Why Apple Still Manufactures iPhones in China — And It’s Not About Cheap Labour

In a world where “Made in China” often triggers assumptions about low-cost production, Apple CEO Tim Cook has a very different take — and it’s not what you might expect.

An old video of Tim Cook has recently gone viral again, thanks to renewed discussions around US President Donald Trump's push for American companies to "bring manufacturing home." Apple, often at the center of this debate, has faced pressure to shift its iPhone production to the United States. But as Cook explains in the resurfaced clip, Apple’s choice to manufacture in China has little to do with cheap labor—and everything to do with expertise.

Not About Wages, But Workmanship

“The popular conception is that companies come to China because of low labour costs,” Cook says . “I’m not sure what part of China they go to, but the truth is China stopped being the low labour-cost country years ago.”

That statement alone shatters a common myth.

In fact, wages in Chinese tech hubs like Shenzhen or Shanghai have risen significantly, often rivaling those in parts of the West. So why is Apple still there?

The Secret Sauce: Tooling Talent

Cook’s answer is simple but profound: it’s about the depth of skills in China’s manufacturing workforce.

“Our products require advanced tooling and precision that’s state-of-the-art,” he explains. “Tooling skill in China is very deep.”

He even paints a powerful visual: “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.”

This isn’t just about quantity—it’s about quality, speed, and scale. China has spent decades building a vocational pipeline of highly trained manufacturing engineers, something the US and many other countries have slowly let decline.

The Bigger Picture: Scale, Speed & Supply Chain Supremacy

Many experts and even everyday users on social media echoed Cook’s points. One user wrote, “It’s about scale, speed, and precision. China has a massive pool of highly skilled tooling and manufacturing engineers.”

Another user who had worked with Chinese colleagues chimed in, saying, “Employee cost is very high there and at par with advanced nations.”

But here’s what really seals the deal for companies like Apple: China’s unmatched manufacturing ecosystem. From component suppliers and microchip manufacturers to logistics and assembly line experts—everything is just a stone’s throw away. It's not just about making a phone; it's about delivering millions of them, quickly, efficiently, and with razor-sharp precision.

🇺🇸 Could the U.S. Catch Up?

Bringing iPhone manufacturing back to the U.S. sounds appealing on paper—patriotism, jobs, and economic independence. But as Cook implies, it’s not just about throwing money at factories. It’s about rebuilding an entire generation of skilled vocational labor, rethinking educational priorities, and creating a robust supply chain network.

That takes time. And lots of it.

Final Thoughts

So next time you flip your iPhone and see “Assembled in China,” remember—it’s not just a cost-saving decision. It’s a calculated move built on decades of tooling expertise, manufacturing infrastructure, and an unmatched scale that even the most developed nations struggle to replicate.

Tim Cook’s message is clear: It’s not about where it’s made, but how it's made—and who has the skills to make it best.