Apple's Manufacturing Move

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tech4people
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Re: Apple's Reshoring Move
tech4people   12/29/2012 5:10:46 AM
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Bolaji,

I agree.

Its a great move in more ways than one!

At the same time one can hopefully see this is a beggining of the reversal of a long-term trend?

Ashish.

Himanshugupta
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Re: A patriotic move ?
Himanshugupta   12/28/2012 1:41:03 PM
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@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.

Himanshugupta
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Re: Apple's Reshoring Move
Himanshugupta   12/28/2012 1:35:31 PM
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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.  

Bolaji Ojo
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Re: A Real Valuable Design
Bolaji Ojo   12/28/2012 7:54:28 AM
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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.

Bolaji Ojo
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Re: Apple's Reshoring Move
Bolaji Ojo   12/28/2012 7:52:24 AM
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1 saves

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.

tech4people
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Re: Apple's Reshoring Move
tech4people   12/25/2012 2:28:20 PM
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Wale,

I doubt it that Wages in Manufacturing jobs in the US are much-much higher Than in China today.

Regards

Ashish.

tech4people
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Re: Apple's Reshoring Move
tech4people   12/25/2012 1:40:32 PM
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Bolaji,

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.

Regards

Ahsish.

tech4people
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Re: A Real Valuable Design
tech4people   12/25/2012 3:10:42 AM
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Wale,

Yeah I remember that time exactly!

What do you feel will be the end result if such a Manufacturing Distinction actually happens?

Will the US Manufactured PC outsell the Chinese Product(inspite of Being say 10%-15% costlier???)

Sure could most definitely be the case(if You ask me).

But then eventually word does spread around about the quality or lack of it around different manufacturing centres.

And then the Consumer finally decides.

Regards

Ashish.

 

tech4people
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Re: A Real Valuable Design
tech4people   12/25/2012 2:58:01 AM
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Anna,

I disagree.

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).

Regards

Ashish.

tech4people
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Supply Network Guru
Re: A patriotic move ?
tech4people   12/25/2012 2:54:47 AM
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Wale,

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.

Regards

Ashish.

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