The iPhone is synonymous with cutting-edge technology and sleek design, but have you ever wondered why Apple chooses to assemble most of its devices in China? You might assume it’s because of cheap labor, but according to Apple CEO Tim Cook, the truth is much more nuanced than that. In a 2017 interview, Cook explained why China remains the central hub for iPhone assembly—reasons that challenge popular assumptions and offer insights into the complexities of global manufacturing.
The Myth of Cheap Labor
When the topic of iPhone production in China arises, many people immediately think of the low labor costs that make it an attractive location for manufacturing. However, Tim Cook challenged this assumption during his 2017 interview with Fortune. According to him, China has long stopped being the place where companies go for cheap labor. In fact, he argued, the cost of labor in China has been rising steadily for years, but the country’s workforce still offers something that other nations struggle to match—skills and expertise.
Cook pointed out that many companies, including Apple, turn to China because of its highly skilled workforce. In particular, the precision and advanced technology required to assemble iPhones are skills that are plentiful in China, and the country has become a one-stop shop for the specialized labor needed. According to Cook, if Apple wanted to find engineers with the specific skills needed to assemble their high-tech devices in the U.S., the company would be hard-pressed to fill a room with qualified professionals. But in China, Cook says, they could easily fill multiple football fields with workers who have the right skill set.
Tim Cook breaks down why Apple builds in China and why the U.S. isn’t ready to replace it yet.
— Nigel D'Souza (@Nigel__DSouza) April 11, 2025
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Apple’s Efforts to Diversify Its Supply Chain
It’s important to note that Apple has made efforts to diversify its supply chain and reduce its dependency on China. Between 2015 and 2017, the company shifted some of its manufacturing to other countries, including India, where some of the iPhones are now assembled. However, despite these efforts, China still plays a dominant role in the production of Apple products. Experts estimate that up to 90% of iPhones are still assembled in China, meaning that the country’s labor force continues to be central to Apple’s operations.
In light of the trade wars and tariffs imposed by the U.S., Apple has been considering moving some production back to the States. But according to Dan Ives, an analyst at Wedbush, shifting just 10% of Apple’s production from Asia to the U.S. would cost Apple a staggering $30 billion and take at least three years. The analyst also suggests that if the iPhone were assembled in the U.S., the price could increase dramatically—potentially pushing the price of a $1,000 iPhone to as high as $3,500.
The Real Challenge: Balancing Cost and Quality
The issue at hand is not just about costs, but also about maintaining quality and meeting the high standards that Apple has set for itself. China provides not only a skilled workforce but also a well-established infrastructure, making it easier for Apple to maintain the consistency and precision it needs to build millions of devices every year. Even with growing labor costs, China remains the best place to ensure that Apple’s assembly process runs smoothly.
At the same time, Apple’s push to diversify its supply chain and reduce its reliance on China highlights the complexities of modern global manufacturing. While China offers cost-effective solutions and a talented labor pool, it’s also clear that the trade policies and tariffs could force companies like Apple to reconsider their long-term strategies. In this ever-evolving landscape, the decision of where to assemble products is about far more than just labor costs.
Conclusion: Why China Still Leads in iPhone Assembly
While the debate around manufacturing in China is complex, one thing remains clear: China continues to play a vital role in the production of the iPhone. Tim Cook’s insights reveal that it’s not simply about cheap labor but about skills, expertise, and a well-established supply chain that allow Apple to maintain the high standards it’s known for. As Apple continues to diversify its manufacturing base, it’s clear that China will remain a cornerstone of the company’s operations for the foreseeable future.
