prc30 on Nostr: China Morning Missive Tim Cook is back in China, and this should be taken as a clear ...
China Morning Missive
Tim Cook is back in China, and this should be taken as a clear indication that Apple’s manufacturing ecosystem remains heavily dependent on China.
For all the talk of diversifying production through an aggressive investment program into India, it is clear that doing so in any meaningful way is proving problematic.
China’s competitive edge isn’t low-cost labor. Where China has excelled and has built a commanding moat is through its distribution architecture. Road. Rails. Ports.
No other geography or region, be that India or elsewhere, has the necessary infrastructure in place to efficiently support, at scale, the likes of Apple.
Apple and its relationship with China is also just one example. There are countless other global companies facing the very same issue (and fate).
Tim Cook is back in China, and this should be taken as a clear indication that Apple’s manufacturing ecosystem remains heavily dependent on China.
For all the talk of diversifying production through an aggressive investment program into India, it is clear that doing so in any meaningful way is proving problematic.
China’s competitive edge isn’t low-cost labor. Where China has excelled and has built a commanding moat is through its distribution architecture. Road. Rails. Ports.
No other geography or region, be that India or elsewhere, has the necessary infrastructure in place to efficiently support, at scale, the likes of Apple.
Apple and its relationship with China is also just one example. There are countless other global companies facing the very same issue (and fate).