Apple Bringing Some Mac Production Back to U.S. in 2013

[ctdonath]

Originally Posted by MyMacintosh

Tryna save AAPL from the sell off thats going on. Will it work though?

"The sell off that's going on" has only lasted a few days.
This change in major manufacturing is something that gets planned for years.

With the "Made in USA" markings on new iMacs, it's kinda hard to keep the development completely secret any more.

[AdeFowler]

Originally Posted by hamean

It would have to be a smaller scale product, if it were exclusively manufactured in the US, so I'm guessing Mac Pro.

My thoughts exactly.

[hamean]

I don't remember where I read it, but I know I read an executive from Apple say, it may have even been Cook, that labor cost isn't the overriding factor in moving production over to China as it once was. Because of the quantitative scale of Apple production, the sheer volume is prohibitive to attempt in the US at this time. We're talking 10s of millions of sophisticated units a year with a lengthy assembly process.

Apple couldn't move all their iphone production to the US in the next 3 years, even if they wanted to.

Regardless, I'm encouraged by this move from Cook. This is good news.

[technopimp]

the educational system is not producing the expertise needed for major manufacturing in consumer electronics

Since when were manufacturing jobs a focus of the "educational system"? If he's talking management-type jobs, then I don't think I'd agree with the statement. But if he's talking just hourly assembly-type stuff, I don't think you go to school for a BS in "Factory Assembly". That's what training is for. Do people go to school to work at McDonald's?

[Les Kern]

"the educational system is not producing the expertise needed for major manufacturing in consumer electronics"
That is horses**t, and I can't even believe he said that. But I need to think about WHY he said that. There is always a reason behind every word out of the mouth's of the powerful. Always.
And don't expect any follow-up questions from our "esteemed" fourth estate.

[ghostface147]

So parts made in china (motherboard, memory, hard drives, etc.) are assembled in USA. Got it. Let me know when motherboards, memory, hard drives, and other related items are built here in the US.

[MattSepeta]

Super light weight magical mac pro!

[blodyholy]

Originally Posted by Rocketman

I think it would have to be a headless Mac. Either the Pro or the Mini. With Pros made in Ireland I suspect they will honor that and produce the Mini here.

Rocketman

Yup, I'll hedge on the Mini as well.

[TallManNY]

Would the Mac Pro make sense as a line to be made in the US? It is a fairly small line by units, it is the "big boy" so good for national pride, and it is probably one of the easier to manufacture.

Americans, would you be more inclined to "go pro" if it were made in America?

[LeoCastillo]

I guess this finally confirms that the iPhone glass is made by Corning in Kentucky.
People keep saying iPhones don't use Gorilla Glass...

http://en.wikipedia.org/wiki/Gorilla_Glass

Leo

[bjm2660]

I'm sure that when it arrives--whatever it is--we'll all conclude:

"feels crappier"

[everything-i]

Originally Posted by technopimp

Since when were manufacturing jobs a focus of the "educational system"? If he's talking management-type jobs, then I don't think I'd agree with the statement. But if he's talking just hourly assembly-type stuff, I don't think you go to school for a BS in "Factory Assembly". That's what training is for. Do people go to school to work at McDonald's?

He is talking about engineering skills necessary to design, build and run high volume production lines. The kind of automation necessary to build these devices is very complex and needs well educated highly skilled workers to design build and operate. This type of production engineering skill has all but disappeared from many western countries and is going to take years to get back. As labour in the emerging economies of the east becomes increasingly more expensive it will make more financial sense for companies to start to bring more and more production back but the skilled workers are still needed to make that feasible.

[Arman]

My sentiments with others...Mac Pro seems the most obvious choice.

[Chupa Chupa]

Originally Posted by MyMacintosh

Tryna save AAPL from the sell off thats going on. Will it work though?

Non-factor at this point as far as the stock is concerned. All investors care about are sales and margins.

[barkomatic]

Originally Posted by technopimp

Since when were manufacturing jobs a focus of the "educational system"? If he's talking management-type jobs, then I don't think I'd agree with the statement. But if he's talking just hourly assembly-type stuff, I don't think you go to school for a BS in "Factory Assembly". That's what training is for. Do people go to school to work at McDonald's?

This is true. The manufacturing jobs themselves most certainly aren't performed by highly educated or even experienced workers in that country. However, the problem here is that Apple's contractors won't be able to use the harsh labor practices that are utilized in China. No one is going to work over 40 hours a week without overtime and the assembly staff may even be unionized.

Nevertheless, I think its well worth for Apple to make this effort. The extra expense is nothing compared to the positive PR that at least some Apple products are made in the U.S. It's also not a bad idea to have one foot out the door when it comes to China. The world is an unpredictable place.

[iMikeT]

Excellent news.

I do however, take this with a grain of salt. This is production of a product line that is in decline after all. That is, a decline in the overall desktop and notebook market despite the success of the Mac. I will be far more impressed if Apple were to bring iOS device production back to the US.

[neuropsychguy]

Originally Posted by MyMacintosh

Tryna save AAPL from the sell off thats going on. Will it work though?

Some of the sell off is due to the impending fiscal cliff and the increase in taxes on investment income as a result of the ACA. I like this sell off because it means Apple's stock is available to buy at a good discount.

[Gasu E.]

Originally Posted by hamean

It would have to be a smaller scale product, if it were exclusively manufactured in the US, so I'm guessing Mac Pro.

The logistics pipeline really matters here. Products that involve a high degree of customization relative to volume (Mac Pro) benefit from having final assembly be close to the customer. Products that are highly standardized relaitve to volume (iOS) benefit from having as much assembly as possible done where costs are lowest,

[hamean]

Originally Posted by iMikeT

Excellent news.

I do however, take this with a grain of salt. This is production of a product line that is in decline after all. That is, a decline in the overall desktop and notebook market despite the success of the Mac. I will be far more impressed if Apple were to bring iOS device production back to the US.

Yes, but we have to start somewhere. This makes the most sense at this point. Also, Apple's investing some cash to move production, so I don't think they see this product dissolving in the near or immediate term.

[mbh]

Originally Posted by technopimp

Do people go to school to work at McDonald's?

At the management level, yes. Hamburger University

[rusty2192]

Originally Posted by LeoCastillo

I guess this finally confirms that the iPhone glass is made by Corning in Kentucky.
People keep saying iPhones don't use Gorilla Glass...

http://en.wikipedia.org/wiki/Gorilla_Glass

Leo

This was confirmed in the Jobs biography. The original iPhone was the first to use Gorilla Glass. Corning had the product developed, but nothing to use it on. Until Apple came to them because plastic sucked so bad as a screen.

[ziggyonice]

They're starting with a smaller product line and gradually including all the products.

This makes the reports of iMacs stamped with USA on 'em credible. Sounds like the iMac will be the starter lineup.

Why didn't MR report that story, when 9to5Mac did?

[Michaelgtrusa]

A lot of automation but i'm ok with that.

[the8thark]

"Tim Cook announced one of the existing Mac lines will be manufactured exclusively in the United States next year."
"Apple is spending about $100 million on the effort."

For that small amount of money is has to be the Mac Pro. The smaller number of machines sold would be a good test for this in the USA.

[Mak47]

Originally Posted by technopimp

Since when were manufacturing jobs a focus of the "educational system"? If he's talking management-type jobs, then I don't think I'd agree with the statement. But if he's talking just hourly assembly-type stuff, I don't think you go to school for a BS in "Factory Assembly". That's what training is for. Do people go to school to work at McDonald's?

Steve Jobs made a statement at one point regarding this. Essentially, the problem is that the US education system has gotten really good at producing over-qualified people. For these jobs, they want people with knowledge of the kind of engineering needed to develop and build these products and manage the assembly line processes. These are skills that can be taught at the high school or 2yr trade school level but aren't. If they were, you'd be looking at 35k-50k/yr salary employees.

Instead, if you want a degree in anything similar, you'll be seeking a 4yr+ degree and leaving school with the qualifications (and expectation) to earn 90-120k/yr or more.

This is one of the reasons our college students have so much trouble finding work. Everybody's qualified, but there are only so many of those jobs to go around. Our system corrals everyone into a four year, very expensive program that makes them overqualified, or leaves them behind with nothing more than a high school diploma and totally under qualified.