In-Depth

'Tim Cook and Apple Bet Everything on China.'
'Tim Cook and Apple Bet Everything on China.'
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Apple in China

5

May 20, 2021
BIG IDEA | ‘For Apple, a clean break with China is impossible.’

‘For Apple, a clean break with China is impossible.’

  • ‘Apple relies on a workforce of more than three million indirect workers in China.’
  • ‘Its top manufacturer, Taiwan’s Foxconn Technology Group, hires hundreds of thousands of seasonal employees in China, many of whom manually insert tiny screws and thin printed circuit boards during the iPhone assembly process, people familiar with the process said.’
  • ‘Tens of thousands of experienced manufacturing engineers oversee the process.’

‘Finding a comparable amount of unskilled and skilled labor is impossible, said Dan Panzica, a former Foxconn executive.’

  • ‘The population in China has allowed suppliers to build factories with a capacity for more than 250,000 people.’
  • ‘The number of migrant workers in China, who do much of Apple’s production, exceed Vietnam’s total population of 100 million.’
  • ‘India is the closest comparison, but its roads, ports and infrastructure lag far behind those in China.’

‘ “You’re not going to be able to have mega-factories anywhere else,” Mr. Panzica said. “You’re going to have to break them up.” ’

‘Moving out could also jeopardize Apple sales in China, which counts for nearly a fifth of its total revenue.'

  • ‘Employing so many local workers helped the company gain access to the market and any reduction might weaken its standing with the government, which wields tremendous influence over how global brands are perceived.’
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