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Apple CEO Tim Cook On Apple's US Manufacturing Move

timothy posted about a year and a half ago | from the tim-who?-oh-yeah dept.

Businesses 266

We mentioned a few days back the "Assembled in America" tag showing up on some models of Apple's iMac. Nerval's Lobster points out that in a new interview with Bloomberg Businessweek, Apple CEO Tim Cook offered some details on what that means: "'Next year we are going to bring some production to the U.S. on the Mac,' Cook told the magazine. 'We've been working on this for a long time, and we were getting closer to it. It will happen in 2013. We're really proud of it. We could have quickly maybe done just assembly, but it's broader because we wanted to do something more substantial.' He also had comments about Android and current litigation against Samsung and others."

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Smart PR move (5, Insightful)

Anonymous Coward | about a year and a half ago | (#42204693)

It may reduce their margins (minutely), but it will give them an immediate response to any allegations of massive offshoring of labor or anti-American sentiment. It's a relatively small investment for them that could pay tremendous returns. Smart, Apple, very smart.

Re:Smart PR move (5, Informative)

Dupple (1016592) | about a year and a half ago | (#42204725)

May be related? (2)

bobstreo (1320787) | about a year and a half ago | (#42204821)

http://www.reuters.com/article/2011/08/01/us-foxconn-robots-idUSTRE77016B20110801 [reuters.com]

No Assembly jobs, just robot repair and janitors.

Re:May be related? (0)

Anonymous Coward | about a year and a half ago | (#42204907)

Yup

http://www.despair.com/made-in-usa-by-robots.html

Re:May be related? (1)

Anonymous Coward | about a year and a half ago | (#42205107)

But are the robots made in the USA?

Re:May be related? (4, Insightful)

master5o1 (1068594) | about a year and a half ago | (#42205679)

But are the robots made by robots made in the USA?

Re:May be related? (1)

net28573 (1516385) | about a year and a half ago | (#42205749)

And were the tools that made those robot's components made in the USA?

Re:May be related? (2)

Dupple (1016592) | about a year and a half ago | (#42205627)

Foxconn Chairman Terry Gou, who founded the maker of iPhones, iPads, PlayStations and televisions in Taipei 38 years ago, wants to bring U.S. engineers to Asia to train them in manufacturing before deploying them back home, he said at a forum last month.."

http://www.bloomberg.com/news/2012-12-06/foxconn-plans-american-expansion-as-clients-seek-made-in-u-s-a-.html [bloomberg.com]

What would you have preferred to see? (5, Interesting)

Brannon (221550) | about a year and a half ago | (#42205095)

Here are your options:

1. Manufacturing in the USA, with manufacturing using robots, creating low thousands of well-paid jobs for Americans.

2. Manufacturing in China using hundreds of thousands of low-paid Chinese jobs.

3. Manufacturing in the USA without robots, but with hundreds of thousands of minimum-wage part-time jobs--and all Apple products increase in price by 30%.

Apple is currently doing #2 and transitioning to #1. Are you really upset that they didn't pick #3?

Re:What would you have preferred to see? (4, Interesting)

Dcnjoe60 (682885) | about a year and a half ago | (#42205347)

Here are your options:

1. Manufacturing in the USA, with manufacturing using robots, creating low thousands of well-paid jobs for Americans.

2. Manufacturing in China using hundreds of thousands of low-paid Chinese jobs.

3. Manufacturing in the USA without robots, but with hundreds of thousands of minimum-wage part-time jobs--and all Apple products increase in price by 30%.

Apple is currently doing #2 and transitioning to #1. Are you really upset that they didn't pick #3?

Your choices all have the same outcome. It is not the number of american jobs that is important to the economy, it is the number of american jobs that provide a livable wage.

In a robotic plant, most of the workers are the ones who box things up at the end of the process. Usually the minimum qualifications are a high school diploma, if that. How is that a well paying job?

Unless Apple intends to pay a livable wage to its employees at these plant(s), which would mean either a significant price hike in products or a reduction in profits, all they are doing is pandering to the populus notion of buy American.

Re:What would you have preferred to see? (4, Informative)

Anonymous Coward | about a year and a half ago | (#42205465)

> Usually the minimum qualifications are a high school diploma,
You will need at least some jobs like that. Not everyone is capable of (or wants) higher education, some people just missed the boat, others like immigrants will take the opportunity to improve their children's station.

Not everyone without an advanced degree can work in fast food joints, so #1 still gives you a boost to entry-level US jobs as well as a spectrum of jobs up the pay scale including design. manufacturing, engineering, maintenance and so on.

Re:What would you have preferred to see? (1)

Anonymous Coward | about a year and a half ago | (#42205529)

You're forgetting the maintenance, production set up, etc are all good skilled jobs.
plus some others I'm probably unaware of.

Re:What would you have preferred to see? (3, Insightful)

tlhIngan (30335) | about a year and a half ago | (#42205541)

Your choices all have the same outcome. It is not the number of american jobs that is important to the economy, it is the number of american jobs that provide a livable wage.

In a robotic plant, most of the workers are the ones who box things up at the end of the process. Usually the minimum qualifications are a high school diploma, if that. How is that a well paying job?

Unless Apple intends to pay a livable wage to its employees at these plant(s), which would mean either a significant price hike in products or a reduction in profits, all they are doing is pandering to the populus notion of buy American.

Well, manufacturing is an unskilled job for the most part. In fact, factory jobs tend to be some of the worst around because they're utterly dull, boring and uninspiring work putting tab A into slot B and doing so in 750 milliseconds or less.

Other unskilled jobs include janitorial, housekeeping, etc. These are unskilled because anyone who graduates high school has all the requisite knowledge and skill to actually perform them, and they pay low because well, anyone who walks off the street can do it.

Robotic factories require far more skilled labor - you have to have technicians who can repair the robots, highly paid engineers who have to figure out how to make the product manufacturable by robots, supervisors to handle robot emegencies (and to manage human-robot interactions), engineers or techs to program the robots, etc. These require specialized training and as such, are much higher paying jobs. But of course there are far less of them - a robot tech can service multiple robots each work shift, likewise a manufacturing engineer designs the whole thing out before production begins, etc.

It's why the average American is far more productive than their Chinese counterpart - you cannot simply move manufacturing from China to the US without redesigning your product around that fact. Because all that happens is you're replacing low-skill jobs in China with low-skill jobs in the US (most of which would actually be fulfilled by illegal immigrants and such - just like in other low skill jobs).

Apple probably will pay just over minimum wage, because really, that's all the job demands. Unless you think putting stuff in boxes demands more pay than flipping burgers, cleaning toilets or other stuff.

And knowing Apple, if you're making tons of the stuff, they probably won't have a human hand touching it - just robots all the way into sealing the box. The only humans in the actual line are probably there to keep it going - receiving parts into inventory and stocking the part carriers for the robots, and shipping out the finished pallets of product.

Re:What would you have preferred to see? (4, Interesting)

Dcnjoe60 (682885) | about a year and a half ago | (#42205815)

Other unskilled jobs include janitorial, housekeeping, etc. These are unskilled because anyone who graduates high school has all the requisite knowledge and skill to actually perform them, and they pay low because well, anyone who walks off the street can do it.

There was a time, not too long ago, that anybody who graduated high school had all the requisite knowledge and skill to actually do almost any job, even start and run their own business, like Microsoft.

Back in the day, most business leaders, even , weren't college educated, but instead rose through the ranks to get to their position (with the exception of maybe medicine and engineering). Today, you spend $100,000 to get a degree so you can work in an entry level position. A generation or two ago, you just graduated high school for the entry level position and somebody with a college degree want into a junior management or mid-level position.

Face. it, most work fits in the category of being unskilled and monotonous. We just don't like to think about it wheny it applies to our own field.

Re:What would you have preferred to see? (1)

Firethorn (177587) | about a year and a half ago | (#42205719)

In a robotic plant, most of the workers are the ones who box things up at the end of the process. Usually the minimum qualifications are a high school diploma, if that. How is that a well paying job?

Isn't final packaging also normally robotic? Putting something in a box isn't hard to automate, and from what I've seen of modern packaging it'd be hard for manual workers to do. Lots of nitpicky little folds and things fitting exactly into slots. That's just using boxes, not fused clamshells.

As the ACs mention, you have the maintenance and adjustment of the robots, and that's a skilled job that justifies a 'living wage'.

US manufacturing has grown every decade, even as it's experienced a shedding of jobs in line with what happened to agriculture back during the industrial revolution. IE production going up an OOM even as you drop OOMs in worker numbers.

Re:May be related? (2)

perpenso (1613749) | about a year and a half ago | (#42205233)

Assembly jobs, just robot repair and janitors.

Even if so it still keeps more of the revenue in the US, less trade deficit.

Plus where are those robots made, maybe they are US made?

Re:May be related? (1)

Dcnjoe60 (682885) | about a year and a half ago | (#42205847)

Assembly jobs, just robot repair and janitors.

Even if so it still keeps more of the revenue in the US, less trade deficit.

Plus where are those robots made, maybe they are US made?

No, if the company is owned by Foxconn then the revenues leave the US. Unless all iP*d manufacturing moved here, it won't have much of a measurable impact on the trade deficit and no, most assembly line robots are not manufactured in the US, either.

from the fire to the frying pan (1)

Presto Vivace (882157) | about a year and a half ago | (#42205121)

Foxconn won't be able to be quite as horrible in the US, but it is a Foxconn plant and conditions will still be horrible. Even so, this is proof that corporations respond to publicity and pressure.

Re:from the fire to the frying pan (0)

Anonymous Coward | about a year and a half ago | (#42205657)

Foxconn won't be able to be quite as horrible in the US, but it is a Foxconn plant and conditions will still be horrible. Even so, this is proof that corporations respond to publicity and pressure.

From what I've read and heard, Foxconn factories in China may be abysmal compared with US standards, but they are better than other Chinese factories.

Re:Smart PR move (2)

forand (530402) | about a year and a half ago | (#42205275)

This is not certain, furthermore, I see no reason to condemn Foxconn(any manufacturer) more than Apple(any design company using said manufacturer). Apple could demand better adherence to US standards in the Foxconn plants making their products. Foxconn could just buck the local trend and treat their worker better than their rivals. Why does neither Foxconn nor Apple do this? Money. Foxconn can't do it and survive and Apple wants to maintain their 30% profit margin on their products.

However when you move the plant to the US things change. Foxconn MUST meet much more stringent working standards, not only because the US has more stringent regulations but they will not find workers to work in conditions similar to those in China. Finally, almost certainly what will happen is that the majority of the manufacturing work done in the US will be done by robots and only some small points will humans be used.

One thing that hasn't been addressed in the news thus far is how Foxconn might use the robotics expertise they gain from operating in the US in China. This could have a major effect on the Chinese economy and what that effect will be is far from clear (IMHO).

Re:Smart PR move (1)

Anonymous Coward | about a year and a half ago | (#42205349)

...they will not find workers to work in conditions similar to those in China.

Sure they will - in the US we call them Mexicans.

Apple is doing this (5, Interesting)

SuperKendall (25149) | about a year and a half ago | (#42205683)

Apple could demand better adherence to US standards in the Foxconn plants making their products.

Apple is doing this, they already demanded less overtime of workers and better enforcement of restrictions against child labor. And then they brought in an independent firm to audit this happening and asked FoxConn to allow them access.

The real question is, why is NO other company doing this.

Things are obviously not perfect at FoxConn but Apple is trying to make them better, in a way that anyone can keep track of. No other company is providing any kind of visibility into these issues.

So they aren't made in the US now? (-1, Troll)

aliquis (678370) | about a year and a half ago | (#42204745)

But the boxes or products say so?

Lies?

Re:So they aren't made in the US now? (2, Informative)

Anonymous Coward | about a year and a half ago | (#42204807)

They don't say that. They've always said something like "Designed In California".

Apparently some have already started saying "Assembled in USA" ... before that it was Made in China

Re:So they aren't made in the US now? (1)

jonr (1130) | about a year and a half ago | (#42205181)

This is getting more complex.

"Designed in California, manufactured in China, assembled in Texas, marketed in California, budgeted in New York...."

Re:So they aren't made in the US now? (1)

19thNervousBreakdown (768619) | about a year and a half ago | (#42205373)

"Made on Earth"

Re:So they aren't made in the US now? (0)

Anonymous Coward | about a year and a half ago | (#42204965)

Again, another idiotic post that is simply incorrect. I have over boxes for Apple products within 20 feet of me, and not a single one claims the product was made in the US.

Why are you spreading lies?

Re:So they aren't made in the US now? (1)

jythie (914043) | about a year and a half ago | (#42205195)

What makes you think that just because your boxes do not have it that none do? That is kinda the point of 'some'. In fact: example [gadgetmac.com] .

Re:So they aren't made in the US now? (1)

Silas is back (765580) | about a year and a half ago | (#42205725)

That's not a photo of a box, it's on the back of the respective iMac. ;)

Re: So they aren't made in the US now? (0)

Anonymous Coward | about a year and a half ago | (#42205733)

Some new iMacs are labeled as 'Made in USA'

Re:Smart PR move (-1)

Anonymous Coward | about a year and a half ago | (#42204763)

Meh, their stock keeps falling and they have to keep shovelling bullshit to keep their investors happy. They didn't pay a dividend as promised and they lost 6% value yesterday.

Meanwhile, $100 mil is stuff all, it doesn't cut the muster, I think I saw a warehouse that stored alcohol being built in NZ for $230 mil last year. Sufficed to say, that company lost a major contract with the retail outlets and suffered an $8bn hit within that same Q so no Cook is only really playing with himself on this one.

AC: Master Of Bad Timing (1)

SuperKendall (25149) | about a year and a half ago | (#42204877)

Meh, their stock keeps falling

Oh really? [google.com]

Still time to buy in cheap before the Cook interview gets wider coverage, and people realize once again the stock P/E is far lower than other tech stocks...

Re:AC: Master Of Bad Timing (-1)

Anonymous Coward | about a year and a half ago | (#42205089)

Exactly a PR stunt. That, plus some jack-off billionaire said AAPL is a "Buy" today. Tomorrow it will do what it has been for the last month and that is yo-yo until the next Q release where everyone gets to see what a fuck up the iPhone 5 and iPad Mini was and the price gets caned below 425 which is what everyone is expecting.

The insiders know this but they are hoping for Xmas miracle to turn it around. Don't get me wrong, I don't feel AAPL is destined to tank into oblivion or anything like that though the company's goodwill is not what it was.

My interests are NOK shares, I like rooting for the underdog and I feel that some of its impacts in Europe may actually pay off. AAPL needs fix their devices to work in LTE over there but again I see that as an easy fix and yet another PR Stunt as well.

AAPL 400- , NOK 7+ by mid next year are my predictions.

What dividend promise? (1)

perpenso (1613749) | about a year and a half ago | (#42204893)

They didn't pay a dividend as promised ...

They pay *regular* dividends. They did not announce a *special* dividend to get around the upcoming tax increases that will go into effect on Jan 1. When did they promise to do so?

Re:What dividend promise? (0)

Anonymous Coward | about a year and a half ago | (#42205193)

Yes because they are so short of cash they need to conserve it right?

Re:What dividend promise? (1)

DrgnDancer (137700) | about a year and a half ago | (#42205573)

Instead they should pointlessly waste it?

Re:What dividend promise? (4, Insightful)

perpenso (1613749) | about a year and a half ago | (#42205685)

Yes because they are so short of cash they need to conserve it right?

Promising such a dividend, such a dividend being a reasonable thing to do, and speculators expecting such a dividend by year end to avoid a tax increase are entirely different things.

Besides, such a cash horde helped them get through a bad *decade* in the past. If they were not so fiscally conservative they might not be here now. Plus they are in the position of being able to make massive strategic purchases or investments without going into debt. That puts them in a pretty strong position with respect to whatever comes "next". The engineer in me likes to see such flexibility and options rather than managing according to wall street expectations and norms.

Re:Smart PR move (0)

Anonymous Coward | about a year and a half ago | (#42205013)

Best part is the knowledge that somewhere out there, the ghost of Steve Jobs is exploding in motherfuckin' spectral rage at Tim Cook, after Jobs's blunt comments to President Obama that those jobs aren't coming back to the US, and to get used to it. Man, just knowing that makes me feel great.

Tighter supply chain (1)

sjbe (173966) | about a year and a half ago | (#42205421)

It may reduce their margins (minutely), but it will give them an immediate response to any allegations of massive offshoring of labor or anti-American sentiment.

Actually with the volumes Apple does they can automate the heck out of things so their margins probably won't be affected much. The biggest challenges are getting the components to the assembly plant for reasonable cost as well as flexibility but again, Apple is a big enough player that they are in a reasonable position to make that happen. Tim Cook being a supply chain guy I'm sure understands this well. US manufacturing is very competitive unless there is a very high percentage of labor cost in the product, particularly if it is unskilled labor or if the competition enjoys subsidies US companies do not.

Not just PR (3, Insightful)

mschaffer (97223) | about a year and a half ago | (#42205681)

It's a move to help keep their products from being restricted from import if/when they ever lose an IP lawsuit.

Re:Not just PR (1)

Anonymous Coward | about a year and a half ago | (#42205823)

It's a move to help keep their products from being restricted from import if/when they ever lose an IP lawsuit.

WHAT?!? NO! YOU FOOL! We all KNOW that, but we don't say it out loud! If that idea gets traction, then the current state of the patent system and IP law would quickly get picked up as a GOOD thing that helps American jobs, and then we'll never get it reformed, EVER. What is WRONG with you?

PR gimmic, if your cynical (0, Interesting)

Anonymous Coward | about a year and a half ago | (#42204721)

If they bring "some" jobs back to the States.
If the jobs come back to the States, certain politicians will owe Apple.
If they are owed by the Government they can call in the favor.
If they can get some political influence on their problems with Android and Samsung, it will benefit them.
If they can get political action against Android and Samsung it will increase their revenue.

Later on Apple can find an emergency that forces them to off shore their production again.

If your cynical.

Re:PR gimmic, if your cynical (0)

Anonymous Coward | about a year and a half ago | (#42204793)

That's excellent grammar...

If your an idiot.

Re:PR gimmic, if your cynical (1)

grub (11606) | about a year and a half ago | (#42204859)

If your a idiot.

Re:PR gimmic, if your cynical (1)

Anonymous Coward | about a year and a half ago | (#42205133)

If your are an a idiot.

Re:PR gimmic, if your cynical (-1)

Anonymous Coward | about a year and a half ago | (#42204887)

Listen here you fucking piece of shit! Take your stupid fucking grammar nazi bullshit and shove it your fucking ass! Y-O-U fucking shit-stain motherfucking parasite!

Re:PR gimmic, if your cynical (0)

Anonymous Coward | about a year and a half ago | (#42204915)

Re:PR gimmic, if your cynical (5, Funny)

Kohlrabi82 (1672654) | about a year and a half ago | (#42204843)

If they bring [...] jobs back

I knew that Apple was an evil company, but I didn't know they dabbled in necromancy.

Re: Necromancy (0)

Anonymous Coward | about a year and a half ago | (#42205419)

Bone white has always been a dominating aspect of most of their products.

Maybe (0)

Anonymous Coward | about a year and a half ago | (#42205053)

If they can get political action against Android and Samsung it will increase their revenue.

How?

If you're thinking that by eliminating Android tablets Apple's revenue will pick up, that may not be the case. I don't think it's a zero sum game - in other words a sale of an Android device doesn't mean a lost sale for Apple or vice versa. Eventually, Apple's sales growth will decline because everyone who wants an Apple tablet will have one and Apple's new sales are going to be for folks who want to upgrade.

Now Apple users... (0)

Anonymous Coward | about a year and a half ago | (#42204755)

Can feel better that they pay so much more for their goodies than everybody else. Although I sense a price hike in their future.

Re: PR Move (3, Interesting)

hawks5999 (588198) | about a year and a half ago | (#42204759)

If this is a PR move, it's costly. As the news of the Made in the US concept spread, AAPL lost $30 billion in market capitalization.

This needs to be a principled move because shareholders are going to complain greatly about any margin erosion for the sake of patriotism.

Drop was margin, not Made In USA (2)

SuperKendall (25149) | about a year and a half ago | (#42204817)

The AAPL drop was most likely caused by trading firms requiring higher margins on large AAPL buyers - because some idiot bought a million shares right before an earnings release, the stock went south a bit, and he tried to claim he entered an extra zero wrongly... he's going to jail for about 20 years now.

Today is the first day the Made in USA is really mainstream news, and the stock is up a bit.

Re:Drop was margin, not Made In USA (1)

Bigby (659157) | about a year and a half ago | (#42205335)

Made in the USA is old news to the stock. It is probably a 0.0001% factor in today's movement.

I agree... (1)

SuperKendall (25149) | about a year and a half ago | (#42205635)

It is probably a 0.0001% factor in today's movement.

In retrospect I can see how my post might have read as there being a connection, but I agree with you - they are totally separate things.

The movement is because people suddenly woke up and realized Apple still has waiting lists for almost every product, a ton of cash, and some competitors are not doing as well as expected.

Re: PR Move (1)

Striikerr (798526) | about a year and a half ago | (#42205019)

The share value was not tied to this (or just to this report) There are other silly reasons out there which apparently fed this.. People continue to be short sighted and to be honest, these market fluctuations are normal and if people worry over these dips, then they should not own stock. Those who invest for the long term are quite fine with such things as stocks always fluctuate.
Instead of focusing on the minor issues, analysts should keep in mind how much profit margin Apple has on everything they sell compared to other manufacturers. Look at the PC market. Apple has always focused on high quality and high margins. They have never been interested in the low margin purchasers and it has worked well for them. Look at smart phones and tablets and it's the same thing. I'd rather have stock in a company with a healthy profit margin than one which cuts it so low that they need to count on volume of sales to make it worth while. This makes for a far healthier company. If company A's margins are super low and a competing product hits the shelves which is superior and customers flock to that instead, Company A will suffer greatly.

Fewer components were ordered supposedly (1)

perpenso (1613749) | about a year and a half ago | (#42205131)

As the news of the Made in the US concept spread, AAPL lost $30 billion in market capitalization.

To put $30B in context Apple's stock lost 6%. The "Made in USA" story was not really cited in the mainstream financial press. One of the things that were cited was a report claiming that orders for components that go into devices are down, suggesting they are slowing manufacturing of devices. Also cited were changes in margin rules for owning Apple stock.

Re: PR Move (0)

Anonymous Coward | about a year and a half ago | (#42205621)

As the news of the Made in the US concept spread, AAPL lost $30 billion in market capitalization.

This needs to be a principled move because shareholders are going to complain greatly about any margin erosion for the sake of patriotism.

Are you serious?

Smart Move (0)

Anonymous Coward | about a year and a half ago | (#42204801)

Not just a good PR move, but also one that protects IP from Chinese industrial espionage.

Re:Smart Move (1)

Quakeulf (2650167) | about a year and a half ago | (#42204837)

Impossible!

Re:Smart Move (1)

Seeteufel (1736784) | about a year and a half ago | (#42204875)

Their products are made in China and branded Apple.

Did you even read the summary? (1)

Brannon (221550) | about a year and a half ago | (#42204957)

Honest question.

Re:Did you even read the summary? (0)

Seeteufel (1736784) | about a year and a half ago | (#42205271)

Fixed that for you: Their products are made in China and branded Apple. According to Apple CEO Tim Cook new sweat shops would be build in the US which assemble the iPoop prefap pieces from China, put the iPoops in little boxes and add "manufactured in the US" stickers.

Re:Smart Move (0)

Anonymous Coward | about a year and a half ago | (#42205109)

It's going to be a Foxconn plant so no.

China not as cheap (3, Interesting)

bhlowe (1803290) | about a year and a half ago | (#42204899)

Manufacturing in China is getting more expensive and North America is becoming more competitive. The tax rate on repatriating money made outside of the US also makes manufacturing in the US more advantageous.

Re:China not as cheap (-1)

Nyder (754090) | about a year and a half ago | (#42205083)

Manufacturing in China is getting more expensive and North America is becoming more competitive. The tax rate on repatriating money made outside of the US also makes manufacturing in the US more advantageous.

Except they aren't manufacturing anything, they are "assembling" in America. Fancy speak for plugging a power cord into the computer, or "assembling" the box that the computer and power cord goes in.

Re:China not as cheap (2, Informative)

Anonymous Coward | about a year and a half ago | (#42205219)

He said they will begin manufacturing next year for one of the Mac lines. If it was just "Assembling" don't you think he would have said that they are already doing that with the iMac?

Re:China not as cheap (1)

falcon5768 (629591) | about a year and a half ago | (#42205281)

Actually there a federal legal designation in terms of just using "assembled" in the US were most of the parts have to ALSO be manufactured here too.

Seriously, you are critical of Apple over this? (-1)

Anonymous Coward | about a year and a half ago | (#42204935)

You Apple haters on this site are too much.

Apple tries to move some manufacturing back to the US, and gets criticized for it on Slashdot... Funny stuff. Seriously, Slashdot has gone so far downhill, and all these ignorant anti-Apple posts are the bottom of the pile. Full of bias, anger, and almost all are based on false assumptions or simply erroneous assertions.

Re:Seriously, you are critical of Apple over this? (2)

Jeng (926980) | about a year and a half ago | (#42205047)

Apple is the new Microsoft, but only because Microsoft is no longer relevant.

Re:Seriously, you are critical of Apple over this? (-1)

Anonymous Coward | about a year and a half ago | (#42205587)

Apple sucks donkey cock. Do you like Apple? then you must like donkey cock as well!

"YUMMM! Love that donkey cock" ... "EEEAWWWWW"

The Insourcing Boom (2)

terrab0t (559047) | about a year and a half ago | (#42204955)

This sounds like another case of The Insourcing Boom [theatlantic.com] . Companies are finally seeing at the total cost of outsourcing. Cook mentioned that Apple already has to make some parts in the US and pay to ship them out to the manufacturing plants overseas, and that's only one of the common costs.

The interview doesn't go into a lot of details on Apple's move to US manufacturing, but a big part of the outsourcing cost is what you lose when you separate your product development from the manufacturing process. This comment from Tim Cook speaks to that:

In addition, we have hundreds of people that reside in China in the plants on a full-time basis that are helping with manufacturing and working on manufacturing process and so forth. The truth is we couldn’t innovate at the speed we do if we viewed manufacturing as this disconnected thing. It’s integrated. So it’s a part of our process.

I'm guessing this move to insource is not philanthropic, it's a smart business decision in the long run, just like General Electric's.

Re:The Insourcing Boom (1)

interval1066 (668936) | about a year and a half ago | (#42205285)

Yeah, more companies are starting to "in source". Fucking hideous, stupid, useless, meaningless, nonsense term. Its called "Made in the USA", stop acting like that's a bad word (or phrase). This is good news though. Apparently the capitolization of Asia was a great success.

Re:The Insourcing Boom (1)

DrgnDancer (137700) | about a year and a half ago | (#42205675)

It's not a bad word (or phrase), it's just inadequately descriptive. Similar things are happening (to lesser a extent, due to the economy) in Western Europe. It's more of a generic move to reverse some of the "outsourcing" of the last 20 years; hence "insourcing". this particular article is about returning to the "made in the USA" label, but the overall trend is global, and thus larger than just the US.

Re:The Insourcing Boom (1)

Anonymous Coward | about a year and a half ago | (#42205341)

Could be that Apple is tired of "handing" China patents which in turn becomes their competition. Remember if you build it in China, you hand their government the patents and place several government officials in the management chain as part of the business process. Could you imagine that happening in the U.S.?

Re:The Insourcing Boom (1)

Anonymous Coward | about a year and a half ago | (#42205557)

government officials in the management chain as part of the business process. Could you imagine that happening in the U.S.?

In China, government puts officials into businesses.
In America, businesses put officials into government.

ironic (-1, Troll)

slashmydots (2189826) | about a year and a half ago | (#42205035)

“I hate litigation. I absolutely hate it,” Cook said...BECAUSE IT'S BACKFIRING! Now that everyone and their grandma is counter-suing them and those copycats absolutely will lose, not to mention losing lots of their internal part manufacturers, how ironic is that? They won't have money to manufacture their products in America because they lost too much money from all that litigation that Cook now hates. Hilarious!

Re:ironic (0)

Anonymous Coward | about a year and a half ago | (#42205189)

They are the most valuable company in history. With over $100billion in cash reserves. They are not hurting for anything.

Re:ironic (0)

Anonymous Coward | about a year and a half ago | (#42205403)

They are the most valuable company in history.

No, they're not ... they're the most valuable company in term of market capitalization and ignoring inflation.

Re:ironic (0)

Anonymous Coward | about a year and a half ago | (#42205437)

Not in history, in present day yes. You factor in inflation and its still quite shy of MS's reign.

Assembled in America means... (-1, Troll)

Nyder (754090) | about a year and a half ago | (#42205055)

That they plugged the power cord into the computer.

boom, now it's assembled and ready to go!

Wake me up when it's manufactured in America.

Re:Assembled in America means... (1)

na1led (1030470) | about a year and a half ago | (#42205239)

Exactly. Stuffing the Mac in a box doesn't mean it's Made in America. I see the BS all the time, and when you look inside the package, China is written all over it.

Re:Assembled in America means... (0)

Anonymous Coward | about a year and a half ago | (#42205273)

No it means they UPS a little Asian kid as part of your new iDevice. After you unbox him he pulls out the soldiering iron and assembles it before your eyes. Kind of like the French how they send some guy over to your table when you're at the restaurant to flambe crepes.

ANNNNND still cheaper than hiring Americans!

Re:Assembled in America means... (0)

Anonymous Coward | about a year and a half ago | (#42205309)

Thanks for spamming [slashdot.org] . Or do you think what you have to say is so important that it needs to be pasted up multiple times?

It's better than nothing . . . (0, Offtopic)

InvisibleClergy (1430277) | about a year and a half ago | (#42205117)

. . . and it provides me with the excuse I need to switch over the an iPhone at the start of my next contract, given that the iPhone has significantly better HTML5/Canvas performance than the Android.

Re:It's better than nothing . . . (2, Funny)

Anonymous Coward | about a year and a half ago | (#42205397)

Look, it's great that you've finally decided to come out of the closet but really doing it by showing people you have an iPhone? there must be a more appropriate way to break the news to your folks.

We'll see about substantial (1)

sl4shd0rk (755837) | about a year and a half ago | (#42205127)

"Substantial" pretty much reflects the amount of technology, manufacturing and production facilities the USA has lost over the last decade or so to off-shoring (and moved to China, India, Korea and Taiwan).

I'll be watching to see if Apple re-starts the furnaces in Pittsburgh to mold all it's aluminum cases.

Re:We'll see about substantial (1)

Attila Dimedici (1036002) | about a year and a half ago | (#42205393)

Making the aluminum cases in the U.S. makes very little sense, since the U.S. has very small reserves of aluminum ore. It makes more sense to manufacture the aluminum parts close to where the aluminum is mined than it does to ship the ore somewhere else to refine it and manufacture the parts. I do not know enough about the process after the aluminum is refined to know whether it makes sense (cost, energy usage, quality of workmanship in the finished product, and probably a few other factors into that equation) to refine the aluminum at one place and ship ingots to a location closer to other manufacturing for forming.

Because you're the new 3rd world. lol (-1)

Anonymous Coward | about a year and a half ago | (#42205137)

That's why.

Screw Apple (1)

koan (80826) | about a year and a half ago | (#42205199)

2011
"Reporters Charles Duhigg and Keith Bradsher begin their lengthy piece with an unsettling anecdote set at a 2011 dinner for Silicon Valley big wigs that was attended by President Obama. At one point the president asked the late Steve Jobs why Apple couldn’t bring back to America the tens of thousands of jobs it had outsourced, mostly to Asia, where its iPads, iPhones and other products are engineered and assembled.

“Those jobs aren’t coming back,” Apple’s CEO reportedly replied. End of discussion.

According to Duhigg and Bradsher, Apple’s brass believes the American worker, besides earning too much money for his or her labor, just doesn’t possess “the flexibility, diligence and industrial skills of foreign workers.” Last week Frying Pan News writer Jon Zerolnick described the “flexibility” of Apple’s subcontracted Chinese workers, with their 34-hour shifts and 12-foot by 12-foot dormitories, and their skill at sliding into coffin-sized beds at night. Victorian Manchester was a worker’s paradise by comparison."

2012
"'We've been working on this for a long time, and we were getting closer to it. It will happen in 2013. We're really proud of it. We could have quickly maybe done just assembly, but it's broader because we wanted to do something more substantial.'"

Re:Screw Apple (0)

Anonymous Coward | about a year and a half ago | (#42205791)

Those jobs aren't coming back, don't be obtuse. They aren't going to be manual labour jobs, the jobs coming will be the people who build and maintain the robots that build the equipment.

Re:Screw Apple (1)

sdsucks (1161899) | about a year and a half ago | (#42205833)

Exactly. And a Foxconn spokesperson agrees: “Supply chain is one of the big challenges for U.S. expansion,” Woo said. “In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China.”

- http://www.bloomberg.com/news/2012-12-06/foxconn-plans-american-expansion-as-clients-seek-made-in-u-s-a-.html [bloomberg.com]

Apple to build at FoxConn in U.S.? (0)

Anonymous Coward | about a year and a half ago | (#42205211)

Reading between the lines, doesn't this really mean that Apple will be "assembling" their products in the U.S. using Asian components in an Asian owned factory (Foxconn) on U.S. soil?

Thanks to the efforts of our congress... (1)

Nadaka (224565) | about a year and a half ago | (#42205215)

We are now a competitive labor market for third world slave wages! That is one way to bring jobs back to America.

Wow (1)

HideyoshiJP (1392619) | about a year and a half ago | (#42205381)

Wow, I'm good with this. It may be a PR move, but it's one a find myself surprisingly happy about. I may consider actually buying (a new) one now.

This is good news! Good for Apple. (5, Insightful)

sdsucks (1161899) | about a year and a half ago | (#42205441)

1) So what if it's a PR move? It's still a good move for Americans - no matter what.
2) So what if it's a Foxconn factory? Of course it will be one - Apple is NOT a manufacturing company, but they do work *very* closely with their manufacturers.
3) So what if it's a mostly robotic factory? This IS the future of manufacturing in all countries - accept it, and accept that even robotic factories are better than none for the local economy.

Seriously, how are so many of you trying to spin this negatively? And why?

simple (0)

Anonymous Coward | about a year and a half ago | (#42205599)

H8rz gotta H8!

Re:This is good news! Good for Apple. (0)

Anonymous Coward | about a year and a half ago | (#42205829)

It will be placed in Colorado, and the managers will sometimes bear the title coyote.

another nail (0)

Anonymous Coward | about a year and a half ago | (#42205509)

An even bigger better reason not to get within a million miles of apple crap.

Maybe this will finally knock the final nail in the coffin lid.

Can't block imports that way (0)

Anonymous Coward | about a year and a half ago | (#42205633)

One of the weapons used in the patent wars is to block imports of infringing products. If the [allegedly] infringing products are built in the US[of]A, then they can't be blocked from import very well, can they?

Gives them a tactical advantage...

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