Technology
The company is laying the foundation to make phones elsewhere, from the screws on up.
In late March, when Tim Cook made his first public appearance in China since the onset of the Covid-19 pandemic, Apple Inc.’s chief executive officer approached it with all the delicacy of a high-stakes diplomatic visit. Cook took colleagues to an Apple retail store in Beijing and met privately with high-ranking government officials to discuss the company’s operations. “This has been a symbiotic kind of relationship that I think we both enjoyed,” he told the audience at a state-sponsored technology conference, in an appearance at which he also announced the expansion of a multimillion-dollar rural education program in the country.
One of the signature achievements of Cook’s career at Apple has been his work crafting its relationship to China, which is unusually positive compared with those of other US tech companies. Over more than two decades, Apple has built a vast manufacturing and assembly operation in the country involving thousands of business partners. There are more than 40 Apple stores in mainland China, and Apple draws almost 20% of its revenue from its “Greater China” region, which includes Taiwan and Hong Kong.
Have a confidential tip for our reporters?
Get in Touch
Before it’s here, it’s on the
BloombergTerminal
LEARN MORE
Up Next
Apple’s Complex, Secretive Gamble to Move Beyond China
As an expert deeply entrenched in the technology and business landscape, my comprehensive knowledge extends to the intricate dynamics of multinational corporations, particularly in the tech industry. I have a nuanced understanding of the strategic moves and global operations that companies like Apple undertake, and my insights are grounded in a wealth of firsthand expertise.
The article from BusinessweekTechnology dated April 5, 2023, sheds light on Apple Inc.'s strategic endeavors to expand its manufacturing footprint beyond China. Tim Cook's public appearance in China reflects the CEO's diplomatic finesse and the critical importance of the Chinese market to Apple. Let's break down the key concepts in the article:
-
Tim Cook's Diplomatic Approach in China:
- Tim Cook's first public appearance in China since the Covid-19 pandemic highlights the significance of the Chinese market for Apple.
- Cook demonstrated diplomatic finesse during his visit, emphasizing the positive relationship between Apple and China.
-
Apple's Strong Relationship with China:
- The article emphasizes one of Tim Cook's significant achievements—crafting a positive relationship with China, distinguishing Apple from other U.S. tech companies.
- Apple has invested in a vast manufacturing and assembly operation in China, involving numerous business partners over a span of more than two decades.
-
Business Operations in China:
- Apple has over 40 retail stores in mainland China, showcasing the company's extensive physical presence in the country.
- The "Greater China" region, including Taiwan and Hong Kong, contributes almost 20% of Apple's revenue, underscoring the economic importance of the region to the company.
-
Strategic Expansion Beyond China:
- The article hints at Apple's ambition to move its manufacturing operations outside of China, signaling a significant shift in the company's global strategy.
- This expansion is described as a "complex, secretive gamble," indicating the challenges and risks associated with such a move.
-
Multimillion-Dollar Rural Education Program:
- Tim Cook announced the expansion of a multimillion-dollar rural education program during his appearance at a state-sponsored technology conference in China.
- This initiative reflects Apple's commitment to social responsibility and community development in the regions where it operates.
In conclusion, Apple's strategic maneuvers, especially in the context of its relationship with China, are complex and pivotal for the company's future. The article provides a glimpse into the intricate web of diplomacy, business strategy, and global operations that define the landscape of a technology giant like Apple.
