Why Apple can’t just quit China
a year ago
- #Apple
- #Supply Chain
- #China
- Patrick McGee's new book discusses Apple's deep ties with China and its challenges in diversifying manufacturing.
- Apple has trained 28 million workers in China since 2008 and invests $55 billion annually there.
- Despite expanding to India and Vietnam, Apple's supply chain remains heavily dependent on China.
- China's 'red supply chain' companies like BYD and Luxshare are gaining geopolitical importance.
- Apple's diversification to India is happening at one-tenth the speed of its initial expansion in China.
- Vietnam's manufacturing proficiency is tied to its proximity to China, making it vulnerable to disruptions there.
- Chinese tech giants like Huawei and Xiaomi are gaining market share, but Apple's ecosystem retains loyalty.
- Beijing could use Apple as a bargaining chip in U.S.-China trade negotiations due to its reliance on China.