Tim Cook explains Apple's decision to choose China for manufacturing in viral video; Elon Musk agrees

Contrary to the widespread belief that companies choose China for its cheap labour, Cook stated that this narrative is outdated.

Clarifying that the decision to manufacture in China is driven by a different set of factors, Tim Cook stated, "The popular conception is that companies come to China because of low labour costs. I'm not sure what part of China they go to, but the truth is China stopped being the low labour costs country many years ago."

The Apple CEO emphasized that the primary reason for the California-based global tech giant's manufacturing presence in China is the country's unmatched concentration of skilled labour.

Cook elaborated on the advanced tooling and precision needed to produce Apple’s products, noting that China’s vocational expertise in these areas is unrivaled worldwide.

"The reason is because of the skill, the quantity of skill in one location, and the type of skill it is," Tim Cook explained.

"The tooling skill is very deep here. In the US, you could have a meeting of tooling engineers, and I'm not sure we could fill the room. In China, you could fill multiple football fields," he added.

Cook argued that this large pool of skilled workers is crucial for the complex manufacturing processes required for Apple products.

Tesla CEO Elon Musk echoed this sentiment by commenting "true" on the post.

The clip, shared by Historic Videos on X (formerly Twitter), has garnered 6.6 million views to date.