Behind the Money
Best Of: Why Apple can’t leave China
Sep 27, 2023
Apple's challenges in China, impact of China's zero COVID policy, struggles in fulfilling iMac orders, partnership with Foxconn, difficulties in shifting away from China
21:48
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Quick takeaways
- Apple's heavy reliance on Chinese manufacturing and its complex supply chain make it challenging for the company to cut ties with China and diversify its operations.
- China's unique combination of manufacturing capabilities, government support, and infrastructure make it difficult for Apple to find a suitable alternative and replicate its success in other countries.
Deep dives
The Challenges of Apple's Relationship with China
Apple faced a dilemma when confronted with questions about human rights in China. While Apple wants to support people's rights, it relies heavily on Chinese manufacturing for its hardware, which generates 80% of its revenue. The growing tensions between China and the US, along with China's increased control, have made it challenging for Apple to operate in China while also dealing with demands from Beijing. As Apple considers diversifying its supply chain away from China, it realizes the complexity and difficulty of replicating China's labor force, institutional knowledge, and support from the Chinese government.
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