Apple to build some Macs in the US starting in 2013

Apple CEO Tim Cook has announced in a new interview with Bloomberg and NBC that Apple is investing $100 million domestically to return some of the company’s manufacturing back to the United States.

Seeing as Apple does not own any manufacturing plants in the U.S., it will be partnering up with an unnamed company to help build up the local infrastructure. Cook stated that several new Macs will be built locally, starting in 2013.

This move is a significant shift from Apple’s traditional manufacturing based in China. In fact, Cook was one of the proponents that helped Apple move and streamline its manufacturing operations overseas. Seeing that Cook now wants to bring the jobs back home is a welcomed sign for our economy as Apple’s dollars will now be kept within the U.S. rather than being shipped overseas.

The move will be a strategic shift for Apple and one that you can bet many other companies will be watching closely. The big argument for shipping manufacturing jobs to China is cost savings. If Apple can prove that it can build products locally, for a competitive rate, we may see a shift in the entire market.

If Apple can make this work, besides the public image appeal, it could boost the recent trend of on-shoring for the U.S. market.

Source: Bloomberg, NBC

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New Macbook Pro

2000 for the regular version
2500 for the Made in USA version.

Sound fine and most people will pay an extra for a cellphone made in USA instead of China.

For example, years ago,i purchased a Nokia Made in Finland over the Made in Asia even when it cost a bit extra. Why?, because the quality and the resale price.

I f'n hate Apple but this is a good thing for them. Maybe eventually get manufacturing out of the cheap labor sweat shops of 3rd world countries. While those people are probably happy to have a job they should be treated humanly and they obviously aren't considering the suicide rate.

This is a dumb move.
It will lower profit margins to have assembly done by American workers.
The culture in US is not what it was in their manufacturing peak.

They'll be lucky if they can even find enough staff who want the job working under their stringent quality control standards.

Probably wind up importing foreign workers.

Heck they should build in Canada where we can legally import temporary workers and pay them 15% less than domestic workers.

With Apple's premium pricing (that they have somehow got the public to accept as fair), they have the wiggle room to do this without changing the headline rates, and gain lots of reputation points along the way. Other manufacturers with tighter margins may find it more difficult to do the same.

This is very interesting, two things come to mind:-

1) What exactly does "return some of the company's manufacturing" actually mean? Are they simply increasing some of the final assembly of products in the US or are they actually gathering the tooling expertise (albeit with a US partner(s)) to manufacture new parts?

2) Unless they are also looking to lose money on products to keep prices roughly the same, doesn't this change in manufacturing strategy ultimately mean that costs for products will go up? If they don't increase prices and Apple absorbs the higher manufacturing costs, then surely Apple customers will know they were getting ripped off all along. And since Apple traditionally charges a premium for its products, I suspect this might just work.

CtrlShift said,
This is very interesting, two things come to mind:-

1) What exactly does "return some of the company's manufacturing" actually mean? Are they simply increasing some of the final assembly of products in the US or are they actually gathering the tooling expertise (albeit with a US partner(s)) to manufacture new parts?

2) Unless they are also looking to lose money on products to keep prices roughly the same, doesn't this change in manufacturing strategy ultimately mean that costs for products will go up? If they don't increase prices and Apple absorbs the higher manufacturing costs, then surely Apple customers will know they were getting ripped off all along. And since Apple traditionally charges a premium for its products, I suspect this might just work.

Maybe the shipping cost is cheaper on components compared to assembled products. Or they just got a huge tax cut.

I would love to start seeing a program like "buy American", what ever that means these days.

the federal government should only be allowed to purchase devices 100% manufactured in the US.

flame away

red hook said,
I would love to start seeing a program like "buy American", what ever that means these days.

the federal government should only be allowed to purchase devices 100% manufactured in the US.

flame away

Nah, too easy.

GS:mac

red hook said,
I would love to start seeing a program like "buy American", what ever that means these days.

the federal government should only be allowed to purchase devices 100% manufactured in the US.

flame away

Then the federal goverment could not buy anything. I guess it cuts the deficit thou.

This is a good move on Apple's part, but I wonder if by paying US workers the prices of their products will increase. Of course, the way they charge for additional RAM on their machines makes me wonder how you could possibly justify more that $200 for an extra 4 GB.

devHead said,
This is a good move on Apple's part, but I wonder if by paying US workers the prices of their products will increase. Of course, the way they charge for additional RAM on their machines makes me wonder how you could possibly justify more that $200 for an extra 4 GB.

Everyone and their donkey knows that you don't buy RAM from Apple.
Doesn't make it better, and on some models you have no choice, which is despicable, but just mentioning that even among Apple fans this is the biggest laugh and everyone can agree in terms of RAM at least, Apple is overpriced as fu**.

GS:mac

devHead said,
This is a good move on Apple's part, but I wonder if by paying US workers the prices of their products will increase. Of course, the way they charge for additional RAM on their machines makes me wonder how you could possibly justify more that $200 for an extra 4 GB.

gold plated heat spreaders? err I mean gold looking painted ah still it looks like gold therefore more money... they use gold right? *whistles*

Glassed Silver said,

Everyone and their donkey knows that you don't buy RAM from Apple.
Doesn't make it better, and on some models you have no choice, which is despicable, but just mentioning that even among Apple fans this is the biggest laugh and everyone can agree in terms of RAM at least, Apple is overpriced as fu**.

GS:mac

I don't doubt for 1 second that Apple sells their RAM in comfortable numbers... all they need is 'that rich guy' who doesn't really have a clue but wants a maxed out mac.. sure he could walk into another shop and have it done for a fraction of the price, but they probably don't care/dont know

devHead said,
This is a good move on Apple's part, but I wonder if by paying US workers the prices of their products will increase. Of course, the way they charge for additional RAM on their machines makes me wonder how you could possibly justify more that $200 for an extra 4 GB.

The price should have been lower from the beginning because of lower manufacturing cost in China. Justification for manufacturing overseas is that consumers benfit by paying lower prices and more money in their pocket for rest of the economy.

Their markup should cover the increase in manufacturing cost done in US, and the quality should be better.

virtorio said,
While their RAM prices are expensive, "$200 for an extra 4 GB" is double what it actually costs.

Now it is, since their MacPro comes with 6 GB standard. Of course, to add a mere 2 GB more costs an additional $75. Considering 2 GB of RAM should cost about $12-15 (Kingston and Crucial DDR3), that's still a ridiculous ripoff. So, several months ago when I looked their standard MacPro came with 4 GB and you could double it to 8 GB for $200. Now, it's 6 GB, and to double it to 12 GB costs $225! The same kind of memory on Newegg costs between $40-70 dollars. The most expensive 6 GB of RAM you can buy there is the Corsair Dominator PC3 12800 for $80.

That's why I will never, ever buy anything from that no good, overpriced, swindling company called Apple.

grabageek said,
At the end of the day any company that works to either create or keep jobs within there own country deserves praise.

NOT APPLE!!!! I'm sure Neowin members will find some way to bring the article down a notch.

Uplift said,

NOT APPLE!!!! I'm sure Neowin members will find some way to bring the article down a notch.


down a notch?
Lovely unintended (?) pun!

GS:mac

Glassed Silver said,

LOL

That sentence is thrown at literally any Apple news these days, it's just ridiculous.

GS:mac


You are probably right, since Apple has never done (and will never do) anything bad/wrong... o.O

ir0nw0lf said,

You are probably right, since Apple has never done (and will never do) anything bad/wrong... o.O

Certainly... every apple product since the ipod is the best out there.
no sarcasm here

iguanas said,

Certainly... every apple product since the ipod is the best out there.
no sarcasm here

Highly subjective and opinionated statement not entirely factual, but you are certainly entitled to it, a lot of the universe is a free speech zone.

But the hardware's still made in other countries, right?

I'm still fearing whether they'll transition away from Intel and start using their own CPU/GPU's like they did the iPhone.

Mr.XXIV said,
But the hardware's still made in other countries, right?

I'm still fearing whether they'll transition away from Intel and start using their own CPU/GPU's like they did the iPhone.

aw, common, Mac Users can't handle yet another architecture change?...... If apple did that I could see them ditching OSX all together and just making iOS the main OS then they could just say well OSX is "antiquated" tech even though it isn't

neufuse said,

aw, common, Mac Users can't handle yet another architecture change?...... If apple did that I could see them ditching OSX all together and just making iOS the main OS then they could just say well OSX is "antiquated" tech even though it isn't


OS X is the base for iOS.
Also, as opposed to some other big OS producer *phew* they know that bringing functionality from a mobile platform doesn't mean you have to cripple the experience on the desktop.

GS:mac

Mr.XXIV said,
But the hardware's still made in other countries, right?

I'm still fearing whether they'll transition away from Intel and start using their own CPU/GPU's like they did the iPhone.


As a twenty some year Mac user I would say this has been in the works for a while now. If you look at what has been happening for the past couple years one can see this happening.
With Launchpad and the App store being added into OS X (where do you think MS got the idea).

Glassed Silver said,

OS X is the base for iOS.
Also, as opposed to some other big OS producer *phew* they know that bringing functionality from a mobile platform doesn't mean you have to cripple the experience on the desktop.

GS:mac


But the desktop is still there in Win8...