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Apple CEO Tim Cook addressed common misconceptions surrounding the tech giant's decision to manufacture in China, offering insight into the real reasons behind the company's reliance on the country, in a throwback interview that has recently gone viral again.
Contrary to the popular belief that companies flock to China for cheap labour, Cook said that this narrative is outdated. "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 costs country many years ago," Tim Cook stated, clarifying that the decision to manufacture in China is driven by a different set of factors.
Cook highlighted the unparalleled concentration of skilled labour in China as the primary reason for Apple's manufacturing presence there. He elaborated on the advanced tooling and precision required to produce Apple's products, noting that China's vocational expertise in these areas is unmatched globally.
"The reason is because of the skill, the quantity of skill in one location, and the type of skill it is," he explained. "The tooling skill is very deep here. In the US, you could have a meeting of tooling engineers, and I'm not sure we could fill the room. In China, you could fill multiple football fields."
This extensive pool of skilled workers, Cook argued, is essential for the intricate manufacturing processes that Apple products demand. The CEO's comments got a comment from Tesla CEO Elon Musk who responded with “true” in comments.
Apple CEO Tim Cook addressed common misconceptions surrounding the tech giant's decision to manufacture in China, offering insight into the real reasons behind the company's reliance on the country, in a throwback interview that has recently gone viral again.
Contrary to the popular belief that companies flock to China for cheap labour, Cook said that this narrative is outdated. "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 costs country many years ago," Tim Cook stated, clarifying that the decision to manufacture in China is driven by a different set of factors.
Cook highlighted the unparalleled concentration of skilled labour in China as the primary reason for Apple's manufacturing presence there. He elaborated on the advanced tooling and precision required to produce Apple's products, noting that China's vocational expertise in these areas is unmatched globally.
"The reason is because of the skill, the quantity of skill in one location, and the type of skill it is," he explained. "The tooling skill is very deep here. In the US, you could have a meeting of tooling engineers, and I'm not sure we could fill the room. In China, you could fill multiple football fields."
This extensive pool of skilled workers, Cook argued, is essential for the intricate manufacturing processes that Apple products demand. The CEO's comments got a comment from Tesla CEO Elon Musk who responded with “true” in comments.
