bgl
Designed in California, Assembled in China: Why Apple Can’t Just Walk Away
The back of every iPhone proudly reads “Designed by Apple in California.” But the story of how that sleek rectangle ends up in your hand stretches far beyond Silicon Valley — all the way to sprawling factories across China, where the vast majority of Apple products are made.
Despite ongoing tensions and escalating tariffs under former President Donald Trump — which have soared to 245% on some Chinese goods — China remains Apple’s second-largest market and the backbone of its global supply chain. It’s also home to more than a billion potential customers.
The Backbone of the iPhone Empire
Apple ships over 220 million iPhones annually, and around 90% of them are produced in China. From OLED screens to lithium-ion batteries, a wide array of components are sourced, manufactured, and assembled there. Most are then exported to the U.S., Apple’s largest consumer market.
Though Trump recently spared smartphones and laptops from the most severe tariffs, his administration has made it clear: more restrictions may be on the horizon. “Nobody is getting off the hook,” he posted on Truth Social, hinting at further scrutiny on the entire electronics supply chain.
Apple’s once-celebrated supply chain flexibility is now a double-edged sword — what was a strength has become a liability.
China: The Launchpad for Apple’s Global Rise
Apple first dipped its toes into China in the 1990s, selling Macs through third-party vendors. But the real turning point came in 2001, when the company began manufacturing there, partnering with Taiwanese tech giant Foxconn.
At the time, China was eagerly opening its doors to foreign firms, looking to boost its economy through industrial growth. Apple, nearly bankrupt in the late ’90s, found a critical lifeline — and a manufacturing miracle.
What followed was a rapid expansion. Apple helped train a new generation of Chinese manufacturers, turning small operations into world-class suppliers. One such company, Beijing Jingdiao, went from cutting acrylics to producing high-speed machines capable of shaping iPhone glass.
By 2008, Apple opened its first official store in Beijing, the same year China hosted the Olympics — a moment symbolizing a golden age of Sino-Western cooperation. Eventually, China became home to “iPhone City” — Foxconn’s massive Zhengzhou facility that employs hundreds of thousands.
Today, over 150 of Apple’s 187 top suppliers operate in China, a fact that CEO Tim Cook acknowledged in a recent interview: “There’s no supply chain in the world that’s more critical to us than China.”
Tariff Trouble and Political Pressure
During Trump’s first term, Apple managed to sidestep many tariffs, but the tone has shifted. This time, the company found itself in the crosshairs before exemptions were granted.
Commerce Secretary Howard Lutnick recently declared that the U.S. would reclaim manufacturing dominance: “Millions of Americans will soon be building iPhones,” he said optimistically.
White House Press Secretary Karoline Leavitt echoed the sentiment: “America cannot rely on China for critical technologies like smartphones and semiconductors.”
But experts say it’s not that simple.
Eli Friedman, a former Apple academic advisor, calls the idea of moving iPhone production to the U.S. “pure fantasy.” Though Apple has tried diversifying to Vietnam and India, China still does the heavy lifting — and it’s not just about cost.
The infrastructure, workforce scale, supplier ecosystem, and technical expertise embedded in China are nearly impossible to replicate quickly elsewhere. And moving production to other Asian countries isn’t a guaranteed escape from tariffs either — Vietnam was facing a 46% import duty before a temporary pause was announced.
Caught Between Two Superpowers
China also hasn’t taken Trump’s rhetoric lying down. It responded with 125% tariffs on certain U.S. goods and placed export controls on critical minerals essential to electronics manufacturing — rare earths that are crucial to Apple’s devices.
Any disruption to Apple’s Chinese operations would be a significant blow to Beijing’s post-pandemic growth strategy. Hosting Western manufacturing still provides China with jobs, trade leverage, and tech insights.
But Apple’s continued dependence on China leaves it exposed — not just economically, but politically.
As Beijing pushes homegrown tech firms like Huawei and Xiaomi, Apple is now battling for market share on Chinese turf. It even slipped from the top smartphone spot last year. A sluggish local economy and China’s ban on ChatGPT also make it harder for Apple to market its latest AI-driven devices.
On top of that, Apple has faced increasing pressure from the Chinese government — from restricting AirDrop during political unrest to navigating broad tech crackdowns.
Where Does Apple Go From Here?
Apple has committed to investing $500 billion in the U.S., a figure intended to win favor with American lawmakers. But will that be enough?
According to supply chain consultant Jigar Dixit, even if smartphone tariffs reappear, they won’t sink Apple. But they will create logistical headaches and increase political pressure on a supply chain not easily rerouted.
And as Friedman warns, last week’s exemptions shouldn’t lull Apple into a false sense of security: “The immediate crisis may have passed, but the long-term risk hasn’t.”
In the end, Apple stands at a crossroads between two giants. For now, its feet are still firmly planted in China — not by choice, but by necessity.
