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TechCheck

Best Of 2023: Apple In China 12/28/23

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 28 December 2023

⏱️ 13 minutes

🧾️ Download transcript

Summary

Apple’s China problem & opportunity… how its longtime ticket to success has become a liability.

Transcript

Click on a timestamp to play from that location

0:00.0

Apple's China problem, how its longtime ticket to success has become a liability.

0:06.5

It's Thursday, December 28th. Welcome to the Tech Check podcast. I'm Dearderbosa.

0:10.8

And I'm Mark Gilbert. Yesterday, D. We talked about T-Moo and the growth of Chinese shopping apps. Today, it's the flip side of that coin.

0:18.8

How Apple, which profited from a huge supply chain in China for decades is now trying to diversify away from the country.

0:27.3

And Tim Cook, he built his reputation at Apple through the Chinese supply chain.

0:31.7

He got costs down, outsourcing, component manufacturing to local companies,

0:36.3

but now with rising geopolitical tensions and a very different relationship with Apple,

0:40.6

China's looking to countries like India and Vietnam to build that

0:43.6

next generation of manufacturing centers. And it's a delicate dance because China

0:47.8

still needs the factories it does have in China and it really needs China's growing middle class to buy iPhones.

0:55.0

So it has to sort of do both things at once and China, to be honest, needs Apple as well.

1:00.4

It wants those jobs within its borders and that was the subject of our deep dive on

1:05.2

Apple and China's relationship. Take a listen.

1:10.9

Apple can thank China for much of its success.

1:14.0

Access to cheap manufacturing,

1:18.0

a fanatic iPhone base,

1:20.0

even billions of dollars from China's government to build out infrastructure.

1:25.0

And China owes no less to Apple.

1:27.4

The rise of its middle class, sprawling cities filled with skilled workers,

1:32.1

and the creation of a booming technology market

1:34.4

but it's come at a price protesters at a major supplier facing off with

1:41.0

local competition accusations of censorship.

...

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