Summarize

Simplifying... Inshort

BYD, Tesla's Chinese competitor, has expanded its tech portfolio by assembling iPads for Apple, a partnership dating back to 2009.
This move aligns with the growing trend in China of intertwining car and phone industries.
BYD's impressive Q3 revenue of $28 billion, surpassing Tesla's $25 billion, was largely driven by its electronics manufacturing arm, hinting at a promising future in both EV and tech sectors.

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The company has deployed over 10,000 engineers for the job

Tesla's Chinese rival BYD now assembles iPads for Apple

By Dwaipayan Roy

Dec 03, 2024

03:18 pm

What's the story

BYD, China's top electric vehicle (EV) maker and rival to Elon Musk-owned Tesla, has expanded its portfolio by venturing into the assembly of Apple's iPads. As The Wall Street Journal reports, BYD now assembles more than 30% of Apple's iPads. The company has deployed over 10,000 engineers and another 100,000 workers exclusively for the job.

Diversification strategy

Transition into electronics: A strategic move

The move of BYD, an EV maker, into assembling iPads may appear strange. But, the two industries have a lot in common. EVs and tablets both depend on software, batteries, and chips. As the Wall Street Journal notes, in China, cars and phones are becoming more and more intertwined. This is visible in Xiaomi's recent foray into sedan manufacturing and BYD's role in assembling both phones and car tech.

Tech partnerships

BYD's collaboration with tech giants

Along with Apple, BYD also works with Huawei on its phones and EV software. The company's electronics manufacturing work is not limited to Apple products, as it also provides hinge-related components for some of Samsung's foldable phones. These partnerships highlight BYD's versatility and adaptability in the tech industry.

Business growth

BYD's long-standing relationship with Apple

BYD's association with Apple goes back to 2009 when it started processing components for the tech giant. Gradually, BYD gained Apple's trust and now supplies structural components such as metal, glass, ceramics, and sapphire along with assembly services. This long-standing partnership has contributed significantly to BYD's business growth and diversification.

Future prospects

Impressive financial performance and expansion plans

In the third quarter, BYD's revenue of around $28 billion exceeded Tesla's $25 billion. This was primarily due to BYD Electronics, the company's contract-manufacturing arm which brought in around $6 billion in revenue during the quarter. Moving forward, BYD plans to develop AI-powered robots with NVIDIA for factory use, hinting at a bright future for the company in both the EV and tech sectors.