The Morning Brief Patrick McGee on the Apple-China Toxic Nexus and Where India Stands
May 30, 2025
Patrick McGee, Financial Times’ lead Apple reporter and author of 'Apple in China', discusses Apple's deep ties to China and the geopolitical implications of its manufacturing strategies. He reveals how trade tensions and the pursuit of rapid production have created a complex dependency on Chinese supply chains, particularly with Foxconn. McGee also examines India's challenges in emerging as a manufacturing alternative. The conversation sheds light on misconceptions of 'made in India' products and the broader quest for efficiency without compromising democratic values.
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Apple's Three-Tier Design Strategy
- Apple's manufacturing strategy evolved through three key design stages: industrial design, product design, and manufacturing design.
- Manufacturing design's role in training factories worldwide made Apple uniquely intertwined with Chinese industrial capabilities.
Shanghai iPhone Queue Saga
- In 2010, thousands of migrants queued endlessly in Shanghai to buy limited iPhones for black-market reselling.
- Police used force to disperse them, illustrating Apple's overwhelming success but poor understanding of China's cultural and distribution challenges.
Political Backing Crucial for India
- India needs strong political backing from its government and Washington to secure Apple orders and build a deeper supply chain.
- Investing not only in assembly but also in upstream components and raw materials is critical for supply chain growth.
