Tim Cook has been traveling to China this week. Among numerous meetings, the CEO reportedly met with a Chinese government official. The result? Apple is said to be increasing its investment in China, particularly in supply chain development.
China visit comes at key moment for Apple
Apple CEO Tim Cook met with China's information technology minister on Wednesday. According to Reuters, topics discussed included “Apple's development in China, online data security management and cloud services.”
Following the meeting, state news agency Xinhua shared a quote from Cook signaling a renewed commitment to invest more in China in the future.
From Reuters:
“Apple is committed to seizing the opportunities provided by China's opening-up and will continue to increase its investment in the country, thereby promoting high-quality development of China's industrial and supply chains,”” Cook is quoted by Xinhua News Agency.
For years, Apple has been slowly diversifying its supply chain by increasing investment outside of China.
However, whether Cook’s published quote indicates a policy change or simply an act of political maneuvering, the changing smartphone landscape in China is almost certainly behind it.
Over the past couple of years, Apple has faced much stronger competition from Chinese smartphone makers, which has led to problems with iPhone sales.
The iPhone 16 has had a strong start in China so far, but that’s unlikely to last long unless Apple can bring Apple Intelligence to Chinese users in the not-too-distant future.
Currently, China and the EU are the only two territories where Apple Intelligence is completely disabled for users. But hopefully Cook’s government rounds this week have led to progress on that front.
What do you think of this news? Is Apple doubling down on its Chinese supply chain or just trying to navigate a tricky political situation? Let us know in the comments.
