Steve Jobs on China
TL;DR
Steve Jobs viewed China as having unmatched, deep manufacturing skills essential for Apple's scale and precision production needs.
Key Points
He stated in 2011 that the specialized manufacturing jobs for iPhones would not return to the United States.
Jobs identified the deep quantity of tooling and basic engineering skills available in China as the key reason for locating production there, not just low labor cost.
Under his leadership, Apple was eventually pressured into becoming greener, leading to products virtually free of toxic PVC and BFRs by 2008.
Summary
Steve Jobs’s position on China was rooted in a pragmatic acknowledgment of its unparalleled manufacturing ecosystem, rather than being driven primarily by low labor costs. He articulated that the sheer quantity and depth of specialized tooling and engineering skills available in specific Chinese locations were crucial for Apple’s state-of-the-art products. He famously told the president in 2011 that relocating iPhone production to the U.S. was unfeasible because the American engineering workforce lacked the necessary numbers and specialization to support the required factory scale.
This reliance on the Chinese supply chain meant Apple’s operations deeply engaged with the nation’s industrial base, leading to significant sales and making the products a major aspiration for the emerging Chinese middle class. While Jobs's genius was celebrated in China, which deeply connected with Apple’s aspirational products, the company also faced scrutiny regarding worker conditions and e-waste management, issues that eventually spurred some environmental compliance from Apple under his leadership.
Key Quotes
“because they stole our ideas and intellectual property.”
Frequently Asked Questions
Steve Jobs strongly believed the main reason was not low labor costs, but the density and specialized skill of the manufacturing and tooling engineers available in China. He argued that in the U.S., it would be difficult to find enough engineers to fill a room, whereas in China, multiple football fields could be filled with engineers possessing the required skills.
No, he expressed a firm view that those manufacturing jobs were not coming back to the U.S. When asked by the president what it would take to move production domestically, Jobs was blunt, indicating the complexity and scale of the specialized supply chain built in China made a shift unviable for Apple's products.
Jobs did not personally visit China on business and did not tailor products for the market, yet Apple products became a nationwide aspiration for the growing middle class. His products tapped into their desire for success, despite the high price points relative to average local wages.
Sources8
How Steve Jobs Touched the Chinese Zeitgeist
The effect of Steve Jobs on the lives of impoverished workers in China
Steve's jobs' Cultural Revolution in China
Why Apple is Manufacturing in China
'Those jobs aren't coming back': When Steve Jobs explained why Apple won't make iPhones in the US
"There's a confusion about China. The popular conception is that ...
Steve Jobs: Engineering skills plentiful in China
Steve Jobs' “Do what you love” Advice Doesn't Work for Low-Wage Chinese Workers That Build Apple Products
* This is not an exhaustive list of sources.