Made in The U.S.A. (Apple is next)

[HossHuge]

Apple CEO Tim Cook says the company will move production of one of its existing lines of Mac computers from China to the United States next year.

Industry watchers said the announcement is both a cunning public-relations move and a harbinger of more manufacturing jobs moving back to the U.S. as wages rise in China.

Cook made the comments in part of an interview taped for NBC's "Rock Center," but aired Thursday morning on "Today" and posted on the network's website.

In a separate interview with Bloomberg Businessweek, he said that the company will spend $100 million in 2013 to move production of the line to the U.S. from China.

Source

So Apple, Lenovo and TSMC are all going to be opening factories in the States.

Are prices going to rise but quality be better? Anyone care to speculate as to why they are moving there?

 

[Fourstaff]

Finally making economic sense to bring production back to US, nothing more, nothing less.

 

[Kantastic]

Why wouldn't Apple move manufacturing here? Manufacturing in China is slowly getting more expensive, and Apple is usually very good at being one step ahead of everyone. Plus, it shouldn't be a surprise since Apple already employs more Americans than any other gadget manufacturer combined.

 

[Kaynar]

I doubt that quality will be better. Japan, China and other countries of asia have top-quality products nowadays (ok im not talking about those cheap plastic toys for your kids).

Few obvious reasons to why those companies are opening factories to the US:

-With the petrol prices being extremely high and certain to rise much more, its not convinient to transport large quantities of material (eg packages).
-The wages is Asia are rising continiously.
-The US factories will almost certainly assemble pieces together and package the devices, it wont be full product fabrication. (for Apple and Lenovo)
-For Apple and Lenovo (is this an IBM department?) especially, saying that their products are "Made in USA" is a big marketing plus in 2012, even if its just assembly and packaging while they advertise "our products are made in USA" (that reminds me of other companies in EU (esp Germany) doing this trick).

 

[W1zzard]

I'm quite sure Apple will move _assembly_ to the US. So instead of shipping the final system they will make components in China, like everyone else, and then put them into the computer case in the US. Purely a marketing move.

(that reminds me of other companies in EU (esp Germany) doing this trick).

shipping a TV into Europe = extra tax. Shipping a monitor and a TV decoder unit = lower/no taxes.

 

[FordGT90Concept]

Why wouldn't Apple move manufacturing here? Manufacturing in China is slowly getting more expensive, and Apple is usually very good at being one step ahead of everyone. Plus, it shouldn't be a surprise since Apple already employs more Americans than any other gadget manufacturer combined.

Apple is only moving production of one "Mac" product to the USA and they're doing it as a publicity stunt because of all the bad wrap they're getting from making iPhones in China.

Apple is making profits in the billions of dollars so they can easily afford a $100 million assembly facility in the states. The fact they didn't do it years ago is disturbing.


The reason why TSMC and Lenovo are setting up shop in the USA is the same reason why Nissan and Toyota has: the cost to ship the finished product from China to the USA is going up to the point that higher labor and tax costs make production where the bulk of the product will be sold cheaper.

-For Apple and Lenovo (is this an IBM department?) especially, saying that their products are "Made in USA" is a big marketing plus in 2012, even if its just assembly and packaging while they advertise "our products are made in USA" (that reminds me of other companies in EU (esp Germany) doing this trick).

"Made in USA" must be 50% or more produced in the USA in order for the US government to buy it. Because processors, capacitors, transistors, etc. are predominently made outside of the USA, "Made in USA" is unlikely in the near future. Instead, they say "Assembled in USA" meaning only the final assembly labor is performed in the USA. Systemax already does this with all of their computer products (facility is in Fletcher, Ohio).

 

[HossHuge]

I'm quite sure Apple will move _assembly_ to the US. So instead of shipping the final system they will make components in China, like everyone else, and then put them into the computer case in the US. Purely a marketing move.

From the source I linked.

But he told Bloomberg that the production would include more than just final assembly. That suggests that machining of cases and printing of circuit boards could take place in the U.S.

 

[FordGT90Concept]

Yeah, Apple is going to attempt to push for component manufacturing in the USA which is good news, if it works. This might be why TSMC is building a fab in the USA so it is appealing to Apple (and other OEMs).

 

[HossHuge]

I don't see how this could be making stockholders pleased. This must be cutting into their dividends.

 

[Fourstaff]

I don't see how this could be making stockholders pleased. This must be cutting into their dividends.

Possibly for tax purposes, I am not going to speculate much until we have the profit numbers from the factories.

 

[TheMailMan78]

This is marketing. Nothing more.

 

[3870x2]

This is marketing. Nothing more.

Apple is a terrible company with an excellent marketing team. If it looks like they are doing some good, it is usually quite the opposite.

 

[Kantastic]

Apple is a terrible company with an excellent marketing team. If it looks like they are doing some good, it is usually quite the opposite.

Couldn't agree more. They should be shunned for hiring Americans. Hell, they should be forced to shut down every Apple store, lay off thousands of people, and send customer support to India.

 

[Easy Rhino]

lol @ you guys. seriously you guys just hate anyone who is successful. here is an amazingly successful AMERICAN company bringing back some aspect of their manufacturing to the USA and you still find reason to complain. shame on all of you. go back to your mom's basement.

 

[TheMailMan78]

lol @ you guys. seriously you guys just hate anyone who is successful. here is an amazingly successful AMERICAN company bringing back some aspect of their manufacturing to the USA and you still find reason to complain. shame on all of you. go back to your mom's basement.

Oh please Obama himself asked Apple to bring iPhone Mfg. back to the U.S. and Steve himself said "That aint gonna happen." Why pay Americans 8 bucks an hour when you can pay someone in China 8 bucks a day?

 

[Sasqui]

This is marketing. Nothing more.

I agree... and would classify it as PR. If there was a considerable monetary gain to move MFG to the US, then they'd be investing in a lot more plants.

Look at the Foxconn debaucle, riots and suicides... gives Apple a black eye, so they have to at least give the appearance that they're doing something.

 

[3870x2]

lol @ you guys. seriously you guys just hate anyone who is successful. here is an amazingly successful AMERICAN company bringing back some aspect of their manufacturing to the USA and you still find reason to complain. shame on all of you. go back to your mom's basement.

Their products are not even relatively priced. Look at the Ipad 4 vs Nexus 10, among other products.

Maybe it isn't fair to compare a successful company with good business practices to a successful company with dirty business practices.

In this example, we see that the latter wins, and has an operating budget larger than that of the USA.

 

[Fourstaff]

lol @ you guys. seriously you guys just hate anyone who is successful. here is an amazingly successful AMERICAN company bringing back some aspect of their manufacturing to the USA and you still find reason to complain. shame on all of you. go back to your mom's basement.

No, we just hate hipster companies, so successful ones which has a strong marketing behind it (Razer, Apple, Monster) will be named, shamed and spat on. Nevermind that they have good products worthy of attention every so often.

Oh please Obama himself asked Apple to bring iPhone Mfg. back to the U.S. and Steve himself said "That aint gonna happen." Why pay Americans 8 bucks an hour when you can pay someone in China 8 bucks a day?

Well if you include taxes, automation, greater control, etc. It might make sense, but without seeing what they based their decisions on we can only speculate.

 

[TheMailMan78]

Well if you include taxes, automation, greater control, etc. It might make sense, but without seeing what they based their decisions on we can only speculate.

We have one of the highest cooperate taxes in the world. We also have one of the highest paid populous in the world. I have no idea how this would make sense to open up shop in the US other then marketing. I bet they just assemble AND pack in the US.

 

[3870x2]

I am not sure Monster has any good products. Razer has excellent products most of the time, with the price to match.

With Apple you could buy 2 iPads for the price of one, and they could still profit.

 

[Easy Rhino]

Oh please Obama himself asked Apple to bring iPhone Mfg. back to the U.S. and Steve himself said "That aint gonna happen." Why pay Americans 8 bucks an hour when you can pay someone in China 8 bucks a day?

Is bringing jobs back to the USA a bad thing? If not then shut up and applaud Apple.

Their products are not even relatively priced. Look at the Ipad 4 vs Nexus 10, among other products.

Maybe it isn't fair to compare a successful company with good business practices to a successful company with dirty business practices.

In this example, we see that the latter wins, and has an operating budget larger than that of the USA.

apple products are competitively priced. pc alternatives have to lower their prices dramatically taking a much smaller profit from each sale just to keep stride. if you hate apple's business practices so much then you have to hate intel, microsoft, samsung, and sony. why not complain about them? oh, because it isn't in vogue to do so.

No, we just hate hipster companies, so successful ones which has a strong marketing behind it (Razer, Apple, Monster) will be named, shamed and spat on. Nevermind that they have good products worthy of attention every so often.

stop acting like a spoiled elitist child. apple has strong marketing but they have earned it through superior design and leading the marketplace of ideas for the past 5 years. what have you done with your life other than complain from your mom's basement?

 

[Fourstaff]

We have one of the highest cooperate taxes in the world. We also have one of the highest paid populous in the world. I have no idea how this would make sense to open up shop in the US other then marketing. I bet they just assemble AND pack in the US.

Tax breaks, fancy accounting etc

 

[SaltyFish]

Wasn't this reason (or something very similar) behind the plot in the movie "The Campaign"?

Prices may or may not rise, depending on how much a company "needs" the money. Quality will likely remain about the same. "Made in the USA" and the likes lately are just there to appeal to some peoples' patriotic fervor. Members of the Cult of Apple could not care less where it's made, so long as they get their fix. Everyone else has reason to be wary. There hasn't been any mass market product made in the U.S. that were exemplary in the good way. U.S. cars, anyone?

Shifting end processes from the P.R.C. to the U.S.A. is likely to capitalize on lowered shipping taxes and the larger market in the latter. China has been trying to get its people to buy more goods to keep its economy running since it's been export-based and the rest of the world's economies have gone down the drain, killing demand for products. Amusing that China has the opposite problem of America; its people tend to save to the detriment of economic stimulation instead needlessly spending to the point of economic collapse.

@3870x2:
Monster has those gaudy headphones that pioneered the rapper-endorsed, over-priced, low-quality headphone market. They are a blight on sane, rational people as much as any Apple product.

 

[Fourstaff]

I am not sure Monster has any good products. Razer has excellent products most of the time, with the price to match.

Monster Turbine is their only successful value for money product imo.

stop acting like a spoiled elitist child. apple has strong marketing but they have earned it through superior design and leading the marketplace of ideas for the past 5 years. what have you done with your life other than complain from your mom's basement?

Not acting like one, pointing how most people in the forum behaves like. I strongly believe in economics, and in this world marketing is king. Having some decent products in the lineup helps.

(Side note: did you not pick up hints of sarcasm?)

 

[Sasqui]

you have to hate intel, microsoft, samsung, and sony. why not complain about them? oh, because it isn't in vogue to do so.

Hey! Where the hell have you been? We've been bashing Microsoft and Sony for years. Apple has started a war with it's patent trolling, so they're up to bat now.