Apple's New Mac Pro Won't Be 'Made in USA' as Production Reportedly Moving to China

[handheldgames]

I suspect the CNC costs in the US were too high and they couldn't get a steady supply of cases if orders peaked. Not that I'm an expert, but I suspect it's at least a six-axis CNC unit that's required.

You'd be surprised, US manufacturing costs have become much more competitive over the past 5-10 years. Perhaps Apple is missing the expertise in the USA to manage manufacturing that has been built up like an army in China. Realistically, it comes down to the CEO, aka ex CFO's addiction to Chinese Manufacturing and Labor costs and loose environment restrictions.

 

[0388631]

You'd be surprised, US manufacturing costs have become much more competitive over the past 5-10 years. Perhaps Apple is missing the expertise in the USA to manage manufacturing that has been built up like an army in China. Realistically, it comes down to the CEO, aka ex CFO's addiction to Chinese Manufacturing and Labor costs and loose environment restrictions.

I think you missed the point. Six-axis cost around $150-220,000 each. It would still take more than an hour to CNC each case. You'd need to contract out to dozens or hundreds of professional shops and make sure they adhere to your quality control standards.

For Apple, the price difference may be as much as $200 per case. Or more. Who knows. CNC time isn't cheap even at the cheapest shop. This is a heavy, thick aluminum housing for a steel case.

 

[handheldgames]

I think you missed the point. Six-axis cost around $150-220,000 each. It would still take more than an hour to CNC each case. You'd need to contract out to dozens or hundreds of professional shops and make sure they adhere to your quality control standards.

For Apple, the price difference may be as much as $200 per case. Or more. Who knows. CNC time isn't cheap even at the cheapest shop. This is a heavy, thick aluminum housing for a steel case.

I hear ya. In the big picture, an additional $200 for the 'hallmark' case design in a $6000 the retail/online arm of a vertical corporate entity is peanuts.

 

[willmtaylor]

I hear ya. In the big picture, an additional $200 for the 'hallmark' case design in a $6000 the retail/online arm of a vertical corporate entity is peanuts.

View attachment 845707

Yikes. Remind me NOT to hire you on as my CFO.

 

[goMac]

They probably want to make it in a country that doesn't have issues reliably making screws.

 

[iPadPublisher]

I haven’t posted on MR in what feels like at least a year (maybe even is ACTUALLY over a year). But I felt the need to pop back up from my hole.

This is a huge disappointment to me. I thought, correct me if I’m wrong, that Apple said, after announcing that the trash can Mac Pro would be mfg in the USA, that they were exploring other products to make here. Not less.

I hope they’ll reconsider.

 

[handheldgames]

Yikes. Remind me NOT to hire you on as my CFO.

LOL.. Thanks but that's not something that I'd even consider.

 

[0388631]

Y'all want to take your romantic chit-chat to PMs?

 

[Bug-Creator]

Clearly Tim Apple is more interested in investing in a new manufacturing line in China than supporting manufacturing and/or assembly in Texas, USA.

Mr Apple is interested in investing 0$ in any manufacturing line (for good reasons).

 

[Analog Kid]

This news made me sad. If a company of Apple's stature building expensive, luxury goods cannot keep its manufacturing in the US, what hope does the US manufacturing sector have?

The US makes as much as it ever did:

It’s just using less people to do it:

Which has meant steadily rising wages for manufacturing employees:

Redeploying that labor force to lower productivity work means cutting their wages, either directly or by inflating the cost of manufactured goods so the real value of their wages decreases. That just doesn’t make sense.

Now maybe there’s an argument that it would raise manufacturing employment by bringing in a lower tier of workers— but where would those workers come from? US unemployment is already at historically low rates so they’d have to come from another sector where they are currently under utilized. Maybe there is one, but I’m not sure what it would be...

There was a theory that the cost of transporting finished goods would eventually onshore more manufacturing (which is one of the contributing factors to auto manufacturers basing operations in the US and North America), but fuel prices remain stubbornly low...

 

[flat five]

what hope does the US manufacturing sector have?

small run or one of a kind, custom, creative, high quality.. expensive AF compared to mass produced.

but y’all just want to shop at IKEA instead..

.. if any of you all have the urge to support U.S design/fabrication.. PM me

——
edit— hmm.. maybe i’m talking more about NYC (which used to be a manufacturing powerhouse) instead of the US as a whole.. which still has a decent level of manufacturing..

so if any of you all have the urge to support NYC design/fabrication.. hit me up

 

[patrickbarnes]

A lot of people have no idea how much of a lemon the trash can MP was.

I have two of them and they suffer from all sorts of issues. Random USB disconnections, DP not working properly on wake, USB not recognizing the keyboard is plugged in on bootup, I could go on.

I spent 12k on these lemons.

I’ve had iMacs go for 7-8 years with literally zero problems. I’m glad they’re moving these to Quanta.

Made in the US means nothing. I don’t want to pay the premium and it’s just Foxconn anyway. IDGAF.

 

[AZ63]

Having listened to people who actually played with it and spoke to Apple at WWDC, this new high-end monitor stand is actually an amazing feat of engineering. Yes it's got a healthy profit built in, but these prices are common in its target market.

Perhaps, but did you watch the presentation and the audible gasp given by the audience when the price was mentioned? I almost felt bad for the presenter. He looked at the audience, paused briefly, and then continued like nothing happened.
That might not be exactly what happened, but the price did not go unnoticed.

 

[phrehdd]

I would like to say that an image of myself owning one of these would be a nice thought but China really? Uh, no thanks.

 

[Wando64]

I would like to say that an image of myself owning one of these would be a nice thought but China really? Uh, no thanks.

You might want to check who makes everything else that you own.

 

[kis]

They will have already factored in these savings in costs when setting the retail price.
The new Mac Pro would cost a lot more if it was "Made in the USA"

Or, they could lower their margins by 2-3% and sell it at the same price, without having to collaborate with an evil communist dictatorship. But oh well, the average customer doesn't give a crap anyway.
[doublepost=1561891000][/doublepost]

You might want to check who makes everything else that you own.

That's the lousiest defence of them all. Just because we're now forced to use crap products made in a crap country by underpaid workers and controlled by a communist dictatorship doesn't mean this always has to be that way. If nobody speaks up against these practices, then yes - we'll still all be using Chinese products in the future.
[doublepost=1561891102][/doublepost]

The US makes as much as it ever did:

View attachment 845716

It’s just using less people to do it:

View attachment 845717

Which has meant steadily rising wages for manufacturing employees:

View attachment 845718

Redeploying that labor force to lower productivity work means cutting their wages, either directly or by inflating the cost of manufactured goods so the real value of their wages decreases. That just doesn’t make sense.

Now maybe there’s an argument that it would raise manufacturing employment by bringing in a lower tier of workers— but where would those workers come from? US unemployment is already at historically low rates so they’d have to come from another sector where they are currently under utilized. Maybe there is one, but I’m not sure what it would be...

There was a theory that the cost of transporting finished goods would eventually onshore more manufacturing (which is one of the contributing factors to auto manufacturers basing operations in the US and North America), but fuel prices remain stubbornly low...

The reality is that a huge number of people already work at a minimal wage in the US. Something that would be completely unthinkable in Europe. But yeah - there is PLENTY of low-paid work available in the US.

 

[dumastudetto]

Perhaps, but did you watch the presentation and the audible gasp given by the audience when the price was mentioned? I almost felt bad for the presenter. He looked at the audience, paused briefly, and then continued like nothing happened.
That might not be exactly what happened, but the price did not go unnoticed.

Yes, it was an unforced error to put the price up during a live event with a room full of people who are not the target market for this specific product. It certainly was an awkward moment in an otherwise unbelievably great keynote.

 

[mac_in_tosh]

Personally I find living off another person by having their wealth redistributed to me depressing.

You think "their wealth" was amassed totally by themselves, without the benefit of a stable, secure society that is maintained by large numbers of other people?
[doublepost=1561900271][/doublepost]

Logically, globalization results in the best results because a specific task is done by those with the highest quality and lowest price. That’s a good thing, and the only objection to this is based on superiority and xenophobia.

How about objecting because in some cases those "lower prices" are obtained by enforcement of a repressive regime?

 

[dogslobber]

Yes greedy Tim Cook: keeping costs as low as possible to drive down on prices for customers.

I think you mean drive down the costs for Apple. The price of these things is outrageous to the typical man on the street.

 

[code-m]

You might want to check who makes everything else that you own.

TrashCan MP, designed in California, parts/components mainly from Asia and elsewhere, assembled in USA.

How is it considered Made in USA when it is a global effort. There is little chance something this complex can be 100% Made in USA. It is just to make people feel good.
[doublepost=1561904091][/doublepost]

I think you mean drive down the costs for Apple. The price of these things is outrageous to the typical man on the street.

Not meant for the typical person on the street. Most typical people use a phone, tablet and/or laptop.

Nice machine, just overkill for most. Seems some just want it to edit and render home movies. If it was a legit profitable business the cost would be written off. Even as an education tool for ones studies it may be written-off.
[doublepost=1561904256][/doublepost]

You think "their wealth" was amassed totally by themselves, without the benefit of a stable, secure society that is maintained by large numbers of other people?
[doublepost=1561900271][/doublepost]

How about objecting because in some cases those "lower prices" are obtained by enforcement of a repressive regime?

Standard of living ladder for most people in many countries including China have been climbing. You may not like the politics and it is unfortunate, but most developing countries people are moving up.
[doublepost=1561904335][/doublepost]

Yes, it was an unforced error to put the price up during a live event with a room full of people who are not the target market for this specific product. It certainly was an awkward moment in an otherwise unbelievably great keynote.

That $999 Pro Stand caught everyone off guard tbh.

 

[kis]

TrashCan MP, designed in California, parts/components mainly from Asia and elsewhere, assembled in USA.

How is it considered Made in USA when it is a global effort. There is little chance something this complex can be 100% Made in USA. It is just to make people feel good.
[doublepost=1561904091][/doublepost]

Not meant for the typical person on the street. Most typical people use a phone, tablet and/or laptop.

Nice machine, just overkill for most. Seems some just want it to edit and render home movies. If it was a legit profitable business the cost would be written off. Even as an education tool for ones studies it may be written-off.
[doublepost=1561904256][/doublepost]

Standard of living ladder for most people in many countries including China have been climbing. You may not like the politics and it is unfortunate, but most developing countries people are moving up.

The question is where the labor intensive tasks are completed. Whether a chip machine runs in the US or in China doesn't matter. Whether the parts are assembled by people who get social security, vacation time, weekends off and a salary that allows them to live freely and independently does.

 

[code-m]

Or, they could lower their margins by 2-3% and sell it at the same price, without having to collaborate with an evil communist dictatorship. But oh well, the average customer doesn't give a crap anyway.
[doublepost=1561891000][/doublepost]

That's the lousiest defence of them all. Just because we're now forced to use crap products made in a crap country by underpaid workers and controlled by a communist dictatorship doesn't mean this always has to be that way. If nobody speaks up against these practices, then yes - we'll still all be using Chinese products in the future.
[doublepost=1561891102][/doublepost]

The reality is that a huge number of people already work at a minimal wage in the US. Something that would be completely unthinkable in Europe. But yeah - there is PLENTY of low-paid work available in the US.

It is a complicated problem with a simple solution, however most with no power will like it and the few who won’t have the power to not change a thing.

 

[code-m]

The question is where the labor intensive tasks are completed. Whether a chip machine runs in the US or in China doesn't matter. Whether the parts are assembled by people who get social security, vacation time, weekends off and a salary that allows them to live freely and independently does.

You may be speculating on some levels in your comment. I am not saying that your concerns are not valid, I am saying that there is a level of assumption.

Many developed nation have fought for the things you mention, it improved life for many and to some extent it becomes accepted as the status quo in that society.

In many developing countries prior to these low paying jobs in the view of a developed country is unthinkable. These people fail to understand that these low paying jobs have removed many from poverty, improved their lives and families lives, have become more aware of their surroundings, having an opportunity to get an education. Is China or any other country perfect, no. Has the lives improved for many, yes. Can it get better for all nations, yes. Is it going to change overnight or with the decisions of one company, no.

If you want to see change, buying or not a product will change little unless the masses do so. However realize this that the actions in one place can have an effect in other places. If you or many stop buying a certain product, the company may get the message, stop production in a developing country, thus lowering the standards of living, people slip into poverty, production moves locally using mainly robots and only a few well paid workers, still many unemployed and unable to purchase your product. Company starts to seek cost cutting measures, produces less, fires people, discontinues the product, etc.

You get the point, I hope. These are just possible outcomes.

 

[Wando64]

That's the lousiest defence of them all. Just because we're now forced to use crap products made in a crap country by underpaid workers and controlled by a communist dictatorship doesn't mean this always has to be that way. If nobody speaks up against these practices, then yes - we'll still all be using Chinese products in the future.

First, I’d like to point out I wasn’t making excuses for anything or anyone.

Second, I am sorry that you feel you are forced to buy stuff you don’t like from countries you like even less. Here in the UK we still have choices.

Finally, you might want to take a minute and meditate on the possibility that the concept of “crap products” and “crap countries” can be quite subjective.

 

[Alan Wynn]

Yes, it was an unforced error to put the price up during a live event with a room full of people who are not the target market for this specific product. It certainly was an awkward moment in an otherwise unbelievably great keynote.

Yes, that was exactly what it was. Having looked at it and how it works, I was really impressed. The precision was incredible. I am sure their margin is the same as on other products. Those who have never touched it and say it costs $3 to make are delusional. However, the two valid points are 1) is it worth the price to most (or even a significant number of) purchasers of the display (does not matter if that is what it cost to make, if usersdo not care about the various benefits received from it) and 2) from a marketing perspective, why did they not just include it in the price of the monitor and then offer a discount for those purchasing the display with a VESA mount? Had they done that, it would not have been a focus in 3-4 months when it ships.