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Old Dec 6, 2012, 10:22 AM   #1
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Foxconn Planning U.S. Expansion Alongside Apple's Push for Domestic Mac Production




Just as Apple CEO Tim Cook has revealed that Apple will be bringing some Mac production back to the United States next year, Bloomberg reports that Apple's manufacturing partner Foxconn is seeking to expand into the country.
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"We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there," Louis Woo, a Foxconn spokesman, said in a phone interview. He declined to comment on individual clients or specific plans. [...]

"Supply chain is one of the big challenges for U.S. expansion," Woo said. "In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China."
Neither Apple nor Foxconn has confirmed that the two companies will be working together on U.S. Mac production, but Cook noted that Apple's $100 million investment in domestic production would involve "working with people".

The moves by Apple and Foxconn to bring production to the United States demonstrate an evolution of the thinking held by Apple until very recently, which comes from a perspective that the U.S. labor force and supply chain simply aren't set up to handle the kind of nimble consumer electronics mass production available in China.
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For Mr. Cook, the focus on Asia "came down to two things," said one former high-ranking Apple executive. Factories in Asia "can scale up and down faster" and "Asian supply chains have surpassed what's in the U.S." The result is that "we can't compete at this point," the executive said. [...]

"The entire supply chain is in China now," said another former high-ranking Apple executive. "You need a thousand rubber gaskets? That's the factory next door. You need a million screws? That factory is a block away. You need that screw made a little bit different? It will take three hours."
With Cook's announcement regarding domestic Mac production for 2013, the company is clearly testing the waters, perhaps with a low volume product like the Mac Pro, but the company faces major challenges if it wishes to bring operations on the scale of iPhone production to the United States.

Article Link: Foxconn Planning U.S. Expansion Alongside Apple's Push for Domestic Mac Production
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Old Dec 6, 2012, 10:25 AM   #2
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Old Dec 6, 2012, 10:25 AM   #3
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Question remains: where are the current "Made in USA" iMacs being made?
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Old Dec 6, 2012, 10:30 AM   #4
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Originally Posted by ctdonath View Post
Question remains: where are the current "Made in USA" iMacs being made?
In the USA.
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Old Dec 6, 2012, 10:32 AM   #5
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So it can be done, after all!
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Old Dec 6, 2012, 10:38 AM   #6
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So it can be done, after all!
It's probably a charity move on the hand of Foxconn to appease Apple.
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Old Dec 6, 2012, 10:32 AM   #7
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It might work for a while. Then unions will come in an destroy it and they will go back overseas.
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Old Dec 6, 2012, 10:36 AM   #8
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It might work for a while. Then unions will come in an destroy it and they will go back overseas.
Unions won't have to come in if the company treats it's people well.

Most workers don't want the hassle of dealing with union rules and fees. However if the employer treats it's people unfairly, then a good, strong union may be needed to secure bargaining rights for workers. Individual workers can't deal with the powerful, wealthy people at the top of corrupt businesses.

Last edited by Jetson; Dec 6, 2012 at 10:41 AM.
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Old Dec 6, 2012, 10:56 AM   #9
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Originally Posted by Jazwire View Post
It might work for a while. Then unions will come in an destroy it and they will go back overseas.
I like how you frame "labor and human rights, a respectable wage, and dignity" as "unions"
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Old Dec 6, 2012, 11:37 AM   #10
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It might work for a while. Then unions will come in an destroy it and they will go back overseas.
Union bosses must be drooling over the prospect of Apple setting up factories in U.S.
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Old Dec 6, 2012, 10:38 AM   #11
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This is exciting to hear. I'm sure there are going to be major challenges. But there's an interesting anecdote from Steve Jobs' biography: he went to Corning to discuss using Gorilla Glass in the first iPhone. Corning at that time had shelved Gorilla Glass decades before because they didn't know how to market it. Jobs wanted them to ramp up production within six months. Corning initially balked, saying it would take much longer. But Jobs kept pushing and Corning delivered. Sometimes the main preventer of success is inertia.

The US is capable of manufacturing, but it will need to be pushed in that direction since so much of our infrastructure has been dismantled (rail lines, for example). Apple has the clout to do it, and possibly help get this country moving again.
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Old Dec 6, 2012, 10:32 AM   #12
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I applaud Tim Cook and Apple's leadership for taking this direction.

I hope that Americans can do as great of a job as the Chinese have.

We need to move these jobs back to the good ole USA. We have too many people out of work.
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Old Dec 6, 2012, 10:33 AM   #13
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Some people dream of robots doing all the work.

Well what will happen to the people who used to do those jobs?

So a few people at the top get to rake in $billions and the rest of us "can eat cake"?
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Old Dec 6, 2012, 10:57 AM   #14
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Originally Posted by Jetson View Post
Some people dream of robots doing all the work.

Well what will happen to the people who used to do those jobs?

So a few people at the top get to rake in $billions and the rest of us "can eat cake"?
Those people will be trained to maintain and program the robots used for assembly.
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Old Dec 6, 2012, 11:32 AM   #15
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Originally Posted by Jetson View Post
Some people dream of robots doing all the work.

Well what will happen to the people who used to do those jobs?

So a few people at the top get to rake in $billions and the rest of us "can eat cake"?
You will be baked. And then there will be cake.
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Old Dec 6, 2012, 10:35 AM   #16
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Question remains: where are the current "Made in USA" iMacs being made?
Assembled*, Parts are still made in China.
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Old Dec 6, 2012, 10:40 AM   #17
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Assembled*, Parts are still made in China.
Designed in California.
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Old Dec 6, 2012, 11:03 AM   #18
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Assembled*, Parts are still made in China.
Actually, the parts are made all over the place. China, Japan, the U.S., even some in Europe.
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Old Dec 7, 2012, 07:10 AM   #19
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So they're coming to America?!

http://www.youtube.com/watch?v=pKYl6y8qGqw
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Old Dec 6, 2012, 10:37 AM   #20
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Originally Posted by ctdonath View Post
Question remains: where are the current "Made in USA" iMacs being made?
it isnt made in usa its Assembled in the USA.....Mostly Customer configured just like in Ireland for the Europe market.
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Old Dec 6, 2012, 11:01 AM   #21
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Question remains: where are the current "Made in USA" iMacs being made?
Canada.
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Old Dec 6, 2012, 11:04 AM   #22
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Lets just hope other companies “copy” Apple like they do with so many other things.

Lets keep in mind that Google announced they would be making their boxset top or something like that here about 6 months ago too.
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Old Dec 6, 2012, 11:10 AM   #23
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Originally Posted by ctdonath View Post
Question remains: where are the current "Made in USA" iMacs being made?
There have been some reports of some on this site.

It must be part of Tim's quiet initiative to see how viable it can be.
Unless they can robot assembly line automate a lot of the process I don't see how higher wage US staff could compete with China staff for profitability in the manufacturing line.
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Old Dec 6, 2012, 11:52 AM   #24
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Originally Posted by ctdonath View Post
Question remains: where are the current "Made in USA" iMacs being made?
9to5Mac reporting that the iMacs are being made in Fremont, CA.

MR has been doing a poor job of reporting this. 9to5Mac has been running circles around MR lately.
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Old Dec 6, 2012, 05:36 PM   #25
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Originally Posted by ctdonath View Post
Question remains: where are the current "Made in USA" iMacs being made?
USA
Some are made in the US, just not all. My 2008 Mac Pro is a US-made computer.

I'm glad they're shifting to USA production not because I'm some kind of anti-global market person but because Chinese labor is virtual slavery. It's stupid how American labor laws and taxes can be sidestepped so easily by hiring in a different country. Hopefully, USA politicians will lower corporate taxes to encourage USA production instead of scaring everyone away to China.

----------

Quote:
Originally Posted by Bruce Oksol View Post
will set up production in a right-to-work state?
Right-to-work is such a win! Anything that angers unions is typically great. Any cut-the-BS politician is always opposed by unions. I'm not saying that unions have no purpose, but they do plenty of harm.
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