@Clairvoyant, i cant disagree with you on that. It may actually be the way the game has been played closely to the public. But how would Apple's investors perceived the move --- higher wages, taxation and other operating costs? Would the move not impact on the payment of dividends? No matter what, I cant see reasons why the likes of Apple & co not create more jobs especially in US. Yet a good news to supply chain sector though.
I would say it's because of pressure put on Apple to move some manufacturing back to the US. Who knows what kind of deals may be going on in the background between say the government and Apple.
Although it is a nice thought "A patriotic move to create US jobs" the timing is not justified because US economy it is much better as it was before 2 years ago, so why now instead of 2 years before ?
I didn't rule out the possibility of design and assembly in the USA. I'm sure it may eventually happen at some point and over a period of years. The point is at present, America still lacks the skill required to encourage the scale, speed and efficiency Apple placed on its Chinese manufacturing. Apple's strategy is about who can build the greatest number of item in a shortest period.
>>But can it really design and manufacture in the USA?<<
Why not? I could recollect in the 90s when Nokia phone dominates world markets. They were 3 types of Nokia phones then - (1) Made in Finland (2) Made in UK (3) Made in China. The most sought after among the 3 makes was made in Finland.
May be if 1 to 10 reasons are reshuffled, i think moving its manufacturing to US for cost saving would rank lowest, the reverse is the case for manufacturing in China.
Wale, "Designed and Manufactured in the USA" hmmm! Good thoughts. I believe Apple's move is strategic and I applaud that. But can it really design and manufacture in the USA? Apple's executive said "the US has stopped producing the people with the skills we need" In spite of kick starting training, I think America is at present unable to match the scale of production Apple demands from its china assembly plant.
I can't imagine what would happen if at some point Apple is forced to have, in the same market, Macs built in China and in the US... and people start choosing one over the other (based on a different quality or perceived quality).
Perfect timing for Apple to "eliminate Negative PR". Apple's move to return some of its manufacturing business to the USA will certainly add to the continued manufacturing growth witnessed in the USA. The manufacturing sectors have been reported to lead American economy out of the recession. Profits generated from reshoring manufacturing companies alone in 2011 is reported to have increased by 25%. I don't think the likes of Apple would like to miss out. Apple has the clout to make the difference at a time when negative press coverage about the companies activities heightened. Good move!
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.
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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