Apples Deep Ties to China Confronted by Allegations of Forced Labor in Xinjiang
- Apple has a deep relationship with its Chinese suppliers, utilizing custom machinery and expertise to produce the iPhone
- Apple has invested billions of dollars in China and 95% of iPhones, AirPods, Macs, and iPods are made there
- Apple was able to detect when manufacturers were using the “quality fade” strategy which would not work for the iPhone due to their rigorous quality assurance practices
- Recently it has been discovered that some factories are participating in programs which use forced labor from Uyghurs in Xinjiang as part of China’s alleged campaign of genocide
- Apple has a crisis communications strategy which allows them to denounce such situations and audit their supply chain
- Pulling out of China entirely is difficult due to Apple’s deep integration with the Chinese supply chain.
Foxconns Decade of Growth Through Apple: A Look at the Chinese Supplier and its Impact on the Tech Giant
- Tim Cook had the confidence to invest in physical equipment to unlock new opportunities
- Apple’s engineers had to meet with and vet Chinese suppliers, drilling them with technical questions
- Foxconn’s revenue grew from 3 billion dollars in 2000 to 100 billion dollars in 2010 due to their relationship with Apple
- The Chinese government invested one trillion dollars in loans for infrastructure spending after the 2008 financial crisis
- Terry Guo convinced Tim Cook that Apple was underestimating demand for their products in 2010 and Foxconn agreed to foot the bill for facilities
- Apple has been unable to move out of China due its reliance on migrant workers, skilled technicians and infrastructure
- India is not yet ready to produce flagship iPhones and Vietnam cannot provide enough labor cost savings.
Navigating US-China Relations: Examining Apples 275 Billion Dollar Investment and Xi Jinpings Rise to Power
- China’s migrant workers are essential to Apple’s iPhone production
- Tim Cook signed a five-year agreement to spend 275 billion dollars in China in 2016
- Apple is not looking for an alternative manufacturing center, only pursuing a “China plus one” strategy
- Xi Jinping has a long history and rise to power
- Understanding U.S-China relationship will be important in coming years.