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by mythz 2030 days ago
The overarching reasoning for why manufacturing moved to China appears to be they have way more readily available skilled workers & that "The entire supply chain is in China now":

> "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."

> Apple had originally estimated that it would take nine months to hire the 8,700 qualified industrial engineers needed to oversee production of the iPhone; in China, it took 15 days [1]

Tim Cook on why Apple makes iPhone's in China:

> The number one reason why we like to be in China is the people. China has extraordinary skills. [2]

[1] https://theweek.com/articles/478705/why-apple-builds-iphones...

[2] https://www.inc.com/glenn-leibowitz/apple-ceo-tim-cook-this-...

1 comments

Taking 9 months to diversify manufacturing of a $2T business is probably worth it.

I don't buy time being the problem. Once manufacturing is in the US, then what? It probably costs 10x+ what it would cost in China or India. That's the bigger problem.

> Taking 9 months to diversify manufacturing of a $2T business is probably worth it.

It's not clear why the most valuable company in the world should abandon their logistical strategy and industry envious high margins to risk their focus and war chest on a gamble that would almost undoubtedly make themselves more uncompetitive with lower margins, increased prices and less units sold.

As for diversity, iPhone parts are sourced from multiple countries, whilst most are assembled by Foxconn in China, they're a Taiwanese multinational manufacturer with factories in India, Thailand, Malaysia, the Czech Republic, South Korea, Singapore and the Philippines.

Apple already manufactures their larger more expensive Mac Pro and iMacs products in the US but I don't see them manufacturing any iOS devices unless it's mostly automated by robots.