As we all know, Chinese manufacturers play a significant role in Apple's supply chain. Excluding Taiwan Province, there are over 50 supply chain enterprises from mainland China (including Hong Kong and Macao), accounting for approximately 30% of the total.

If we include Taiwan-based enterprises, the number increases significantly, approaching 100, and accounting for roughly 50% of the total.

However, despite the large number of Chinese supply chain participants, many argue that Apple's Chinese suppliers mainly provide non-core products with low value and price, easily replaceable at any time.

But is this really the case? Not exactly. In fact, the Chinese supply chain also supplies many core components to Apple. From the teardown of the iPhone 16 Pro Max, it is evident that the Chinese supply chain accounts for approximately 33% of Apple's hardware costs, assembly, packaging, and other values, a significant contribution. Let's not underestimate Made in China.

According to the teardown analysis report provided by TD Cowen, the total material cost of manufacturing a 256GB iPhone 16 Pro Max, including components, assembly, packaging, and other expenses, is $485 (approximately RMB 3,400).

Within this cost, the Chinese supply chain contributes components such as screens, assemblies, batteries, cables, connectors, frames, etc., which account for over $160, or roughly 33% of the total $485 cost.

If we factor in some Taiwan-based supply chain components, such as TSMC's A18 chip manufacturing, the value would be even higher.

Clearly, the Chinese supply chain is not dispensable. However, it lags behind in chip provision, a fact that cannot be denied since the chip industry is not a strength of the Chinese supply chain.

Nonetheless, the value of the Chinese supply chain remains substantial. Don't dismiss these components as dispensable or easily replaceable. Any enterprise that enters Apple's supply chain is a top player globally. Do you really think they can be easily replaced? Apple certainly doesn't think so.

In conclusion, let's not underestimate Made in China. From the current perspective, not only Apple but also other mobile phone manufacturers are increasingly reliant on the Chinese supply chain due to its unparalleled advantages in efficiency, cost, and scale. This is the charm and strength of the Chinese supply chain that is difficult to replace.