Channels with Peter Kafka How Apple trapped itself in China
26 snips
May 14, 2025 
Patrick McGee, a seasoned journalist and author of 'Apple in China,' shares insights on Apple's deep entanglement with China. He explains how the company’s reliance on Chinese manufacturing has become a liability amid U.S.-China trade tensions. McGee discusses the complexities of relocating production and Tim Cook's strategic choices. As Apple faces fierce competition from local brands, he highlights the ethical dilemmas in operating under a repressive regime and the potential future impacts on innovation and corporate values.
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Apple's China Dependency Risk
- Apple's massive dependence on China for manufacturing is its Achilles heel amid geopolitical tensions.
- Despite optimism about antitrust issues, supply chain risks pose the biggest threat to Apple.
Why iPhones Can't Move to US
- Apple relies on China's dense, dynamic workforce to assemble iPhones seasonally with great scale.
- The U.S. cannot replicate this due to workforce size, flexibility, and cost issues.
India Assembly Just Cosmetic Shift
- Apple's final assembly in India is mostly superficial, with nearly all components still made in China.
- The 'Made in India' label hides continued heavy reliance on China's supply chain.
