🍎 Cook signals more China investment

Details

🏛 Beijing Pitch: Yesterday, Tim Cook met Industry Minister Li Lecheng in Beijing. He pledged to expand Apple’s investments in China and deepen cooperation with local suppliers. Apple did not disclose figures, but the message was clear: China remains the company’s key market and production backbone.

🧭 Balancing the supply chain: Apple is expanding manufacturing in India and Vietnam, while large-scale production still comes from China through Foxconn and Luxshare. The strategy spreads geopolitical risk while keeping efficiency and output stable.

🧱 Hurdles in the shift: Beijing is slowing technology transfers to India and Southeast Asia. Foxconn has brought back hundreds of engineers from its Indian iPhone plants. New sites require time for training, quality control, and regulatory approval.

📜 India rules: In New Delhi, Apple is lobbying to amend the 1961 Income Tax Act so that high-end Apple-owned equipment used by contract manufacturers isn’t subject to additional taxation. Without this clarification, costs could rise and expansion could stall.

📈 China demand: IDC reported that Apple shipped 10.8 million iPhones in China in the third quarter, capturing a 15.8 percent market share. The top three vendors were Vivo, Apple, and Huawei — and Apple was the only one to grow in a sluggish overall market.

Big Picture

Apple is sending a clear signal: de-risking, not decoupling. China continues to secure volume, quality, and dense supply networks. India is emerging as the second pillar but still needs regulatory clarity and skilled labor. Vietnam is adding new product lines, such as the upcoming foldable iPhone and the HomePod with integrated display. What matters next are tangible investment steps — clear CapEx plans, joint development programs with suppliers, and political signals from Beijing and New Delhi that can ease manufacturing and export flows.