After facing political attacks, Apple realized its retail sales were not its main leverage with Beijing. Its real power was its massive, multi-billion dollar investment in training hundreds of local suppliers. This positioned Apple as the single largest contributor to China's high-end electronics capabilities, a key government priority.

To prevent its suppliers from going bankrupt if contracts were cut, Apple mandated that no supplier could be more than 50% dependent on its business. This forced highly-trained manufacturers to find other customers, directly enabling the rise of sophisticated Chinese smartphone brands like Huawei and Xiaomi.

China offers a hyper-concentrated manufacturing ecosystem where suppliers are neighbors, supported by world-class infrastructure. This dramatically speeds up prototyping and production, turning complex international logistics into a simple "walk down the street."

The young Steve Jobs famously vilified IBM in the iconic "1984" ad. However, upon returning to a failing Apple, the older Jobs recognized his own operational weaknesses. He hired a wave of talent from IBM, including Tim Cook, to instill the discipline in logistics, procurement, and manufacturing that he had previously disdained.

Apple's deep reliance on China is not just about cost but a 25-year investment in a manufacturing ecosystem that can produce complex products at immense scale and quality. Replicating this unique combination in India or elsewhere is considered fanciful.

While China bans many US tech giants, it welcomed Tesla. A compelling theory suggests this was a strategic move to observe and learn Tesla's methods for mass-producing EVs at scale, thereby accelerating the development of domestic champions like BYD, mirroring its past strategy with Apple's iPhone.

Apple wasn't a visionary in offshoring; it was a laggard. Its move to China was driven by the inability to manufacture the radically different iMac, a product designed to save the company. This desperation forced it to abandon its long-held control over manufacturing and partner with Asian suppliers.

Due to extreme demand and limited official stores, scalpers backed by triads created a massive arbitrage opportunity. They controlled distribution, buying iPhones in bulk and selling them at huge markups. This shadow economy became so profitable that, on a per-unit basis, these groups were making more money than Apple itself.

Terry Guo of Foxconn pursued a partnership with a struggling Apple, recognizing that learning from Apple's demanding standards was more valuable than short-term profits. He understood Apple's uniqueness better than Apple did, betting that mastering their complexity would make Foxconn capable of serving any client.