Sharp Tech with Ben Thompson American Disruption, Tech’s Manufacturing History in Asia, The Power of Demand in an Uncertain Future
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Apr 10, 2025 The hosts dive into the complexities of America's manufacturing revival, discussing Apple's deep-rooted ties to China and the challenges posed by tariffs. They explore the shifting dynamics in international trade and the implications for tech innovation and labor. The thrill of attending a Formula 1 race in Suzuka adds personal anecdotes, contrasting the excitement of the event with the race's quieter moments. Their insights on F1's exclusive access business model offer a fascinating glimpse into the sports industry's evolving landscape.
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Apple's Early US Manufacturing
- Apple initially focused on US-based manufacturing, building a state-of-the-art factory in Texas.
- This factory became a financial burden when Mac sales didn't meet expectations, contributing to Steve Jobs's initial ousting.
Apple's Pivot to China
- Steve Jobs's return and Tim Cook's supply chain management led to a shift in Apple's manufacturing to China.
- This move allowed Apple to offload risk, streamline inventory, and leverage a more flexible, scalable manufacturing base.
China's Manufacturing Advantage
- Shifting manufacturing to China provided Apple with flexibility and scalability, crucial for rapid product development and launches, like the iPod and iPhone.
- This agility allowed Apple to adapt to market changes and incorporate new technologies quickly.