Business Books & Co. [S5E5] Apple in China with Patrick McGee
Aug 5, 2025
Patrick McGee, author of *Apple in China* and former principal Apple reporter for the Financial Times, dives into the complex relationship between Apple and China. He discusses Apple's evolution from a garage startup to a global powerhouse and the intricate manufacturing strategies behind that success. McGee sheds light on the partnership with Foxconn, criticizing the external narrative of exploitation, and explores Tim Cook's outsourcing strategies. The conversation reveals the geopolitical risks involved and questions corporate leadership dynamics within Apple.
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Apple's Manufacturing Origins
- Apple originally built their own computers, embodying manufacturing in their DNA. - Outsourcing began out of desperation in the 90s, particularly with the sale of a Colorado factory.
iMac Revolutionized Manufacturing
- Apple's design innovation with the iMac forced changes in manufacturing strategies. - The iMac's design was initially "unmanufacturable," sparking deep integration with suppliers and supply chains.
IBM PC Set Outsourcing Model
- IBM's 1981 PC outsourced nearly everything, setting a precedent for standardized components. - This shift enabled Asian companies, especially Taiwanese manufacturers, to become vital suppliers and eventually take lead roles.
