In the third quarter of 2024, the turnover of Chinese electric car manufacturer, BYD, reached $28 billion. This is better than its great American rival, Tesla, which recorded revenues of $25 billion. And this is explained, in particular, by an activity carried out upstream of the company's main operations.
Ties with Apple
Indeed, BYD works closely with Apple, for whom it assembles 30% of iPads. The two companies have been associated since 2009, maintaining a relationship that has strengthened over the years. The BYD Electronic branch, which specializes in subcontracting, has been mass producing the Apple brand's tablets since 2019. It is now also responsible for sensitive tasks on behalf of the American giant, such as titanium parts. of the latest iPhone Pro models.
Apple CEO Tim Cook met BYD boss Wang Chuanfu during a visit to Shanghai last May. At the same time, he assured that the company was among Apple's suppliers who “ push the limits of what is possible “. More recently, Cook recalled that his company was indebted to its Chinese partners. “ We couldn't do what we do without them he told the country's state media in November.
BYD assembles smartphones from major brands
But Apple is far from the only smartphone manufacturer BYD works for. Because electric car and smartphone manufacturing have similaritiesboth in terms of batteries, chips and software.
Xiaomi is also one of its customers. BYD not only assembles some of its smartphones, but also provides it with certain technologies for its electric vehicles. Same story for another Chinese mobile giant, Huawei. Furthermore, the manufacturer is also involved in the assembly of components related to the hinges of Samsung's foldable phones. An activity that is highly profitable for him.
An activity threatened by Trump?
On the Apple side, this link allows it to diversify its supply chain outside of China, because BYD also has factories in other Asian countries; the Cupertino company recently set itself the mission of depending less on the Middle Kingdom, by investing in Vietnam and India. However, its dependence on certain manufacturers based in the country, like Luxshare, is growing.
This is all the more problematic in the current geopolitical context. Donald Trump, who will take over the White House next January, has the ambition to reduce Chinese importswhich risks posing logistical and economic challenges for Apple.
During his previous mandate, Tim Cook managed to convince the Republican to exempt electronic products, including the iPhone, from customs duties on products manufactured in China. This time, it is not certain that the scales will tip in his favor…
- The electric car manufacturer BYD assembles some Apple iPads, as well as devices from Huawei, Xiaomi and Samsung.
- Its subcontracting business is very profitable, and has allowed it to surpass Tesla in terms of revenue.
- However, its privileged relationship with Apple is threatened by the presidency of Donald Trump.
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