Designed in US, Made in China: Why Apple is Stuck
April 15, 2025 — Cupertino, CA
Apple’s sleek products proudly display the phrase “Designed by Apple in California. Assembled in China.” For over two decades, this partnership has powered the tech giant’s rise to global dominance. But in a world shifting toward geopolitical uncertainty, pandemic-era supply chain disruptions, and growing calls for reshoring, Apple finds itself in a paradox: the company is too invested in China to leave, yet too exposed to stay comfortably.
Despite growing tensions between the U.S. and China, Apple remains heavily reliant on Chinese manufacturing for its iPhones, iPads, and MacBooks. At the heart of this dependency lies an intricate web of supply chains, high-tech factories, and an unmatched ecosystem of skilled labor—all built over years of cooperation with Chinese manufacturers like Foxconn and Pegatron.
“China’s manufacturing infrastructure is simply irreplaceable in the short term,” said Richard Yang, a global supply chain expert based in Hong Kong. “Apple relies not just on cheap labor, but on speed, precision, and scalability that no other country currently matches.”
Apple has attempted to diversify in recent years. Production of some iPhone models has shifted to India and Vietnam, and the company has explored partnerships in Southeast Asia. Yet, these efforts remain limited in scale.
According to a 2024 report from Bloomberg, over 90% of Apple’s final assembly still occurs in China. Components like advanced chips are produced by Taiwan’s TSMC, and many subcomponents still flow through Chinese factories before reaching final assembly lines.
Part of Apple’s struggle lies in its vertically integrated design approach. Its proprietary hardware and software are tightly linked to manufacturing processes. Retraining an entirely new workforce and replicating China’s just-in-time logistics network isn’t just costly—it could delay product launches, denting market confidence and investor returns.
“There’s also a cultural and operational rhythm between Apple and Chinese suppliers that took years to develop,” noted Lisa Tran, a former Apple logistics manager. “It’s not something you can just replicate in another country.”
Meanwhile, growing political pressure from both Washington and Beijing complicates the landscape. U.S. lawmakers have urged tech companies to reduce reliance on China for national security reasons, while Beijing is tightening rules for foreign firms operating within its borders.
Caught in the middle, Apple continues to walk a tightrope.
Until a true alternative emerges—one that can offer China’s scale, expertise, and efficiency—Apple’s label may continue to read the same: “Designed in the U.S., Made in China.”