@Clairoyant, i do not think Apple needs to prove that they are patriotic as its a global company now. But there must be some government incentives. This move has bear fruits as Foxconn and TSMC are planning to put some manufacturing units in USA to attract Apple and other companies.
Bolaji, although i am not sure whether Apple needed positive PR but for sure this year has not been great for Apple. A very big loss of Jobs and then lots of negative PR (foxconn, maps, Samsung legal fight). So, your point of killing two birds with one shot has some weight. Though the number of direct job that Apple will create will not be that significant but they have been hailed as patriotic and putting pressure on others to follow suit.
Not to mention Apple sells more than 50 percent of its products nowadays outside the US nowadays. It may be based in the US but it is a global company.
I see some merit in your reasoning but we are talking about the post-Jobs Apple here. Look at many of the moves Tim Cook has made and you'll see a tendency not to ignore the public, suppliers, etc. Jobs made it clear he didn't care much what most people outside the company thought and that often included Apple customers.
More relevant to your argument, though, is the fact that Apple is merely moving a fraction of production back to the US. A supply chain that was designed without the redundancy that you talked about cannot be simply retooled to add assurance and guarantees of production continuity by tacking on PC assembly. That's all that will be done at this plant and the move also came at a time of heightened interest in whether US-headquartered companies care at all about high unemployment numbers at home.
Apple long made the case that it is creating and has created directly or indirectly hundreds of thousands of jobs in the US. That position is not holding water anymore when most eyes are focused on manufacturing jobs and the company is touting design engineering or Apple Store customer service positions.
Even if I am being cynical, Apple is killing two birds with one stone here and that's great PR, if you asked me.
You sure this was the main reason why Apple decided to make this Move?
I don't think so.
Rather I feel it has more to do with cutting Risk in their Supply Chain[Putting All your eggs in one basket as you put it] & also to cope with rising Wage Pressure in China.
While in America,Wage Pressure is practically non-existent[Thanks to severe unemployment];Chinese Employment numbers are much better so they are much more easily able to demand(&recieve) Higher wages.
Its really amazing today most Entry Level Grads in the US are ready to work at Wages which are very-very close to Mid-level Managers in the Leading Outsourcing countries Globally.
This stuff is extremely critical and can't be discounted.
Most High-Tech Manufacturing today is starting to get heavily automated.
In that sceanario it hardly matters whether the plant is based in the US or in China[costs will be similar].
The way I see it,the bigger issue for any manufacturer should be location to markets[As close as possible] and other surrounding infrastructure(including Taxbreaks and Cheap Electricity).
It all depends which country you are comparing the US to.
If you mean China;I don't think there is much difference in Either Wages or Taxes between the US and China today.
The major thing that lot of people in the US miss is that because Unemployment today is so High in America;Employers have major bargaining power when it comes to Wages[And nobody accedes to collective action clauses] ;also most States Offer a lot of Taxbreaks as well as other related Infrastructure[Like Trained Manpower,Cheap Electricity,Promotions,etc] for really good and competitive rates.
Lets not forget its not just about Cheaper labor today.
The Surrounding Infrastruture and also the High Price of Crude Oil (and relatively cheap price of Natural Gas in America) are also very significant factors.
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.
To save this item to your list of favorite EBN content so you can find it later in your Profile page, click the "Save It" button next to the item.
If you found this interesting or useful, please use the links to the services below to share it with other readers. You will need a free account with each service to share an item via that service.
Tweet This
