synopsis

A 2024 video of Tim Cook explaining why Apple manufactures iPhones in China has resurfaced. Cook clarifies that it's not about cheap labor, but rather China's advanced manufacturing skills and the availability of skilled engineers.

Tim Cook, the CEO of Apple, has once again made news after a 2024 video went viral online, explaining why the tech firm keeps making iPhones in China instead of moving production to the US.

Cook dispels the myth that Apple manufactures its products in China due to lower labour costs in the brief video. China hasn't been a low-cost manufacturing location for years, he says in response to this viewpoint. Rather, he claims that the nation's unparalleled technological know-how and manufacturing prowess are the true cause.

"It's a common belief that businesses choose China due to its cheap labor expenses. I'm not sure where in China they go, but the fact is that China no longer has cheap labor costs," he remarked.

Cook claims that China's workforce size and caliber, rather than price, are what make it unique. Cook claims that Chinese engineers are skilled enough to handle the sophisticated materials and incredibly accurate machining required for Apple's gadgets. He goes on to discuss the differences between the two nations, pointing out that whereas it could be difficult to find a room full of tooling engineers in the US, you might find individuals who specialize in that sector in China, filling multiple football fields.

At a time when political pressure in the US to support local manufacturing is increasing, this old video of Cook has gone viral. Recently, President Donald Trump declared his desire for businesses such as Apple to begin manufacturing electronics in the United States. Additionally, a White House official cited Apple's impending $500 billion domestic investment as evidence that the business may start moving its manufacturing to the United States.

At the same time, Apple is allegedly attempting to increase its footprint in India in order to lessen its reliance on China. A 300-acre iPhone manufacturing facility (by Foxconn) is being developed in Bengaluru as part of the company's current production expansion in the nation.