[tcpekin]

Some interesting quotes (can be found in other accounts as well):

For Mr. Cook, the focus on Asia “came down to two things,” said one former high-ranking Apple executive. Factories in Asia “can scale up and down faster” and “Asian supply chains have surpassed what’s in the U.S.” The result is that “we can’t compete at this point,” the executive said.

“The entire supply chain is in China now,” said another former high-ranking Apple executive. “You need a thousand rubber gaskets? That’s the factory next door. You need a million screws? That factory is a block away. You need that screw made a little bit different? It will take three hours.”

So, from what I've read, there is also the huge factor of being able to easily source parts, much easier than in the US, and also much easier to change a factory.

[1] https://www.nytimes.com/2012/01/22/business/apple-america-an...

[pfranz]

Thank you for pulling a source and some specifics!

I also remember Apple talking about expertise. The number of people experienced in running a large factory exist in the US, but at a much smaller number. Which means they're harder to hire and likely warrant a higher salary.

I also think people greatly over emphasize the role of assembly. I believe it's less than 10% of the cost of each phone. But, in light of all that, it was good to see attempts to onshore more of the production.