CEO Tim Cook calls China 'critical' for Apple's business during Shanghai visit

"Apple's CEO Tim Cook Highlights China's Vital Role in Company's Strategy" - During his visit to Shanghai, Tim Cook underscores China's significance to Apple's business operations. Delve into the reasons behind this strategic emphasis, including market potential, manufacturing capabilities, and consumer demand. Explore the implications for Apple's global business strategy.

His visit comes after the iPhone maker opened a new retail store in Shanghai on Thursday. Cook engaged with local media in the Chinese financial hub, emphasising the indispensable nature of China to Apple's supply chain and future endeavours. In an interview with state-owned media outlet Global Times, Cook said, "There's no supply chain in the world that's more critical to us than China."

Acknowledging China's strategic importance as both a market and a manufacturing hub for Apple, Cook commended the nation's advanced manufacturing capabilities and skilled workforce.

Moreover, Cook also reportedly told Chinese media that Apple would need the country’s help in achieving its goal of carbon-neutral products by 2030 and that the tech giant is heavily investing in artificial intelligence.

Cook's remarks come against the backdrop of mounting challenges faced by Apple in China, including dwindling iPhone sales and intensifying competition from domestic rivals such as Huawei.

To further boost its presence in China, Apple announced on Tuesday it will expand an existing lab in Shanghai and open a new one in Shenzhen. The new entity in Shenzhen will focus on researching and testing products including iPhones and Vision Pro headsets, the company said.

Cook made at least two visits to China, Apple's third-largest market by revenue, last year. He also travelled to Beijing around the same time last year, where he visited an Apple store and attended the China Development Forum.

Source: CNBC‍