2 weeks Ago By Priya Singh
During the US-China tariff war, US President Donald Trump urged companies like Apple to shift manufacturing to the United States. However, experts and industry leaders have argued that large-scale production isn't practical in the US due to various limitations. In this context, a 2024 video of Apple CEO Tim Cook has resurfaced on social media, where he explains the real reasons Apple continues to manufacture its products in China.
Tim Cook breaks down why Apple builds in China and why the U.S. isn’t ready to replace it yet.
pic.twitter.com/OiEpyIEZlN — Nigel D'Souza (@Nigel__DSouza) April 11, 2025 In a 55-second video clip, Apple CEO debunked the common belief that Apple manufactures in China because of low labor costs.
He clarified that China stopped being a low-wage country years ago, suggesting that this perception is outdated and inaccurate. ALSO SEE: Sundar Pichai's Google Lays Off Hundreds In Android, Pixel, And Chrome Divisions Amid Restructuring Cook emphasized that the real reason Apple and other top tech companies rely on China for manufacturing is due to the country’s unmatched concentration of skilled labor. He pointed to the advanced tooling capabilities and precision work required for Apple products, stating that China possesses a deep and highly specialized pool of talent in these areas.
Most iPhones are still made in China, which was hit by a 54% tariff by President Trump's administration. With the new tariffs coming into effect, Apple has a tough choice: absorb the extra expense or pass it on to customers https://t.co/VE8CFz7UQD pic.
twitter.com/nwYQE6b3Tu — Reuters Asia (@ReutersAsia) April 4, 2025 Comparing the US and China, Cook highlighted the stark contrast in vocational expertise. He stated, “In the US, you could have a meeting of tooling engineers, and I'm not we could fill the room.
” In China, however, “you could fill multiple football fields...
. Hence, the vocational expertise in China is very deep". For the unversed, earlier this week, former President Trump reiterated his call for Apple to start manufacturing iPhones in the US, with White House Press Secretary Karoline Leavitt pointing to the company's $500 billion domestic investment pledge as a sign of commitment.
However, a Bloomberg report suggests that Apple is unlikely to shift iPhone production stateside anytime soon. The report cites key challenges such as a lack of sufficient facilities, skilled labor, and the intricate supplier and manufacturing ecosystem that currently exists only in Asia. Additionally, Apple is increasingly turning to India as a new hub for producing iPhones destined for the US, aiming to reduce its dependence on China.
The company’s partners are building the world’s second-largest iPhone plant in India, and over the past 12 months, Apple assembled $22 billion worth of iPhones there. This represents a nearly 60% increase in production compared to the previous year, reflecting Apple's ongoing efforts to diversify its manufacturing operations..
