Land of the Giants

Apple's China Problem

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Oct 13, 2021
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ANECDOTE

Trump and Cook's Photo Op

  • In 2019, Donald Trump and Tim Cook staged a photo op at an existing Mac Pro factory in Austin, Texas.
  • Trump falsely claimed Apple was newly building the factory in the US, while Cook played along.
INSIGHT

Cook's Strategy

  • Tim Cook's seemingly passive participation in the photo op served a strategic purpose: protecting Apple's business interests in China.
  • By appeasing Trump, Cook successfully avoided tariffs on Chinese-made goods, crucial for iPhone sales.
INSIGHT

Apple's China Dependence

  • Apple's reliance on China is twofold: 20% of its sales come from Chinese consumers, and China is its primary manufacturing hub.
  • Tim Cook orchestrated this dependence by shifting Apple's supply chain to China during his early tenure.
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