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Apple will invest $100M to produce one line of Macs in the US in 2013

post #1 of 104
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Apple Chief Executive Tim Cook has revealed that he plans to bring production of one entire line of Macs to the U.S. next year.

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Cook revealed the information in a wide-ranging interview published Thursday by Bloomberg Businessweek. In it, he noted that Apple's ARM processors that power the iPhone and iPad are already made in the U.S., along with the Corning Gorilla Glass covers ? but he also revealed that next year, at least some Mac production will come to America.

"We've been working on this for a long time, and we were getting closer to it. It will happen in 2013," Cook said. "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 revealed that Apple is planning to spend more than $100 million dollars to bring production of some of its Mac lineup to America. He also revealed that Apple will not be handling the production themselves, but that the company plans to work with other companies and invest its money.

But in an excerpt from Cook's interview set to air tonight on NBC's Rock Center, the CEO went even further and said that Apple would make one entire line of Macs in America. He declined to say specifically which lineup would be produced stateside.

Cook


"We?ve been working for years on doing more and more in the United States," Cook told NBC's Brian Williams. The full interview with Cook will air on tonight's episode at 10 p.m. Eastern.

Cook's comments come soon after his company's new iMacs began shipping, with some units labeled as being "Assembled in America." Previously, some build-to-order iMacs were built in the U.S., but with this year's models, some standard configurations have also been built domestically.

Cook
Apple Chief Executive Tim Cook visits a Foxconn iPhone production plant earlier this year.


In an interview at the "All Things D" conference in May, Cook said he would like for there to be Apple products built stateside. But he noticed that critics have placed an "intense focus on the final assembly" of Apple's products, rather than where the individual components are built.

"We will do as many of these things [in America] as we can do," Cook said. "And you can bet that we'll use the whole of our influence to do this."
post #2 of 104
Congratulations to Apple for doing this, the public will appreciate it.
post #3 of 104
And the stock will probably drop another 3-5% today. lol.gif
post #4 of 104

I wonder if they are using the Mac to prime the factories, which will ultimately be used to produce TVs. Or maybe it will be the big, heavy Mac Pro made in the US, since they are a costly item anyway, so the cost of labor is a smallest fraction of the total.

post #5 of 104
Quote:
Originally Posted by ascii View Post

I wonder if they are using the Mac to prime the factories, which will ultimately be used to produce TVs. Or maybe it will be the big, heavy Mac Pro made in the US, since they are a costly item anyway, so the cost of labor is a smallest fraction of the total.
Beat me to it. Mac Pros would be the most likely line to be built here, low volumes and high margins make it easy to do. Further if Apple is only investing $100 million that would likely handle Pro volumes easy.

The other option would be a highly automated factory doing something like the Mac Mini. The problem here is that I don't see $100 million going very far to start up such a factory from new.

Of course the third option is XMac. If production in America is possible then even an XMac is possible.
post #6 of 104
post #7 of 104
Quote:
Originally Posted by ascii View Post

I wonder if they are using the Mac to prime the factories, which will ultimately be used to produce TVs. Or maybe it will be the big, heavy Mac Pro made in the US, since they are a costly item anyway, so the cost of labor is a smallest fraction of the total.
Doesn't it make sense to start with something small? And ramp up from there?
post #8 of 104
Quote:
Originally Posted by wizard69 View Post


Beat me to it. Mac Pros would be the most likely line to be built here, low volumes and high margins make it easy to do. Further if Apple is only investing $100 million that would likely handle Pro volumes easy.
The other option would be a highly automated factory doing something like the Mac Mini. The problem here is that I don't see $100 million going very far to start up such a factory from new.
Of course the third option is XMac. If production in America is possible then even an XMac is possible.

From his comment it's clear Apple is contributing to some other company that will actually be doing the production. If that company already has an existing facility the $100M may be all that's needed to dedicate a line/area to Apple. Other tech companies might also be using them. Where did Google have the Nexus7 done, which was also "US built"? Possible it's the same folks.

 

Pegatron would make sense with connections to both ASUS and Apple, coupled with a US presence already.

 

EDIT: More evidence that Pegatron will be doing the build. Check the address:

http://start.cortera.com/company/research/k9p9sqj5m/pegatron-usa/

 

Fremont is reported to be the the shipping source city for "built-in-the-USA" Macs.


Edited by Gatorguy - 12/6/12 at 6:18am
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post #9 of 104
Well it is probably Mac Pro but there's a lot of possibility.
post #10 of 104
I'd like to see the US plant be for custom configurations as well. This includes products destined for the US government that can't contain certain pieces of hardware (microphone, wireless, even disks). The mini can be opened up fairly easily to remove the disk and wireless while the new iMac is next to impossible. Give government installations the option to buy them the way they can use them or the Mac-haters will have the final, final nail driven into the Mac coffin for users like me. At least most MBP's are easy to deal with but even they are getting more complicated to extract certain parts.

Before anyone mentions the obvious, that all of this can be handled by software-based management controls, remember that the policies have been written by people with an interest in Windows-based systems where you can find a vendor who will build a PC anyway you want it built. Of course, you'll need to buy one every year after it breaks but that's not their problem.

Speaking of the word "their," it would be nice if the author understands the difference between there and their, "...Cook said he would like for their to be Apple products built stateside."
post #11 of 104
Quote:
Originally Posted by Rogifan View Post


Doesn't it make sense to start with something small? And ramp up from there?

 

From the perspective of volume the Mac Pro is small.  And probably why it got delayed to 2013.  That all fits together as well as why they've been so cryptic over why the Mac Pro will be super awesome to be waiting for.  Probably not some uber new design although I hope for a design refresh that allows them to fit into a rack without surgery but the fact it's made in the USA.  

 

I would guess most Mac Pro purchases are in the US and amusingly this would give Apple an advantage for any government purchases with covered by some US good preference legislation (Fed, state or local governments have varied buy american legislation that sometimes applied).

 

"1933 Buy American creates a price preference that favors "domestic end products" from American firms on U.S. federal government contracts for:

  • Unmanufactured products mined or produced in the United States;
  • Manufactured products in which:
    • the cost of its U.S. components exceeds 50% of the cost of all components of the item and the product is manufactured in the United States (FAR Subpart 25.003)."

LOL.  I bet the Xeons are fabbed in the US and more than 50% of the cost of the machine.

 

Dell and HP are gonna be annoyed if they have to get a waiver for every major workstation sale to the federal government.  Those are some of the better margin items.

 

This makes me feel a little better when I get stuck on a US airline because of the stupid Fly America Act.

post #12 of 104
Quote:
In an interview at the "All Things D" conference in May, Cook said he would like for their to be Apple products built stateside. But he noticed that critics have placed an "intense focus on the final assembly" of Apple's products, rather than where the individual components are built.

 

 

Ugh. Who writes/edits this stuff?

post #13 of 104
Quote:
Originally Posted by rob53 View Post

I'd like to see the US plant be for custom configurations as well. This includes products destined for the US government that can't contain certain pieces of hardware (microphone, wireless, even disks). The mini can be opened up fairly easily to remove the disk and wireless while the new iMac is next to impossible. Give government installations the option to buy them the way they can use them or the Mac-haters will have the final, final nail driven into the Mac coffin for users like me. At least most MBP's are easy to deal with but even they are getting more complicated to extract certain parts.

 

 

----- How can I buy Macs without cameras, Bluetooth, or WiFi hardware?

Two Apple resellers are authorized to remove these devices from Macs before shipping them to you:

- Holman's http://www.holmans.com

- Intelligent Decisions http://www.intelligent.net

These modified Macs must be serviced by these resellers under Apple warranty or AppleCare. You cannot send modified Macs directly to Apple for warranty or AppleCare repair.
 
post #14 of 104

I wonder if they're getting some sort of tax break that will allow them to bring some of their cash back into the country.

post #15 of 104

Another vote for the Mac Pro.  Not sure if it's been mentioned by others but size and weight of the machine would favor local production.  Trans-Pacific transportation charges per unit have to be quite a bit more for a Mac Pro than, say, a Mac mini.  I imagine the majority of Mac Pro sales are still in N. America, too.  Lastly, anything that's heavily skewed to "build to order" (which I assume Mac Pros are) are best built close to the customer as the opportunity for bulk shipment of finished product is diminished.

post #16 of 104
Yes my guess is Mac Pro too. If they build it in US from scratch, I will buy one for sure.

I hope they would use raw material and natural resources in US as part of the design too. That would be unique and eco-friendly.
post #17 of 104

Okay, I'll be the first to say the obvious ... the quality of that line will probably be lower than the quality of the Asian manufactured stuff.  

post #18 of 104
Quote:
Originally Posted by nht View Post

 

 

----- How can I buy Macs without cameras, Bluetooth, or WiFi hardware?Two Apple resellers are authorized to remove these devices from Macs before shipping them to you:- Holman's http://www.holmans.com- Intelligent Decisions http://www.intelligent.netThese modified Macs must be serviced by these resellers under Apple warranty or AppleCare. You cannot send modified Macs directly to Apple for warranty or AppleCare repair.
 

I know all about Holman's but until you see the process actually being done by them and then look at how they would open a new iMac, my suggestion makes a whole lot of sense. The newer MBPs are a breeze to open compared to the older ones Holman's had problems opening and getting the optical disk slot to properly close. The problem is, companies like this should not have to be put into this position, the computers should be able to be ordered the way we need them. Apple has the ability to do this, especially with a US plan configured to handle special configurations like these. As for Apple's unwillingness to fix vendor-adjusted computers, this adds fuel to my desire to have Apple stand behind everything they sell. What happen's if these vendors went out of business and I had purchased 1000 iMacs without hard drives (removed by Holman's)? Who takes care of the warranty now?

post #19 of 104
Quote:
Originally Posted by Gazobee 
Okay, I'll be the first to say the obvious ... the quality of that line will probably be lower than the quality of the Asian manufactured stuff.

It depends on many factors such as margin, QA, design and process (e.g., whether robots are involved)
post #20 of 104
Quote:
Originally Posted by nht View Post

 

 

----- How can I buy Macs without cameras, Bluetooth, or WiFi hardware?Two Apple resellers are authorized to remove these devices from Macs before shipping them to you:- Holman's http://www.holmans.com- Intelligent Decisions http://www.intelligent.netThese modified Macs must be serviced by these resellers under Apple warranty or AppleCare. You cannot send modified Macs directly to Apple for warranty or AppleCare repair.
 

See the post 9 edit. Pretty darn sure Pegatron will be building this, just as they were the likely US builder for Google's Nexus 7

http://www.electronista.com/articles/12/12/06/apple.returns.to.roots.to.build.new.imacs/

http://start.cortera.com/company/research/k9p9sqj5m/pegatron-usa/


Edited by Gatorguy - 12/6/12 at 6:25am
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post #21 of 104

iPerforma line is coming back.  BWAHAHAHAHAHA

post #22 of 104
Quote:
Originally Posted by rob53 View Post

I know all about Holman's but until you see the process actually being done by them and then look at how they would open a new iMac, my suggestion makes a whole lot of sense. The newer MBPs are a breeze to open compared to the older ones Holman's had problems opening and getting the optical disk slot to properly close. The problem is, companies like this should not have to be put into this position, the computers should be able to be ordered the way we need them. Apple has the ability to do this, especially with a US plan configured to handle special configurations like these. As for Apple's unwillingness to fix vendor-adjusted computers, this adds fuel to my desire to have Apple stand behind everything they sell. What happen's if these vendors went out of business and I had purchased 1000 iMacs without hard drives (removed by Holman's)? Who takes care of the warranty now?

 

The fact is that the USG doesn't buy enough machines in volume to make this worth while.  I sat across the table during negotiations with HP regarding the need for a key product they were discontinuing that their own reps had sold the program on.  Essentially they told the USG to go pound sand, you guys don't buy enough stuff for us to care making more of these for you even for ridiculous amounts of money and a commitment to buy our craptastic itanic servers.  They'd probably sing a somewhat different tune today but you know, probably not.  

 

We ended up buying every single one of those things that could be found on the open market, used, refurbed, broken, whatever and spent huge amounts of money to get the hell off their HPUX platform essentially a decade earlier than planned.

 

If Holman's goes out of business I'm sure someone will pick up their support contract or Apple will handle the warranty.  The Apple Fed reps have been pretty good to us anyway.  Better than the HP or Dell ones anyway with volumes far far lower.

post #23 of 104
Quote:

<snip>

 

I would guess most Mac Pro purchases are in the US

 

<snip>

 

Why??

 

 

I suppose possibly more Mac's are sold in the US than outside, but 'most' ?

 

I've seen a gazillion of these in UK Newspapers ( currently going down the pan admittedly... the Newspapers, not Mac Pro.. )

Plus all the Audio Pro's I know in UK also use Mac Pro's..

 

My money is on the new Mac Pro being built there. I don't really care though, as long as there is a new Mac Pro and I can purchase it in the UK...

post #24 of 104
"Congratulations to Apple for doing this, the public will appreciate it."

Pure baloney. The public will ignore American made Macs if they are even five dollars more than the foreign made Macs. This pie-in-the-sky, feel good, made-in-America crap is shear political pablum. The theory has been discredited over and over again in the clothing and electronics world.

The only people who will appreciate it are the activists and talking head pundits. This is a political move by Apple only.
post #25 of 104
Quote:
Originally Posted by nht View Post

 

The fact is that the USG doesn't buy enough machines in volume to make this worth while.  I sat across the table during negotiations with HP regarding the need for a key product they were discontinuing that their own reps had sold the program on.  Essentially they told the USG to go pound sand, you guys don't buy enough stuff for us to care making more of these for you even for ridiculous amounts of money and a commitment to buy our craptastic itanic servers.  They'd probably sing a somewhat different tune today but you know, probably not.  

 

.....

I have been there as well and this is why Apple needs to set up at least one assembly line in Fremont or another US site where special iMac configurations could be made on an as-needed basis. This would initially cut into Apple's profit margin but ultimately would save them money on broken returns because I know the latest iMacs will have a high return rate by any licensed vendor trying to repair them. Even if this custom line only ran one day a week, it would benefit those government and enterprise users who need special configurations. Doing this work in the US would also allow inspection by government controllers worried about computers built in China. Apple is infesting government installations, whether pro-Microsoft IT managers like it or not. It's time for Apple to make a push to come through the front door with configurations we need. Many government sites are on a three year replacement cycle and being able to provide a properly configured computer will push them to the front of the GSA line. Let's hope Mr. Cook understands this and is willing to take a chance with the historically unfriendly USG. With the influx of iPhones and iPads, Apple is seeing tremendous growth in government and enterprise sites so I believe the time is right for the big push. Users want Macs and the old guard are starting to leave. This is the right time to have a custom assembly line in the US.

post #26 of 104
I can see the MacPro's easily made in the US, since they can probably be done with robots due to the simplicity of the actual case and electronics
post #27 of 104
While some of you guys keep talking about the Mac Pro, you need to be reminded that it's iMacs that are coming with the assembled in USA stamps.
post #28 of 104
Quote:
Originally Posted by wizard69 View Post


Beat me to it. Mac Pros would be the most likely line to be built here, low volumes and high margins make it easy to do. Further if Apple is only investing $100 million that would likely handle Pro volumes easy.
The other option would be a highly automated factory doing something like the Mac Mini. The problem here is that I don't see $100 million going very far to start up such a factory from new.
Of course the third option is XMac. If production in America is possible then even an XMac is possible.

Do you think that the 2013 Mac Pro line will be expanded downward so that a new addition would be the XMac?

I'd like that personally. 1smile.gif

post #29 of 104
Quote:
Originally Posted by drblank View Post

I can see the MacPro's easily made in the US, since they can probably be done with robots due to the simplicity of the actual case and electronics

Having one, I can tell you that the Mac Pro is easily the most complex of all Macs by far. The case is very complex. You obviously haven't seen one if you think the case and electronics are simple.
post #30 of 104
I think Apple should make a i5 and i7 tower along with XEON for the higher end MultiProcessor crowd. The ProTools crowd doesn't need as much processing as much as they need slots and lots of storage, since most of the processing is done on plug-in cards.
post #31 of 104
Quote:
Originally Posted by lkrupp View Post

"Congratulations to Apple for doing this, the public will appreciate it."
Pure baloney. The public will ignore American made Macs if they are even five dollars more than the foreign made Macs. This pie-in-the-sky, feel good, made-in-America crap is shear political pablum. The theory has been discredited over and over again in the clothing and electronics world.
The only people who will appreciate it are the activists and talking head pundits. This is a political move by Apple only.

That's probably because those products are commodity. People do care about fashion done in Italy and pay a premium for them. For the US Mac, they will have to figure out its selling point and make sure people lust after it. Apple is one of the few companies with enough margin to execute this move on a sustainable basis.
post #32 of 104
Quote:
Originally Posted by melgross View Post

While some of you guys keep talking about the Mac Pro, you need to be reminded that it's iMacs that are coming with the assembled in USA stamps.

Either this article or another one already mentioned that the existing "made-in-the-USA" Macs are probably a test run. I believe they're also probably being built by Pegatron, based in Fremont, CA. Other stories place Fremeont as the source of the US shipments.

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post #33 of 104
Quote:
Originally Posted by lkrupp View Post

"Congratulations to Apple for doing this, the public will appreciate it."
Pure baloney. The public will ignore American made Macs if they are even five dollars more than the foreign made Macs. This pie-in-the-sky, feel good, made-in-America crap is shear political pablum. The theory has been discredited over and over again in the clothing and electronics world.
The only people who will appreciate it are the activists and talking head pundits. This is a political move by Apple only.

 

I can agree with your comments on a variety of levels. "Made in America" is something all politicians use to get votes. I'm sorry Detroit took such a much hit but the commercial saying "imported from the US" doesn't help this situation. As for why Apple is considering a US plant, let's look at the money trail. Mr. Cook met with our President and I have to wonder if this discussion came up as a way for Apple to repatriate some of the money earned overseas. Building products in the US means US taxes so shifting some of the manufacturing to the US automatically brings that money back home where Apple can use it for domestic projects. Apple already is having products built/assembled outside China but the Brazil factory has to sell most if not all of its products in Brazil (need to confirm this). Let's hope Apple builds this factory and uses the money to provide even better products. (glass half full mentality)

post #34 of 104
Tim Cook is taking the billions and doing some pretty substantially forward thinking stuff. I'm sure much of this was in the works before Steve left, but Tim is going strong with it and I'm impressed. Now I'm waiting to see who can reignite the feeling of awe and excitement at events because Tim's not it. Who will I actually believe when that person says a new project is "revolutionary" or "magical". Might never happen, I guess, but it would be fun.

I wonder if they'll convince Jony Ive to get up on stage. He has an infectious hyperbole gene judging by the promo videos. 1smile.gif
post #35 of 104
Quote:
Originally Posted by wizard69 View Post

Of course the third option is XMac. If production in America is possible then even an XMac is possible.

I've said it a number of times, xMac or some derivation of it would be a great idea.

 

That being said.  I think the future of consumer computing (at least for multi-user households) will be a device that marries the Mac Mini with the Apple TV and the Airport Extreme, all in one device.  This could be accessed by the TV, a laptop or a dumb terminal, and/or an iDevice.  More and More people are moving way from the home office an into other parts of the house with computers, making the traditional desk less and less relevant and desirable.  The future is going to be more of a home server that stores all your date (along with iCloud, of course) but can be accessed remotely from any device in Apple's ecosystem.

 

Many might say this is already achievable in the Mac Mini server...I say not quite.  It's still another OSX device you have to manage.  My vision is much simpler.  More like a iPad server that much more powerful, but scores easier to use.  It's UI could adapt to whatever device you're accessing it from, unlike the Mac Mini that's strictly OSX-based.  Why not create a device that works with your devices, rather than the devices having to conform to it?  I don't see it as another computer to manage, more so a storage and access point from multiple sources and adapts to those UI's.

 

For the general public, most people use computers for 3 primary uses:

  • Content consumption and Entertainment (i.e. games, music, video)
  • Internet, email and communications (i.e. mail, messages, safari, Facetime)
  • Content creation (i.e. iWork suite)

 

Apple already has all the software they need to achieve these things.  The problem is that all three have an ideal UI/iDevice that work with them best.

Content consumption = iDevice or TV

Internet, Email & Communicaitons = iDevice/Laptop

Content Creation = Laptop/Desktop

 

So IMO, seeing as there is not longer a need for a single device to do all these basic things most people use a computer for, why not create a device that works with all your different UI's but puts the brains of it all in a central location?  Let's take home sharing to the next level.

post #36 of 104
I always thought the Mac Pro was made in the US anyways. If not, then I think its a great place to start. They're low volume like others have stated, heavy, and should be fairly easy to produce in the amounts needed. It would also cut down on air travel time as because of their size and weight, they can only ship so many (not that they need to ship a lot).

Mac Mini (Mid 2011) 2.5 GHz Core i5

120 GB SSD/500 GB HD/8 GB RAM

AMD Radeon HD 6630M 256 MB

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Mac Mini (Mid 2011) 2.5 GHz Core i5

120 GB SSD/500 GB HD/8 GB RAM

AMD Radeon HD 6630M 256 MB

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post #37 of 104
Quote:
Originally Posted by lkrupp View Post
Pure baloney. The public will ignore American made Macs if they are even five dollars more than the foreign made Macs. This pie-in-the-sky, feel good, made-in-America crap is shear political pablum. The theory has been discredited over and over again in the clothing and electronics world.
The only people who will appreciate it are the activists and talking head pundits. This is a political move by Apple only.

 

Talk to some guitarists sometime.  Yeah there are plenty of us that are happy to buy a Made in China Epiphone or Squier (especially the Vintage Modified line, they're pretty damn sweet.  I need a Jaguar heh), but there are tons of people who will only buy a Made in America Fender or Gibson product.  Some guitar companies have never done overseas work, like Rickenbacker.  Of course, their guitars are all at least $1800 too.


Edited by SSquirrel - 12/6/12 at 7:22am
post #38 of 104
I wonder if Apple is prototyping a super-automated production line with the view to scaling up if it proves feasible. Surely robotic manufacturing technology has advanced a bit since Apple shut down its U.S. plants. Maybe the technology is about to reach an inflection point that allows all those assembly operations in China to be brought back to the U.S. Just the operations though, and a very small fraction of the jobs.
post #39 of 104
Quote:
Originally Posted by aaronsullivan View Post

I wonder if they'll convince Jony Ive to get up on stage. He has an infectious hyperbole gene judging by the promo videos. 1smile.gif

 

Those might take several takes...he might not do as well live or maybe he understands that it takes a gazilion rehearsals to get a live keynote right and doesn't want to bother especially if he doesn't like public speaking anyway.

post #40 of 104

Wouldn't the new iMac lineup be the logical choice? High end technology, that when mastered here in the U.S, would lead to the 50" Apple TV being produced here. Perhaps this is related to the Foxconn investment in Detroit? Start with iMacs and then move to Tv's. There would be savings on shipping costs here with the weight of a TV, no different than the issue with white goods (large appliances).

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