Do electronics companies make all the parts for their products themselves?

Or do they outsource?

My friend said that all electronics companies made every part of their products themselves in their own factories, but my other friend says that a lot of electronics companies outsource the making of the parts for their products to other, smaller factories.

Which is it? Do electronics companies outsource ever? My friends are fighting about it right now lol!!

Thanks. :)

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  • 7 years ago
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    Nearly all of them do, including Apple.

    Most Apple products are produced by Foxconn in China. Perhaps you recall reading articles about how Foxconn mistreats their employees, and Apple is under pressure to improve working conditions for them.

    Following the launch of the smartphone, The Wall Street Journal reported an executive saying the iPhone 5 is "the most difficult device that Foxconn has ever assembled. To make it light and thin, the design is very complicated."

    According to a Reuters report, iPhones assembler Hon Hai Precision Industry, the entity of the parent Foxconn Technology Group, was finding it hard to cope with the massive demand for iPhone 5 units since the Sept. 21 launch.

    Analysts have earlier reported that Foxconn has expanded production of iPhone 5 to its other unit, Foxconn International Holdings (FIH), which typically makes non-Apple products, to address the shortfall. However, Foxconn Chairman Terry Gou declined to comment to the Wall Street Journal on brokerage reports.

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