Role Reversal: Apple's Big Bet in China

Strongly recommend as a must listen The New York Times June 14, 2021 edition of The Daily podcast, an in-depth look at Apple's relationship China, and how the upper hand has shifted over the past decade.

I still remember the days, back in the mid-1990s, when Apple was on the verge of bankruptcy, and Steve Jobs returned as the 'Interim CEO. Returning as a "more mature CEO" one of his key hires was Tim Cook, who was installed as Chief of Operations.

Cook shut down all of Apple's domestic manufacturing operations, moving them to south east Asia and then, at the dawn of the 21st century and beginning of Apple's innovation renaissance with the iPod, making a big bet China. 

Growing up on the east side of Detroit, watching factory-after-factory close and seeing thousands upon thousands of Americans thrown out of work, it was painful to watch Apple move manufacturing operations to China. 

However, I understood why Tim Cook had to do this and respected his resolve for doing what was necessary to save Apple. I believe that China's rapid rise in advanced manufacturing was financed largely by American and western capital building factories and setting up shop in China. 

In the beginning, Apple had the upper hand. But beginning in 2009 that began to change, and now China has the leverage in this relationship.