How Apple made China a tech superpower

📸 Princess paparazza | 🤖 AI professor | ✈️ Code jokes

Books

A worker on the Apple factory line in Shenzen in 2010. Voishmel/AFP/Getty

How Apple made China a tech superpower

Most people acknowledge that “Apple wouldn’t be Apple without China”, writes Patrick McGee in his new book, Apple in China. What few realise is that “China wouldn’t be China today without Apple”. When the company began shifting its manufacturing operations there in the early 2000s, the Chinese labourers lacked the skills and expertise to do the job. So Apple taught them. American engineers were flown in “by the planeload”; if the factories they used didn’t have the right kit, Apple would spend hundreds of millions of dollars buying and installing it. So many (mostly male) engineers were sent across that their wives back home in the US called themselves “Apple widows”. The massive bonuses and extra days off they received were known as the DAP, or “divorce avoidance programme”.

This training strategy – effectively “an Ivy League university for hardware” – proved wildly successful for Apple. Between 2003 and 2012, its global profits soared from $69m to $41.7bn, “a rise of more than 60,000%”. But it was also a massive boon for China. Apple estimates that by 2015 it was contributing $55bn a year to the Chinese economy, in terms of salaries, training and equipment. And a rule that Apple could account for no more than 50% of its suppliers’ revenues turbocharged China’s homegrown smartphone industry: the market share of local brands like Huawei and Xiaomi rose from 10% in 2009 to 74% by 2014. For Beijing, this quarter-century transfer of technology and know-how has been manna from heaven. They spent decades trying to catch up with the West in advanced industry. “Here was America’s most famous tech giant willingly playing the role of Prometheus, handing the Chinese the gift of fire.”

Apple in China: The Capture of the World’s Greatest Company is available to buy here.

Advertisement

The unswerving search for quality
In this latest article by Charles Luke, manager of Murray Income Trust, he shares that on Murray Income Trust, quality is their lodestar. It is the guiding philosophy that drives the team’s investment decision-making, helping them uncover those companies that can deliver strong, repeatable returns year after year – in other words, companies that have at least as good a future as their past. Quality companies are rare, and hard to find. Murray Income Trust have made it their business to discover them. Capital at risk. Read more

Property

THE EAST END HOME This four-bedroom townhouse in Wapping, east London has been chat show host Graham Norton’s home for the past 20 years, says Country Life. The Georgian house, located on a private garden square, combines the charm of a period property with the feel of a warehouse loft. On the lower-ground floor is a modern kitchen, dining room, large living area and patio, while a second living space and one bedroom occupy the ground floor. A further three bedrooms are spread over the top two floors, with views of the river. Wapping Overground station is a seven-minute walk. £4.95m. Click on the image to see the listing.

Heroes and villains

“ITAWT – ITAWA – PUDYE – TTATT”: Tweety and Sylvester

Villains
Air traffic controllers, whose prudishness over a few silly-sounding route names has forced the regulator to rename them. Six of the five-letter name codes over the British Isles will be reassigned next month, says The Daily Telegraph: PIKEY, OKNOB, UTITI, COXPE, RUBMI and RATPU. While the waypoint names are now generated by computer, they were originally written manually in the 1970s – a task some seem to have rather enjoyed. In Portsmouth, New Hampshire, the sequence for arriving from the north-west goes: ITAWT – ITAWA – PUDYE – TTATT. And if the pilot has to abort the landing and try again, the next checkpoint is IDEED.

Villains
A group of Dutch scientists who have come to the distinctly gloomy conclusion that the universe will die much sooner than expected. They reckon the stars will all have burnt out in 10 to the power of 78 years – that’s a one followed by 78 zeros – down from the previous estimate of 10 to the power of 1,100 years. Better make the most of it.

You’re missing out…

To read the rest of today’s newsletter – including the Telegraph jumping the gun on China-Taiwan, and why we should care about the millionaires leaving Britain – please take out a paid subscription.

It’ll take just 30 seconds, and new subscribers get 50% off, meaning it’s just £4 a month or £40 for the year.

Let us know what you thought of today’s issue by replying to this email
To find out about advertising and partnerships, click here
Been forwarded this newsletter? Try it for free
Enjoying The Knowledge? Click to share

Reply

or to participate.