Apple’s rise in China offers stark lessons about enterprise and supplier development. By investing billions into infrastructure, logistics and supplier ecosystems, the company did not just outsource production — it embedded itself deeply into China’s industrial framework. Apple supported entire supply chains, from railways and power systems to tooling and training, ensuring that its suppliers could deliver at unmatched scale and quality.
By Dan Blumenthal & Ian Jones – The Washington Free Beacon
This approach also functioned as a massive enterprise development initiative. Suppliers benefited from Apple’s “squeeze” model, which demanded low margins but exposed them to world-class standards, design integration, and skills transfer. Many suppliers leveraged this know-how to diversify and win business beyond Apple. By embedding engineers directly into supplier operations, Apple accelerated the diffusion of advanced processes across China’s manufacturing base.
The results illustrate the power — and risks — of supplier development. Apple’s investments helped transform Chinese enterprises into globally competitive firms, enabling companies like Huawei and BYD to thrive with expertise gained from Apple-driven ecosystems. Supplier development thus became a double-edged sword: it ensured Apple’s success, but also created competitors and cemented China’s industrial dominance.
For South Africa, the lesson is clear. Enterprise and supplier development cannot just be about compliance or short-term procurement. Done strategically, with real investment in skills, infrastructure and integration, it can uplift local industries and create sustainable ecosystems. The challenge is to balance growth opportunities for suppliers with long-term national interests, ensuring development strategies contribute to competitiveness without eroding sovereignty.
