X has however been quite pivotal towards keeping the country’s tech sector going.
Apple reported that iPhone sales in the third quarter of 2017 have increased by 5.7 percent compared to iPhone sales in Q3 of 2016. This is due to the increasing demand for the products, which has in turn provided business to the tech firms producing iPhone parts in Taiwan.
“Orders for older iPhones as well as the iPhone X, which is seen taking off next year, have solidified orders for parts supplied by tech firms in Taiwan,” analysts commented.
Tech experts revealed that Apple has been sourcing handset displays, camera modules, chip production and also the final assembly from Taiwan. One of the major Taiwanese companies that provide such services is Foxconn Technology. Apple also gets the A11 processor used in the iPhone 8 from a firm known as Taiwan Semiconductor Manufacturing Co.
John Brebeck, the managing director of investment consultancy firm Peace Field pointed out that key components of iPhone devices are made in Taiwan and this contributes greatly to the country’s GDP. Despite this, the country’s officials are worried that China is well positioned to steal a huge chunk of Taiwan’s market share. This is because China has higher production scales and lower operating costs.