Why iPhones are made in China? Apple CEO reveals
What's the story
A recently resurfaced video shows Tim Cook, CEO of Apple, clarifying the company's decision to manufacture its flagship iPhone range in China, debunking the common belief that it is due to low labor costs. The video clip provides valuable insight into why many global companies, including Apple, have chosen China as their primary production base despite rising labor costs.
Labor skills
Skilled labor is the real reason
Cook stated, "The popular conception is that companies come to China because of low labor costs. I'm not sure what part of China they go to, but the truth is China stopped being the low labor cost country many years ago." He further explained the reason for choosing China as a manufacturing base. "The reason is because of the skill, the quantity of skill in one location, and type of skill it is. The tooling skill is very deep here."
Agreement
Musk supports Cook's statement
Elon Musk, the CEO of Tesla and SpaceX, has also expressed agreement with Cook's views on China's skilled labor. In response to the resurfaced video shared by Historic Vids on X, Musk simply wrote 'True.' This endorsement from another tech industry leader underscores China's role in global manufacturing for electronics and more. The video featuring Cook's explanation has gone viral, amassing over six million views so far, reigniting discussions about Apple's manufacturing strategies.
Twitter Post
Take a look at the video and Musk's response
True
— Elon Musk (@elonmusk) September 6, 2024
Production shift
Apple plans to shift iPhone 16 series production to India
Apple is reportedly planning to move the production of its upcoming iPhone 16 series from China to India. According to a Bloomberg report, this shift could result in a price reduction of up to 10% for these devices in India. The Indian government's recent decision to lower customs duties on mobile phones, may further incentivize Apple's move and potentially lead to additional price cuts.