Chasing business and partnerships, Apple goes APAC

While politicians who should know better waste time worrying about green bubbles, Apple continues to explore opportunities in global markets as its traditional ones become increasingly stagnant. 

Apple is also seeking ways to become less exposed to America’s growing politically driven tension against China, a nation that has been a strong partner for Cupertino — and therefore, also for US soft power’s success.

Following his visit to China in March, Apple CEO Tim Cook spent a week in Indonesia, Vietnam, and Singapore. The week was no idle executive jolly, nor should it be seen as an opportunity to purchase some new carbon offsets to justify use of the executive jet. Apple’s boss was there to do business — with a few splendid social media moments to add a little extra shine. 

Preparing the ground in Vietnam

During a two-day visit to Vietnam, Cook announced plans to increase spending on manufacturing suppliers there. Luxshare, Foxconn, Compal, and GoerTek already employ 150,000 people in Vietnam, while Apple and third parties support another 50,000 jobs. “From cooperating with local suppliers, to supporting clean water projects and educational opportunities, we are committed to continuing to strengthen connections in Vietnam,” Cook said in a statement.

The current thinking is that Apple sees Vietnam as a hub for Mac, AirPod production.

Nurturing talent in Indonesia

Cook’s tour then stopped in Indonesia, where Apple’s leader met President Joko Widodo to discuss potential investments. Cook even spoke at a news conference, during which he confirmed discussions about manufacturing and characterized the investment opportunity there as “endless.”

Apple doesn’t really have a strong manufacturing connection with Indonesia, but is making significant investments in people there. During Cook’s visit, the company announced its fourth developer academy in Bali. “We’ve seen many times over that a line of code can change the world — and in Indonesia, we’re investing in the creativity and skills of people determined to prove it,” Cook said in a statement. 

Expanding corporate staff in Singapore

Finally, Cook stopped in Singapore, where he visited Apple stores and the company’s new Developer Center. Apple had big news here too, announcing a $250 million investment to extend its existing campus in Ang Mo Kio. That campus is believed to act as a regional hub for corporate operations across the region. Apple first opened up in Singapore in 1981 when it was making the Apple II systems.

Feet on the ground

Apple’s connection with the region is nothing new. It has worked with suppliers and manufacturers across the Asia-Pacific region for years and Cook led those teams. While he was Apple’s Chief Operating Office, he was the leading architect of the company’s globalized, highly efficient supply chain. (He might have engaged in similar negotiations before Apple, when he led procurement at Compaq.)

Staying in the arena

Today, as Apple battles stormy regulatory seas, Cook seems to be leaning deep into his experience to guide the company through. That means meeting national leaders at the highest level in countries in which he sees signs of future opportunity. It builds on Cook’s track record — Apple’s work in India means that nation is accelerating to become a top three market for the company, and the company’s investments across the region should help it build its presence across adjacent national economies.

After all, as Cook once said, “The sidelines are not where you want to live your life. The world needs you in the arena,” and keeping that place in that arena is precisely what Apple needs to do. It’s also important to note that it’s about this time of year the company finalizes production deals with suppliers across the region.

Given the strategic importance of those arrangements, particularly during such interesting times, who better to sign the final commitment than the CEO? After all, we know new iPhones, Macs, iPads, and Vision family products are coming. They just won’t necessarily be made in China.

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