Why Apple prefers manufacturing in China to the US?

In the ongoing tariff war, US President Donald Trump urged companies like Apple to manufacture their products in the United States. However, many experts and industry leaders argued that large-scale manufacturing in the US isn’t feasible. A 2024 video of Apple CEO Tim Cook recently resurfaced, where he explained why Apple continues to manufacture in China. Cook clarified that China is not chosen due to low labor costs, as many assume. He pointed out that China stopped being a low-wage country years ago. 

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Instead, Cook emphasized China’s unmatched concentration of skilled labor, particularly in advanced tooling and material handling. According to him, the “Tooling skill” in China is extremely advanced, and the depth of vocational expertise there cannot be found in the US. He noted that while a meeting of tooling engineers in the US might not fill a room, China could fill multiple football fields with such professionals. 

Meanwhile, Trump’s administration continues to push for domestic production. White House Press Secretary Karoline Leavitt highlighted Apple’s $500 billion domestic investment plan. However, a Bloomberg report revealed that iPhone production is unlikely to shift to the US soon, citing lack of facilities, skilled labor and supporting infrastructure. 

Instead, Apple is turning to India as a manufacturing hub. The company assembled $22 billion worth of iPhones here in the past year, increasing output by nearly 60% and is building the world’s second-largest iPhone plant in the country.