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Apple CEO Tim Cook  (Source: siliconbeat.com)
He said it's important to create jobs both abroad and in the U.S.

In an extensive interview with Businessweek, which was released today, Apple CEO Tim Cook confirmed that some Mac production would be moved to the United States in 2013.

Earlier this week, a report from CNN Money revealed an iMac purchase with the label "Computer Assembled in USA" on it. A reader by the name Aaron Gong had bought the 21-inch iMac in a San Jose, California Apple Store just last weekend.

However, another iMac buyer purchased the same unit at the Manhattan Apple Store last week, and it had the expected "Assembled in China" label. Clearly, Apple wasn't moving all Mac production to the U.S., but it sparked some speculation.

Now, Cook said himself that some Mac production will, indeed, make its way to the U.S. next year. He also noted that other parts, such as the iPhone's processor, is from the United States as well (Texas, to be exact).

"It’s not known well that the engine for the iPhone and iPad is made in the U.S., and many of these are also exported—the engine, the processor," said Cook in the interview. "The glass is made in Kentucky. And next year we are going to bring some production to the U.S. on the Mac. We’ve been working on this for a long time, and we were getting closer to it. It will happen in 2013. We’re really proud of it."

Businessweek further asked what it meant for an American company like Apple to be "patriotic." In other words, how important is it to bring production to the U.S. despite it being cheaper overseas?

"I do feel we have a responsibility to create jobs," said Cook. "I don’t think we have a responsibility to create a certain kind of job, but I think we do have a responsibility to create jobs. I think we have a responsibility to give back to the communities, to pick ways that we can do that … and not just in the U.S., but abroad as well.

"I’ve never thought a company’s measurement of job creation should be limited to the number of employees working directly for them. That’s a very old-time way of measuring. Our iOS platform allows developers to work as entrepreneurs and sell their applications to a worldwide market that didn’t exist previously. The mobile software industry was nascent before the iPhone. Now you’ve got hundreds of thousands of developers out there.

"Unlike other companies—at least I know of no other large companies—almost all of our R&D is sitting in California. It’s a part of our model. We do this because it’s important for people to run into each other and discuss ideas and collaborate. We’re building a multibillion-dollar headquarters to house them in what we think will be the center of creativity. We’re building a campus in Austin for people in Texas. We’re building three data centers—adding to the one we have in Maiden [N.C.] and establishing new sites in Oregon and in Nevada."

Source: Businessweek



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Has it come full circle already?
By x10Unit1 on 12/6/2012 12:57:54 PM , Rating: 3
Is production costs finally increased enough overseas that it is cheaper to have it build here?

Interesting.




RE: Has it come full circle already?
By ClownPuncher on 12/6/2012 1:08:16 PM , Rating: 3
The US has always been a profitable place to manufacture goods. Not always the most profitable, but we do manufacture almost as much stuff as China does.


RE: Has it come full circle already?
By semiconshawn on 12/6/2012 1:10:21 PM , Rating: 3
No way. Maybe as much variety. No where close to volume.


By semiconshawn on 12/6/2012 1:11:35 PM , Rating: 1
nowhere


RE: Has it come full circle already?
By ClownPuncher on 12/6/2012 1:27:35 PM , Rating: 2
The US is the second largest manufacturing country in the world, only a few % behind China. It wasn't until 2008-2009 that China even passed us. They are growing much much more quickly than we are, however.


By Argon18 on 12/6/2012 2:32:32 PM , Rating: 1
The only reason the US and Chinese manufacturing numbers are even close right now, is that if you look at the graph, we're at the intersection point of two lines. And China's line is climbing a whole lot faster than ours. A whole lot.

Communist China is the new world Superpower, and we're the ones who funded their rise. Every time you go down to Wall Mart or Best Buy and load your cart with hundreds of dollars of "Made in China" you are funding the rise of a Communist regime - one that has a military four times the size of ours, and nuclear weapon capability. Think about that for a moment...


RE: Has it come full circle already?
By semiconshawn on 12/6/2012 4:42:53 PM , Rating: 2
Everyone makes everything in Asia. Yes we make more "valuable" stuff so if you make 1 car it counts as 7,000,000 toy skate boards. But in the context of who manufactures "more" stuff it is not close.


By ClownPuncher on 12/6/2012 4:54:40 PM , Rating: 2
You got me, bud. They make more toy skateboards than we do. I'm sure their mother will be very proud.


By semiconshawn on 12/6/2012 4:56:42 PM , Rating: 2
Think China is reporting reliable numbers? Currency value. Military manufacturing volumes and capacities. Which is more 1000 $10mil tanks or 10,000 $1mil tanks? Same manufacturing "value" not the same manufacturing.


By melgross on 12/6/2012 2:26:59 PM , Rating: 2
In terms of dollar value, we're pretty close. It was the recession that allowed China to move to first.


RE: Has it come full circle already?
By bobsmith1492 on 12/6/2012 1:26:04 PM , Rating: 2
We manufacture more capital-intensive, expensive, high-margin stuff. China does more low-margin, labor-intensive manufacturing. I.E. cars in the US, clothes in China.


RE: Has it come full circle already?
By Argon18 on 12/6/2012 2:26:25 PM , Rating: 2
Where did you get that bollocks idea from? Heavy industry and large machinery is where the manufacturing shift to China *began*. We're talking large industrial machines with 6 and 7 and 8 figure price tags. In fact, so much heavy manufacturing capability has moved to China, there are certain things now where China is the *only* source for them. You can't get them from the USA any more, because there is no more capability to make them here.

The Chinese are already driving their own domestic cars. Its only a matter of time before Chinese cars make their way to the US. You will see them on US roads within this decade, and they're going to cost a LOT less than anything else out there.


By StanO360 on 12/6/2012 4:20:51 PM , Rating: 3
Just not true, they may make some of that, but it is not their bread and butter. Chips, machinery, turbines, planes. You are partly right.

Nevertheless, the less labor intensive, or less skilled, the greater advantage China has. China drives their own cars, only because they force it, and many if not most are made by first world companies. Look up the show on the BMW plant in South Carolina (I think), the Chinese will have a difficult time competing with that. Minimum employees, maximum technology and efficiency. Things that are only accomplished in an efficient society, which China is not (it is merely subsidized).


RE: Has it come full circle already?
By Apone on 12/10/2012 1:23:47 PM , Rating: 2
Not sure what business class you ever took but one of a firm's primary objectives in business is to maximize revenue/profit and minimize costs (Business 101). This is why it's been common practice for the longest time for companies to send manufacturing jobs overseas (with the exception of the autmotive industry, etc.) as the reduction in costs (generally) leads to added value back to the company shareholders and owners.

You also have to consider that even though manufucturing is profitable in the United States, American labor is still super expensive which is another reason why manufacturing is done overseas.


RE: Has it come full circle already?
By Apone on 12/10/2012 1:25:22 PM , Rating: 2
I don't know, would you be happy to perform a mundane job like putting LCD's in Macs for 8-12 hours a day at $9.00 an hour?


So the question is.....
By GotThumbs on 12/6/2012 12:44:54 PM , Rating: 2
Will Apple charge even more for its "Assembled in the US" and will there be a negative effect in quality control? Costs of assembly will most definitely be higher in the US for Apple and in the end....You the consumer. Unless basic assembly will be done by robots when possible. Job creation does not quantify how many new jobs and what those will be for. It will be interesting to see if labor unions will be involved. If so, expect higher prices.

I look forward to hearing more specifics rather than a general statement of intent.

Point is...don't count your chickens until they've hatched.

Best wishes,




RE: So the question is.....
By Stiggalicious on 12/6/2012 4:19:08 PM , Rating: 3
It all depends on how Apple runs their production lines. At this point I'm imagining they will own the entire production process themselves. Right now they design most of the production and test equipment (except robotic pickers, PCB fab machines, etc.), so moving it in the US can reduce import/export taxes, delays, and issues. They certainly could run more efficient production lines than in China since they won't have delays last nearly as long. Apple flies their engineers to Asia on business class, which gets very expensive very quickly.

Yes, the labor will be much more expensive, but the reduced delays, streamlined logistics, and reduced transport costs will help equalize it a bit.

I also think Tim Cook might have a tiny bit of a heart and let Apple reduce their profit margins a bit to let them be able to say "Made in the USA" without vastly increasing prices.


RE: So the question is.....
By PedroDaGr8 on 12/6/2012 6:23:10 PM , Rating: 3
There is more to manufacturing than just labor cost or materials cost or transport cost. There are a lot of intangibles that go along with having your manufacturing in the same country (let alone hemisphere) as your engineering.

Read this telling quote from a story in the Atlantic about GE returning a large amount of its appliance manufacturing back to once (more or less) dormant GE Appliance Park in Louisville, KY:
quote:
The GeoSpring in particular, Nolan says, has “a lot of copper tubing in the top.” Assembly-line workers “have to route the tubes, and they have to braze them—weld them—to seal the joints. How that tubing is designed really affects how hard or easy it is to solder the joints. And how hard or easy it is to do the soldering affects the quality, of course. And the quality of those welds is literally the quality of the hot-water heater.” Although the GeoSpring had been conceived, designed, marketed, and managed from Louisville, it was made in China, and, Nolan says, “We really had zero communications into the assembly line there.”

To get ready to make the GeoSpring at Appliance Park, in January 2010 GE set up a space on the factory floor of Building 2 to design the new assembly line. No products had been manufactured in Building 2 since 1998. An old GE range assembly line still stood there; after a feud with union workers, that line had been shut down so abruptly that the GeoSpring team found finished oven doors still hanging from conveyors 30 feet overhead. The GeoSpring project had a more collegial tone. The “big room” had design engineers assigned to it, but also manufacturing engineers, line workers, staff from marketing and sales—no management-labor friction, just a group of people with different perspectives, tackling a crucial problem.

“We got the water heater into the room, and the first thing [the group] said to us was ‘This is just a mess,’?” Nolan recalls. Not the product, but the design. “In terms of manufacturability, it was terrible.”

The GeoSpring suffered from an advanced-technology version of “IKEA Syndrome.” It was so hard to assemble that no one in the big room wanted to make it. Instead they redesigned it. The team eliminated 1 out of every 5 parts. It cut the cost of the materials by 25 percent. It eliminated the tangle of tubing that couldn’t be easily welded. By considering the workers who would have to put the water heater together—in fact, by having those workers right at the table, looking at the design as it was drawn—the team cut the work hours necessary to assemble the water heater from 10 hours in China to two hours in Louisville .

In the end, says Nolan, not one part was the same . So a funny thing happened to the GeoSpring on the way from the cheap Chinese factory to the expensive Kentucky factory: The material cost went down. The labor required to make it went down. The quality went up. Even the energy efficiency went up. GE wasn’t just able to hold the retail sticker to the “China price.” It beat that price by nearly 20 percent. The China-made GeoSpring retailed for $1,599. The Louisville-made GeoSpring retails for $1,299.

Source: http://www.theatlantic.com/magazine/archive/2012/1...

The story goes on to mention that they moved a dishwasher line back to Appliance Park. They got a team of factory line workers and engineers together to reimagine the dishwasher line. They said to cut costs where you can but that no one would lose their job from the cuts. The team ended up cutting 35% of the line. Another team was then asked what part of the dishwasher did they want to bring back in house. The 35% were then moved to that line.

I think that the tide is slowly changing as companies realize there is more to manufacturing than just labor costs.


assembled in US of A
By cokbun on 12/6/2012 10:01:00 PM , Rating: 1
assembled in USA... with parts that's made in China




Apple sucks
By semiconshawn on 12/6/12, Rating: -1
RE: Apple sucks
By ClownPuncher on 12/6/2012 12:46:21 PM , Rating: 2
You can't be happy. Ever.


RE: Apple sucks
By semiconshawn on 12/6/2012 1:09:15 PM , Rating: 1
Great family, great jobs for me and wife, one kid doing well at the University the others A's and B's in school. If only I could get over the internet cell phone tablet war my life would be complete. I can only hope Maytag doesnt sue whirlpool I might retreat in to darkness.......


RE: Apple sucks
By bobsmith1492 on 12/6/2012 1:26:53 PM , Rating: 3
Especially since Whirlpool owns Maytag. If they start suing themselves who knows what would happen. :-)


RE: Apple sucks
By Uncle on 12/6/2012 5:05:54 PM , Rating: 2
But but But thats competition in this new age of enlightenment. You just blew it for that guy, all this time he thought differently, that he was living in the American Dream. Antidepression pills are flying off the shelves now.


RE: Apple sucks
By RjBass on 12/6/2012 1:28:39 PM , Rating: 2
No need for law suites with Whirlpool and Maytag. Whirlpool did it the old fashioned American way and just bought out Maytag.


RE: Apple sucks
By Argon18 on 12/6/2012 2:28:02 PM , Rating: 1
What are law suites? Is that where all the lawyers hang out?


RE: Apple sucks
By Uncle on 12/6/12, Rating: -1
RE: Apple sucks
By WW102 on 12/6/2012 1:49:31 PM , Rating: 5
"There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again." —Nashville, Tenn., Sept. 17, 2002

-G. W. Bush


RE: Apple sucks
By retrospooty on 12/6/2012 3:11:24 PM , Rating: 2
Ya, but "he was speaking hispanically" ;)

Another classic Bushism trying to say that someone was speaking Spanish.


RE: Apple sucks
By retrospooty on 12/6/2012 1:51:00 PM , Rating: 2
Awe come on now... I hate Apple as much as the next guy (LOL) but give them some credit. At least this isn't a bad thing. It is a good thing by any measure.


RE: Apple sucks
By hiscross on 12/7/12, Rating: -1
RE: Apple sucks
By Tony Swash on 12/6/12, Rating: -1
RE: Apple sucks
By Uncle on 12/6/2012 5:13:17 PM , Rating: 1
"the product line which is most likely to be made in the US will be the new Mac Pro" I say this without malice. It reads like your going to be at the end of that five block line up waiting to get your hands on that USA produced Mac Pro when it comes out.


RE: Apple sucks
By faust_67 on 12/7/2012 3:00:05 PM , Rating: 1
Well I think I read recently that Samsung sold far more handsets worldwide than Apple. Apple products are not for everybody and competitors have I think a better approach for the future by creating broad lines of smartphones and tablets for all types of consumers. It creates millions of customers who will largely remain faithful to the brand.


RE: Apple sucks
By hiscross on 12/6/12, Rating: -1
"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner

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