@Bolaji I'm sure you're right about that. Ultimately, businesses decide on a direction based on what they believe will benefit their bottom line. Neowin notes that while there's been quite a bit of buzz generated by Apple's announcement, the fact is that HP has American factories at work already:
This week, HP quietly posted word on its website that it already assembles many of its PCs in the U.S. That includes all of its workstations in a factory in Indiana, as well as 36 percent of its business desktop PCs. HP servers are made in Houston, Texas. HP says, "In 2012, we expect to assemble 2.9 million PC units in the United States."
News.com reports that even some of HP's business EliteBook laptops are assembled in North America, although there's no specific city or state named by HP. And what about consumer PCs? Tony Prophet, senior vice president of operations at HP, states, "We're marginally moving even some consumer PC [assembly] back to North America. Doing less of that in China."
Ariella, To remove that air of cynicism, I could change my vote to say it was a "patriotic decision" by Apple to rescue the US economy (thank goodness they didn't announce this before the US presidential elections!). However, I would be deceiving myself because the reality is that this is a purely business decision. Removing the negative cloud is a business decision.
We appear to be a somewhat cynical lot. The top choice is "to liminate negative PR," followd by "to save cost." Less than 20% consider it "a patriotic move to create US jobs."
An old wise executive I used to know likes to say "You can do good by doing good". I am not sure if this was original to this gentleman Pasquale Pictorio, formerly CEO of STMicroelectronics, but the reality is that Apple could do worse than move some manufacturing to the US at a time it is being pounded in the press for what's happening at plants in China that make products for it.
Gene, I absolutely agree Apple's decision makes business sense. The fallout from its engagements in China and the impact on its public image have taken a toll on the company although this may not be so easily seen considering its roaring sales. The smartest executives know how to anticipate the wind of change and make sure they are ready for it. Apple may not move most manufacturing out of China but it does seem in my opinion to make sense that it shouldn't have all its eggs in one basket.
Gene, I absolutely agree Apple's decision makes business sense. The fallout from its engagements in China and the impact on its public image have taken a toll on the company although this may not be so easily seen considering its roaring sales. The smartest executives know how to anticipate the wind of change and make sure they are ready for it. Apple may not move most manufacturing out of China but it does seem in my opinion to make sense that it shouldn't have all its eggs in one basket.
>>America remains one of Apple's biggest markets. Foxconn has announced that it is working on plans with M.I.T. to "help train Americans" in manufacturing technologies.<<
I think US and/or North America markets will forever be largest base for Apple's products. And for Apple to maintain that - NOT DESIGNED IN US, MANUFACTURED IN CHINA. Rather, people would love to have both - DESIGNED & MANUFACTURED IN US.
It is a good business decision and most likely part of a complex larger strategy between Apple and its major supply chain. Minimum labor rates and social costs in China where most of Apple's products are assembled by Foxconn (Hon Hai) have been increasing annually for years. Labor unrest and suicides at Foxconn has gained international notoriety during recent times. Foxconn's new manufacturing facilities under construction in Chengdu are reported to sport 10 foot high fences around the roofs (to prevent leaps by workers?). America remains one of Apple's biggest markets. Foxconn has announced that it is working on plans with M.I.T. to "help train Americans" in manufacturing technologies. They note that the American engineers would have the opportunity to learn Chinese during their training periods in Taiwan/China. As Sherlock might have said, 'Methinks the game is afoot".
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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