This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.

Foxconn was founded around the same time as Apple, although 6,000 miles away on the other side of the world. In 1974, when 19-year-old Steve Jobs was working at Atari, 24-year-old Terry Gou borrowed $7,500 ($37,000 in today’s money) from his mother to start up a business.

This week on The CultCast: Apple’s readying a totally redesigned MacBook Pro with next-gen display! We discuss. Plus: Apple’s working on the next generation of MagSafe! Thank the gods. And we take a fascinating look at the unbelievable scale and size of Apple’s megafactories, from a bonus chapter of Leander’s new book, Tim Cook: The Genius Who Took Apple to the Next Level.

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This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.

As iPhone growth exploded, Apple struggled to keep up with demand. Every year, the number of iPhones sold would double, which meant that Apple kept adding new suppliers and assembly operations to keep up. It was a monumental struggle.

This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.

A good measure of the size of Apple’s manufacturing operations is its capital expenditure, the amount of money spends on things like buildings and equipment.

Apple’s capital expenditure, or CapEx, is mindboggling. To get an idea of how big it is, take Apple’s new spaceship campus in Cupertino – which is the fourth most expensive building in the world. It cost the company an estimated $5 billion to construct.

Apple spends a similar amount every six months on manufacturing equipment.

This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.

Apple is famous for design and marketing, but a large part of the company’s success is due to the incredibly complex and efficient manufacturing organization Tim Cook masterminded with Steve Jobs.

No matter how beautiful its products are, the company would go nowhere without a world-class manufacturing and distribution operation that can make millions of devices in the utmost secrecy, to the highest possible standards, and deliver them efficiently all over the globe.

It’s an operation unprecedented in the history of industry. When Jobs and Cook started in 1998, Apple was doing $6 billion in business annually. It now does that every 10 days.

This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.

Apple is a functional organization. It’s not organized along business lines, split into divisions like the iPhone division, the Mac division and the Apple TV division, the way, say a company like Ford has the Lincoln division for its luxury cars, a trucks division, a parts division and so on.

Instead, Apple is organized around functions: design, hardware, software, internet services. In this way, Apple operates like the biggest functional organization on the planet: the military.

This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on Apple’s manufacturing operations.

This is Part 2 of a two-part section on Apple’s misadventures in manufacturing. Part I is here.

Steve Jobs carried his dream of end-to-end control over manufacturing to NeXT, the company that Jobs founded after being booted out of Apple in 1985. It was here that he learned a tough lesson about manufacturing: that sometimes it’s more trouble than it is worth. Or, perhaps more kindly, that great manufacturing capabilities mean nothing if you don’t have a product people want to buy.

This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on Apple’s manufacturing operations.

Steve Jobs always had a deep fascination with automated factories. He was first exposed to them during a trip to Japan in 1983. At the time, Apple had just created a new floppy disk drive called Twiggy. During a visit to Apple’s factory in San Jose, however, Jobs became irate when he discovered the high failure rate of Twiggy drives Apple was producing. More than half of them were rejected. Jobs threatened to fire everyone who worked at the factory