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The New York Times today printed an interesting article exploring how Apple co-founder Steve Jobs set up a Macintosh manufacturing plant in Fremont, California in the 1980s that failed early on into its tenure.

Titled "When Apple Was Homegrown," the piece by John Markoff offers an insight into Jobs' fascination with Henry Ford's mass automobile manufacturing in Detroit and the high-quality manufacturing capabilities of Japanese companies like Sony, and how Jobs aimed to synthesize the two cultures in a "highly automated" Mac factory.

terence-mccarthy-new-york-times-old-mac-manufacturing-plant-in-california-800x533.jpg
Apple's ill-fated California Macintosh facility (Credit: Terrence McCarthy for NYT)
"Steve had deep convictions about Japanese manufacturing processes," recalled Randy Battat, who joined Apple as a young electrical engineer and oversaw the introduction of some of the company's early portable computers. "The Japanese were heralded as wizards of manufacturing. The idea was to create a factory with just-in-time delivery of zero-defect parts. It wasn't great for business."
Construction of the plant, located just across San Francisco Bay from Apple's headquarters, began in 1983. The first reporters to tour it were told that factory labor would account for 2 percent of the cost of making a Macintosh, thanks to its state-of-the-art production line. Expectations were therefore high, but the practical realities of working at the plant were markedly different.
Mr. Gassée, a French specialist in office automation, had just been promoted to president of Apple's product division by John Sculley, then Apple's chief executive, and was responsible for the company's engineering and manufacturing work. When he first started, Mr. Gassée decided to spend two days learning how the company actually built its products by working on a factory production line.

[...]

"I embarrassed myself attaching a display to the computer bezel with a screwdriver," Mr. Gassée recalled in a recent interview. At the end of his shift, Mr. Gassée grabbed a broom and swept up the parts that had fallen off the production line. "It was really shameful," he said of the noticeably slipshod process.
Lacking the requisite schooling and subcontractors, Apple's Macintosh manufacturing in California was unable to reach the production volume that Jobs had envisioned. Eight years later, the plant was shuttered.

Jobs made a second attempt to establish a manufacturing culture in Silicon Valley shortly after leaving Apple. In 1990 he oversaw another $10 million plant to build his Next personal workstation. The facility featured robotic devices, but it too was unable to produce in quantities that would support a long-term assembly operation, and it failed just like its Apple predecessor.

Jobs' thinking on manufacturing had changed by the time he returned to Apple in 1997, and the next year he hired veteran supply chain overseer Tim Cook as Apple's senior VP for worldwide operations. Apple's manufacturing outsourcing quickly expanded to form a sprawling ecosystem of global suppliers.
"When I started my career, all my flights were to Japan," said Tony Fadell, one of the hardware designers of the iPod and iPhone at Apple. "Then all my flights went Korea, then Taiwan, then China."
Aside from specialist operations like the Mac Pro facility in Austin, Texas, the vast majority of Apple's manufacturing takes place outside of the U.S. Indeed, in recent years under Cook's watch as CEO, Apple's complex web of global suppliers has boomed in response to the demand of making products like the iPhone for mass markets. "You can't bring manufacturing back because of those webs," said Andrew Hargadon, a former Apple product designer who worked on the Macintosh Powerbook Duo in the early 1990s. "You would have to bring the entire community back," he told Markoff.

Recently, Apple announced plans to build a new $1 billion campus in Austin, Texas, as well as plans for a general expansion of operations over the next three years in cities across the United States. The plans are expected to create thousands more jobs, although the large majority of them aren't thought to be in manufacturing. Apple says it is on track to create 20,000 jobs in the U.S. by 2023.

Interested readers can find John Markoff's full New York Times article online but with the alternative headline, "Apple Computers Used to Be Built in the U.S. It Was a Mess."

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: New York Times Article Explores Apple's Failed Attempt to Build the Macintosh in California
 

swingerofbirch

macrumors 68040
The article is missing info that Macs were still made through 2000 in Elk Grove, California—including the iMac.

And that facility is now used for Apple distribution (it's a mix of Apple employees and temp workers now).

Along with the fact that there is (was?) still some Mac final assembly in the US, specifically of the Mac Pro. But kind of hard to imagine there's many Mac Pros being assembled anymore.
 
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Southern Dad

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May 23, 2010
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When I hear that things can't be manufactured in the USA, and I see companies moving their assembly outside of the country, I have to wonder what Lenovo knows that we do not. They assemble computers in the USA. Not all of them, but some.

What about in the automobile industry? While Ford and GM are sending their assembly outside of the USA, there are companies like Honda, Kia, Hyundai, BMW, Mercedes, and VW that assemble cars right here in the USA. What is different for those companies?

Could it be where they locate their production facilities? Just tossing this out there but Steve Jobs opened his factory in California. That's not a real corporate friendly climate. Would it have been more successful if it had opened in Texas, away from a major city? In North Carolina like Lenovo?
 

Moonjumper

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Jun 20, 2009
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Lincoln, UK
Apple may have been ahead of the times with attempting such highly automated manufacturing. Manufacturing keeps moving to where the cheapest workforce is. That may change when a workforce isn’t required to make goods.

Apple has it’s most high value jobs in America, such as design and R&D, the roles most likely to survive the upcoming changes.
 

gigapocket1

macrumors 68020
Mar 15, 2009
2,359
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When iPhones etc is assembled by robots. China is the one that will lose, not USA.
But then China will do something that protects their country, where a certain amount of the product has to be assembled in China, similar to what Taiwan (I think it’s Taiwan) does.
 

cosmichobo

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May 4, 2006
976
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I could be totally wrong, but my understanding is that in order to have the levels of staffing required to produce the devices, yet have wages sufficiently low for the goods to be saleable, you need to set up in these countries were people are paid a pittance for their work.

If you set up the same facility in the US, wages would push the price of an iPhone up massively. I'll be curious to see how long the Mac Pro remains USA-built.

The company I work for makes kids luggage / accessories. They are all done in China. I know my boss did look at local manufacturers, but the pricing was all multitudes higher.
 

frumpy16

macrumors 65816
Dec 8, 2008
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When I hear that things can't be manufactured in the USA, and I see companies moving their assembly outside of the country, I have to wonder what Lenovo knows that we do not. They assemble computers in the USA. Not all of them, but some.

What about in the automobile industry? While Ford and GM are sending their assembly outside of the USA, there are companies like Honda, Kia, Hyundai, BMW, Mercedes, and VW that assemble cars right here in the USA. What is different for those companies?

Could it be where they locate their production facilities? Just tossing this out there but Steve Jobs opened his factory in California. That's not a real corporate friendly climate. Would it have been more successful if it had opened in Texas, away from a major city? In North Carolina like Lenovo?
Also, HP "Z" workstations are made in Indianapolis, Indiana by Foxconn. They're pumping them out from there too. Foxconn is also building a giant display factory between Chicago and Milwaukee. So "Made in the USA" can certainly work.
 

s2mikey

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Sep 23, 2013
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When I hear that things can't be manufactured in the USA, and I see companies moving their assembly outside of the country, I have to wonder what Lenovo knows that we do not. They assemble computers in the USA. Not all of them, but some.

What about in the automobile industry? While Ford and GM are sending their assembly outside of the USA, there are companies like Honda, Kia, Hyundai, BMW, Mercedes, and VW that assemble cars right here in the USA. What is different for those companies?

Could it be where they locate their production facilities? Just tossing this out there but Steve Jobs opened his factory in California. That's not a real corporate friendly climate. Would it have been more successful if it had opened in Texas, away from a major city? In North Carolina like Lenovo?

Good points. I know with cars the major hang up with making cars here is that the UAW is a huge cost burden for GM, Ford, etc and Toyota, Kia, etc do not/will not use union labor. They pay good wages/benefits but the avoid the union bloat which saves a ton of money. And Im sure that location has something to do with it too.

As for computer stuff? I believe Apple is a tad greedy here anbd could easily build everything in the USA. Sure, some profit would have to be used for this but why should shareholders be first? I hate that. Didnt used to be that way. Companies used to tke care of employees first, customers second and then shareholders got theirs. Thats how it ought to be. But, Wall Street blood-suckers ruined it. Its never enough profit or money. Ever.
 

sl1200mk2

macrumors 6502
Oct 17, 2006
320
3
I’ve been in the building that was the original manufacturing facility many times. It’s now a Datacenter for Hurricane Electric (their Fremont 2 facility). It still has some leftovers from Apple including markings in the floors (basically painted lines of different types) that the early automated carts used for guidance. It’s pretty cool walking around there knowing the history of the building.
 
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az431

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Sep 13, 2008
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When I hear that things can't be manufactured in the USA, and I see companies moving their assembly outside of the country, I have to wonder what Lenovo knows that we do not. They assemble computers in the USA. Not all of them, but some.

What about in the automobile industry? While Ford and GM are sending their assembly outside of the USA, there are companies like Honda, Kia, Hyundai, BMW, Mercedes, and VW that assemble cars right here in the USA. What is different for those companies?

Could it be where they locate their production facilities? Just tossing this out there but Steve Jobs opened his factory in California. That's not a real corporate friendly climate. Would it have been more successful if it had opened in Texas, away from a major city? In North Carolina like Lenovo?

Apple is assembling computers in China instead of the US despite the fact that it can be done in the US for the same or less money? So what is your theory? That they like the extra complexity of a supply chain that is 10,000 miles long? They hate America? They're too stupid or lack the knowledge required to build a plant in the US?

First, cars and iPhones have similar percentages of US vs foreign-made goods. The fact that one is assembled here and the other in China does not mean anything.

The difference between car companies and electronics is the level of skill required to assemble them and the percentage of manual vs automated assembly. Bolting together steel parts with 1/4" bolts is not the same as assembling a glass and aluminum phone with screws that are barely visible to the human eye. For that reason, most of the electronics in cars are not made in the US, and likely never will be.

In addition, shipping cars is a lot more expensive than shipping phones, and the shipping cost accounts for a far greater percentage of the overall cost. The cost of shipping a car here from Japan or Europe can be 10% or more of the price of that car, where on a phone the shipping costs is maybe 1%.
 

Scooz

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Apr 9, 2012
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So, Americans can only handle large screws and things better have to be glued or welded, while unfocused Californians keep dropping things on the floor and sweep it together with a broom afterwards.

There surely is no future for US-based manufacturing.
 
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az431

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I believe Apple is a tad greedy here anbd could easily build everything in the USA. Sure, some profit would have to be used for this but why should shareholders be first? I hate that. Didnt used to be that way. Companies used to tke care of employees first, customers second and then shareholders got theirs. Thats how it ought to be. But, Wall Street blood-suckers ruined it. Its never enough profit or money. Ever.

Companies never took care of employees first, and if a company put employees ahead of shareholders that would be a breach of their fiduciary duty to those shareholders. Moreover, maximizing profit is putting employees first (most companies don't stay in business long by minimizing profit simply so they can hire more employees). If you owned a business I doubt you would follow your own absurd logic.
 

Kaibelf

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Apr 29, 2009
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NYTimes talking down on American manufacturing... what a surprise. Their Chinese investors must be so happy.

Why falsely talk up something? Sorry, no participation ribbons here.
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I believe Apple is a tad greedy here anbd could easily build everything in the USA. Sure, some profit would have to be used for this but why should shareholders be first?

Because shareholders put up the money at a risk of losing. If Apple went under shareholders also likely would be among the last to recoup anything. If you want it to be different, put up your own money instead, buy enough of the company to make demands, and then change things.
 

Piggie

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Feb 23, 2010
9,175
4,104
Sounds exactly like our boss

SHOUTS about how easy your job is, and how, if you can't do it, he can always get someone else who can.
Yet whenever he tries anything manual himself, he's totally useless and messes everything up, and then blames it on someone else.

Yet he has his own reality distortion field and believes he is always right and literally everyone else is an idiot.
 

joueboy

macrumors 68000
Jul 3, 2008
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I do believe that if SJ was still alive he would have fought for some of the production to be brought here in the US especially for the Macs. With the success of Musk ability to improve production that would be a challenge for Steve to show that he can do it as well.
 

DVD9

macrumors 6502a
Feb 18, 2010
817
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"the Mac Pro facility in Austin, Texas"

How many years has it been since Apple sold a Mac Pro? It's going on six years since it was updated. At most the base model is worth a thousand dollars but the price is three times that. Tim Cook is an enemy of "America First" as is the New York Times.

This is why Trump's corporate media coverage is universally negative. Trump's inauguration speech was short and to the point and represented everything the "American" corporate establishment opposes.
 

jjhny

macrumors 6502
Sep 16, 2005
256
948
More of the 'siren song' of Globalism from the New York Times. What a surprise. American manufactured goods are considered the best. It's just that we don't pay slave wages. So no obscene profits for the upper executive team. And Tim is an expert in slave labor - that's where the profits are.
 

Kaibelf

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Apr 29, 2009
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A.K.A Apple is too cheap to pay factory workers in America.

Oh please. Who made the clothes that you are wearing, and why didn’t you pay more to make sure it was from America end to end? If you want to see why businesses try to cut costs look in the mirror, and then turn it around and see where THAT was manufactured and think about why you bought the less expensive one.
 
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