What’s In Your Apple iPhone

CNBC
18 Dec 201806:50

Summary

TLDRApple's iPhone design originates in Cupertino but relies on a global supply chain for components. The A12 chip exemplifies this complexity, with design in California, fabrication in Taiwan, and assembly in China or Taiwan. iPhones incorporate elements from up to 70 of the 80+ elements in the periodic table, sourced worldwide. Apple tracks and audits 'conflict minerals' like tin and tantalum to ensure ethical sourcing. The company also prioritizes environmental responsibility, with initiatives like robotic disassemblers named Daisy that recover valuable materials from old iPhones, and a commitment to use only recycled materials in the future.

Takeaways

  • 📍 Apple's iPhone design originates in Cupertino, California, but relies on a global supply chain for components.
  • 🌐 The supply chain is complex, involving suppliers in 43 countries across 6 continents.
  • 🔍 Tracing the origin of a single component, like the A12 chip, is challenging due to outsourcing to various manufacturers.
  • 🏢 Apple outsources chip fabrication to TSMC in Taiwan, with final tests possibly done by Amkor in the Philippines.
  • 📱 The A12 chip is assembled into iPhones by Foxconn in China or Pegatron in Taiwan.
  • 📊 Apple publishes a list of suppliers annually but does not detail which components come from which manufacturers.
  • 🔬 Tear downs by firms like iFixit and Tech Insights reveal the variety of components used in iPhones, such as SDRAM from multiple sources.
  • 🌏 Smartphones use 60-70 elements from the periodic table, with raw materials sourced from nearly every continent.
  • ⚖️ Apple closely tracks and audits the sourcing of conflict minerals like Tin, Tungsten, Gold, and Tantalum.
  • 🌱 The company is committed to environmental responsibility, with programs like robotic phone dissectors named Daisy that recycle materials from iPhones.
  • 🔄 Apple aims to use 100% recycled materials in its products, already using recycled Tin in the logic boards of new iPhones.

Q & A

  • Where does Apple's iPhone design process begin?

    -The design of every new iPhone starts at Apple's headquarters in Cupertino, California.

  • How does Apple rely on outside manufacturers for its devices?

    -Apple largely depends on outside manufacturers to produce ready-made components for its devices, making its supply chain complex and far-reaching.

  • In how many countries does Apple work with suppliers?

    -Apple works with suppliers in 43 countries across 6 continents.

  • What is an example of a complex component's origin in an iPhone?

    -The A12 chip in iPhones is designed by Apple, fabricated by TSMC in Taiwan, and assembled into the iPhone by Foxconn in China or Pegatron in Taiwan.

  • Why is tracing the origin of a single component in an iPhone tricky?

    -Tracing the origin of a single component is tricky because Apple does not specify which components come from which manufacturers, and they often use more than one supplier for a part on the same model.

  • What is one way to get a glimpse into Apple's supply chain?

    -One way to get a glimpse into Apple's supply chain is through tear downs, such as those conducted by repair firm iFixit and Tech Insights.

  • How many elements from the periodic table are used in the making of a typical smartphone?

    -A typical smartphone uses between 60 and 70 elements from the periodic table.

  • Which minerals does Apple closely track in its supply chain?

    -Apple closely tracks Tin, Tungsten, Gold, and Tantalum, which are known as conflict minerals.

  • What is the significance of the Dodd-Frank Act for Apple's supply chain?

    -The Dodd-Frank Act requires all companies publicly traded in the U.S. to report the source of their conflict minerals, which led Apple to map its supply chain for certain minerals and ensure humane extraction through third-party audits.

  • What are rare earth metals and why are they important for iPhones?

    -Rare earth metals are a group of 17 chemically similar elements known for their magnetic and conductive properties. They are important for iPhones as they are used in the production of phone screens, magnets, and vibration components.

  • What is Apple's stance on using recycled materials in its products?

    -Apple has committed to using 100% recycled Tin in the logic boards of its newest iPhones and aims to one day use only recycled materials in its products, reducing its need to mine new materials.

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Related Tags
iPhone DesignSupply ChainGlobal SourcingRare EarthsConflict MineralsEnvironmental ImpactApple InnovationSustainabilityTech InsightsMaterial Sourcing