The Circuit Episode 117: Talking Apple in China with Patrick McGee
12 snips
May 12, 2025 
In a captivating conversation, Patrick McGee, author of 'Apple in China' and former FT reporter, sheds light on Apple's intricate relationship with the Chinese market. He discusses how Apple's investments have revolutionized local tech manufacturing and shaped consumer culture. McGee delves into the crucial role of Foxconn and TSMC in Apple's supply chain evolution and highlights the economic implications of Apple's strategies on global manufacturing. He also examines challenges of IP transfer and the rising influence of electric vehicles in China, illustrating Apple's lasting impact.
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Apple's Deep Manufacturing Role
- Apple's manufacturing design engineers (MDEs) work closely with suppliers to invent new components and proprietary processes.
- Apple's involvement in offshoring is more about detailed orchestration than simple outsourcing.
iPhone as China's Status Symbol
- The iPhone became a status symbol in China representing the American dream and upward mobility.
- Apple was surprised by the irrational exuberance and demand from Chinese consumers.
Supplier Forecasts Were Always Wrong
- Apple gave suppliers forecasts that were consistently inaccurate, leading suppliers to seek outside analysis.
- Analysts used this uncertainty to gauge Apple's real shipment numbers through multiple conversations.
