Tim Cook: Apple Builds iPhones in China for Expertise, Not Cheap Labor
A resurfaced video from 2024 featuring Apple CEO Tim Cook has reignited the debate over why the tech giant continues to manufacture its iPhones in China instead of the United States. The clip, which has gone viral online, sheds light on Apple’s long-standing production strategy and dispels a major misconception.
In the video, Cook addresses a common belief that Apple chooses China for its low labor costs. He firmly pushes back against that idea, saying, “China stopped being the low-cost labor market years ago.” Instead, he emphasizes that the decision is rooted in the country’s exceptional manufacturing infrastructure and talent pool.
According to Cook, what truly sets China apart is its unmatched technical skill and ability to handle large-scale, high-precision production. “If you want to find tooling engineers in the US, it’s hard to even fill a room,” he explains. “But in China, you can fill multiple football fields with them.”
Apple’s products require precise tooling, advanced materials handling, and efficient supply chains — all areas where China still holds a clear edge. Cook’s comments come amid increasing pressure from US leaders to bring manufacturing back to American soil. Former President Donald Trump recently called on Apple to start building devices in the US, while the White House has pointed to Apple’s $500 billion investment in the country as a sign of potential change.
However, experts believe a full shift is unlikely any time soon. According to Bloomberg, the US still lacks the necessary skilled labor, specialized facilities, and tightly integrated supplier ecosystem to match China’s capabilities. The scale of production Apple needs simply isn’t feasible outside Asia right now.
That said, Apple is gradually diversifying its manufacturing network. India has emerged as a key player, with the company ramping up production through partners like Foxconn. Apple now assembles iPhones worth $22 billion annually in India — a 60% increase in just one year — and is developing a massive new factory in Bengaluru.
For the time being, though, Apple’s core manufacturing will remain in Asia. While the company expands its global footprint, both China and India will continue to play pivotal roles in shaping Apple’s supply chain strategy.