India has slowly garnered a strong standing in the corporate world. Major companies have been looking to invest and hire Indians as they have been proven to be an efficient workforce with cost-effectiveness.
Apple is one major tech giant that has been in talks with the Indian government to open up their manufacturing units in the country. As of now, China has been the designated country where Apple has been inclined to manufacture its flagship iPhone range and other gadgets.
This raises the question: why are iPhones made in China?
The brand has recently launched its latest iPhone 16 series and Apple Watch Series 10 amongst others. Before the launch, a video of the company CEO Tim Cook has been doing rounds on social media where he has explained why iPhones are made in China.
In the viral video on X, shared by Historic Vids, Apple CEO Tim Cook can be heard saying, “The popular conception is that companies come to China because of low labor costs. I’m not sure what part of China they go to, but the truth is China stopped being a low labor cost country many years ago”.
He further stated, “The reason is because of the skill, the quantity of skill in one location, and the type of skill it is. The tooling skill is very deep here. In the US, you could have a meeting of tooling engineers, and I’m not sure we could fill the room. In China, you could fill multiple football fields. Vocational expertise is very very deep here”.
Tim Cook explains why Apple chooses China for manufacturing. pic.twitter.com/jDEkpXUorp
— Historic Vids (@historyinmemes) September 5, 2024
Twitter CEO, Elon Musk, retweeted the video and wrote ‘True’. It can be said that he agrees with the statement.
According to a Bloomberg report, if Apple chooses to shift its production in India, it could lead to a price reduction of up to 10% for these devices in India.
The Indian government has also recently decided to lower customs duties on mobile phones. This may further incentivize Apple to move to India and potentially lead to additional price cuts.
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