It is reported that BYD has been added to the list of iPhone 16's contract manufacturers, marking BYD's first order from Apple. Additionally, ten domestic supply chain companies have become Apple suppliers this year, as these Chinese industrial chain enterprises are all vying for Apple's attention because only Apple can offer them greater profits.

Taking the well-known O-Film as an example, after being expelled from Apple's supply chain in the first half of that year, its revenue dropped by 40%, and net profit plunged by 90%. This indicates that Apple contributed approximately 40% of O-Film's revenue and up to 90% of its profit, highlighting the significant profits Apple brings to O-Film.

In 2023, domestic mobile phone brands claimed to have brought substantial revenue to O-Film, saving the company. However, O-Film's revenue for 2023 was 16.863 billion yuan, with a net profit of 76.9 million yuan. In contrast, during its peak period, O-Film's revenue exceeded 50 billion yuan, with a net profit of 500 million yuan. This comparison reveals that the so-called "saving" of O-Film pales in comparison to the contribution of Apple.

The importance of Apple is further evidenced by the performance of another panel company. After becoming an Apple supplier in 2020, this panel company achieved annual profits almost equivalent to the sum of its profits from the previous ten years. This underscores the substantial profits Apple offers upon becoming its supplier.

These industrial chain companies' transformation into Apple suppliers has fueled significant growth in their performance. Not only do they enjoy more lucrative profits from Apple, but they also gain more bargaining power. Apple's endorsement attests to their product quality and standards, while having Apple as a major customer balances their need to compete fiercely for domestic mobile phone orders at low prices.

Precisely because of the numerous benefits derived from becoming an Apple supplier, numerous Chinese industrial chain companies are eagerly seeking this status. The aforementioned panel company, after mass-producing OLED panels in 2017, was rumored to become an Apple supplier every year until it finally achieved this goal in 2020.

This year's list of Apple suppliers includes ten new Chinese industrial chain companies, exciting them as opportunities to earn in the supply chain arise. Apple's significant increase in Chinese suppliers this year stems from last year's rumors of reducing the proportion of Chinese manufacturing, which led to a decline in iPhone 15 sales in the Chinese market. In response, Apple CEO Tim Cook made an emergency visit to China and met with executives from BYD, Luxshare Precision, Lens Technology, among others, expressing a commitment to strengthening cooperation with Chinese manufacturing.

Apple's expansion of Chinese suppliers is also due to its struggles with manufacturing in India. Last year, Apple awarded 12% of its orders to Foxconn, which has factories in India. However, the iPhone 15 produced in India faced quality issues and excessive E. coli levels, leading to rejections by European and Chinese consumers. Consequently, Apple had to once again turn to Chinese manufacturing.

Yet, becoming an Apple supplier is no easy feat. Apple's technical requirements are stringent, necessitating high-quality components. Furthermore, ongoing investment in advanced technology research and development is mandatory, posing significant risks. The sapphire glass supplier GTAT, lured by Apple, took out large loans for R&D, but failed to meet Apple's technical standards, ultimately leading to its bankruptcy.

Given the potential risks associated with becoming an Apple supplier, CCTV has warned that supply chain companies should not overly rely on Apple. While supply chain companies rarely comment on Apple as a customer, their active pursuit of becoming Apple suppliers suggests that they believe Apple offers them the greatest benefits.