Supplier response to Apple’s friendshoring

Abstract

Friendshoring represents a strategic response by multinational companies that are shifting their overseas supply chains to politically aligned nations in light of escalating geopolitical tensions. This transition compels suppliers to embrace the friendshoring strategies of their clients, which may result in a compromise on efficiency. Our in-depth case study of Goertek, a Chinese electroacoustic supplier for Apple Inc., illustrates its significant relocation of production lines from China to Vietnam in response to Apple’s friendshoring pressures. This research underscores the critical role of balancing supply chain efficiency and security, deepening our understanding of what drives international production decisions. Furthermore, we highlight how Goertek adeptly diversifies its customer portfolio while navigating the complex dynamics of capture and escape in the buyer–supplier relationship of global value chains, demonstrating a proactive approach to thrive in an increasingly interconnected and uncertain world.