Tech CEOs are on tour, and they’re pointing east. a few days ago, Lisa SueAMD boss, went to visit samsung for the first time. The result is a contract for the South Korean company to manufacture the next-generation memory for the American company’s AI platform. For his part, Tim Cook, CEO of Apple, was traveling through China. And, after all the pressures from Donald Trump For Apple to manufacture in the United States, Cook is clear about one thing.
China is Apple’s base.
The best. believe me. Tim Cook has transcended. Although it seems that he has little left in the position (at some point he will have to retire and John Ternus aims to be the successor), Cook has become an almost political figure. This is demonstrated in his travels through other countries or in the United States itself. His trip to China has consisted of several phases. He first visited the Apple Store by Taikoo Li, but the highlight was the trip to Beijing to meet with the Minister of Commerce.
One of the points of the meeting was the bilateral relationship between the two. Because Apple is a huge customer for the Chinese technology industry, but China is also a safe asset for Apple. So much so that, as reported by the state portal Xinhua, Cook stated that “China is the most important production base for Apple, as well as its main source in the supply chain.”
China’s pressure. The visit occurred at a time when things are as they are between China and the United States, but also with Apple. The details of the commercial and technological war between the powers are something that we have covered almost daily, but with Apple there is also a mess created due to the commissions in the App Store.
China has demanded greater flexibility from Apple on store restrictions and Apple’s response is a reduction in commission from 30% to 25%. It’s just a little bit of giving in and a show of goodwill on Apple’s part, but China continues to ask that they loosen control over the App Store, which translates into allowing more third-party payment options to cut what they consider like a monopoly. Come on, Apple, in the eyes of Chinese regulators, still have homework.
And the pressure from home. But at the same time that Cook’s visit to China takes place and it is declared that it is the great base of the company, something is moving. On the one hand, India wants to become the new China, and in 2025 Apple achieved a milestone: that one in four iPhones are assembled in India. Assembling is not the same as manufacturing, where China continues to lead the way. And the United States wants to turn the tables.
Within its protectionist policies, Donald Trump’s government is trying to get its technology companies to create value on homeland. Intel’s billion-dollar rescue It was an example of the extent to which the US wants its technology to be manufactured in its territory and the truth is that it is bearing fruit. Apple or NVIDIA already have some assignments for Intelbut these incentives are also encouraging foreign companies such as SK Hynix, Samsung or, above all, TSMC those that are taking over the Americans in their territory.
Many millions at stake. But despite the demands and demands, a powerful gentleman is a gift of money, and China is a huge market with great potential. It is evident that we can think that “what is Cook going to say in China, which is wonderful, of course”, but we must not forget that this is a company that, like all others, seeks the greatest benefits. And China not only has the capacity to meet Apple’s needs in terms of device manufacturing: it is a market to exploit.
A few weeks ago we echoed how the company’s sales marked the best quarter since the first of 2022ending years of declines in Chinese territory (where Huawei has been making a strong comeback), but it’s not just Apple that is pursuing entry into China. NVIDIA has spent months putting pressure on his government to let them sell the H200s in China. Jensen Huang, CEO of NVIDIA, commented that the Chinese cake is one of 50,000 million dollars and publicly asked the US government to stop being jealous and start collaborating in the name of capitalism.
Cook has had a similar message on his trip to China, one supported by Li Qiang, Prime Minister of China who pointed out that if industrial issues are politicized, “the supply chain becomes a weapon, costs will only increase for companies and the momentum for development will be weakened.” In the end, they have gone to puncture where it hurts: the pocket.
Images | Tessa Bury
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