Tim Cook: Some Mac Production Coming to U.S. Next Year
December 6, 2012 12:15 PM
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Apple CEO Tim Cook
He said it's important to create jobs both abroad and in the U.S.
In an extensive interview with
, 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
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."
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
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."
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RE: So the question is.....
12/6/2012 4:19:08 PM
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.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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