The media pressure on Apple is building, as evidenced by this article in today’s NY Times. Apple assembles nearly every iPhone, iPad and IMac in China. One reason is that the Chinese government has built roads and other infrastructure. The supply of labor is a factor. Another is that Apple’s entire supply chain is concentrated there.
But why hasn’t Apple created any alternative manufacturing locations? It just seems common sense to not rely on a single manufacturing platform.
The answer may be that Apple is afraid of what would happen if it made any serious effort to diversify its manufacturing. The Chinese government has a huge range of tools it could use to punish Apple–surprise inspections, supply chain disruptions, anti-trust investigations, etc. In effect, Apple and its global information platform have become captives, as I argue in my new book, A Grand Strategy: Countering China, Taming Technology, and Restoring The Media, seen here. What to do about American technology compaies operating in China is one of the thorniest challenges the Biden Administration faces in creating a coherent China strategy.
