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Rumor: Apple to bring Mac mini production to U.S. in 2013

post #1 of 39
Thread Starter 
Apple will reportedly move manufacture of its Mac mini desktop line to American facilities as part of the company's initiative to return device production to U.S. shores, with plants run by partner Foxconn starting recruitment for automated production lines sometime in 2013.

Mac mini


The sometimes reliable Taiwanese publication DigiTimes cited upstream supply chain sources as saying Apple will likely move Mac mini production to one of Foxconn's U.S. plants, though it is unclear if the electronics giant plans to build a new facility or retool an existing location. Foxconn reportedly has "about 15 operating bases" in the U.S.

The rumored move has been foreshadowed by comments made by Apple CEO Tim Cook, who earlier this month said the company will invest over $100 million to produce one line of Macs in the U.S. by 2013. In a separate interview at the "All Things D" conference in May, Cook said that he wanted to see American-made Apple products, but offered no further information on whether that dream would become a reality.

Hopes for American-made Apple products were rekindled when a few new iMac units were labeled as being "Assembled in USA," hinting that the company may be testing domestic production facilities.

According to the publication, Mac mini shipments are expected to reach 1.4 million units by the end of 2012, and will be up 30 percent year-to-year with 1.8 million units in 2013.
post #2 of 39

Well, it makes sense that the speculation about the Mac Pro being produced in the US would be wrong, since Apple doesn't care about Mac Pros.

post #3 of 39

You know, that sounds right. Not difficult or expensive manufacturing like the iDevices, not representative of a huge secrecy concern (like just about everything else), and it has probably become cheap enough to make here without changing any pricing anywhere.


The sometimes reliable

 

Whoever said AI doesn't have a sense of humor.

post #4 of 39
Right. Just like Boeing manufactures the 787 in the US.

Guessing this should impact the share price negatively.
post #5 of 39
Originally Posted by eightzero View Post
Guessing this should impact the share price negatively.

 

Creating American jobs? That's another $20 off.

Selling more iPhones than all previous quarters combined? That's another $20 off.

Discovering a way to manufacture iMacs for only $1? That's another $20 off.

post #6 of 39
Well I guess it makes sense when most of the Mac Mini are being sold to US anyway. From Server to Desktop. So it doesn't make sense to assembled in China and send the final product back to US. But then this ignores the potential market in EU and Asia.

What financial benefits does it have when product are made in US?

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post #7 of 39
Quote:
Originally Posted by Tallest Skil View Post

Whoever said AI doesn't have a sense of humor.

Exactly the same level of "sometimes reliable" as a broken analog clock.

A competing site said "hit or miss", which is, "might occasionally hit the broad side of a barn if they copied someone else's firing solution and a bit of luck".
post #8 of 39
Originally Posted by JeffDM View Post
A competing site said "hit or miss", which is, "might occasionally hit the broad side of a barn if they copied someone else's firing solution and a bit of luck".

 

DigiTimes' dad, wanting it to feel a sense of accomplishment even though he knew it was incapable of performing the task at its age, nonchalantly moved the barn into the path of DigiTimes' shot.

post #9 of 39
just wondering why you guys are posting old news?!
post #10 of 39
Originally Posted by iftekhar View Post
just wondering why you guys are posting old news?!

 

This is more specific than that. Well, as specific as a DigiTimes article can be said to be.

post #11 of 39
Looking forward to having a Mac made in the US. Now all I need is for a TV or monitor to be made here and I'm set.
post #12 of 39
Quote:
Originally Posted by ksec View Post

Well I guess it makes sense when most of the Mac Mini are being sold to US anyway. From Server to Desktop. So it doesn't make sense to assembled in China and send the final product back to US. But then this ignores the potential market in EU and Asia.
What financial benefits does it have when product are made in US?

There are plenty of products made in other countries specifically for sale in other countries. On the simplest of cost analyst measures making a product in the US only makes sense if any increase in manufacturing/assembly is less than the cost for shipping to the US. That cost doesn't seem to be very high for a product like the Mac mini. I would expect something like the Mac Pro that is large and heavy to be assembled and packaged in the US before I'd consider the Mac mini.

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post #13 of 39
Quote:
Originally Posted by kdogg View Post

Well, it makes sense that the speculation about the Mac Pro being produced in the US would be wrong, since Apple doesn't care about Mac Pros.

That's exactly why it will be the Mac Pro, they don't care about having it made by inexperienced American welfare/prison labour. /s

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

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post #14 of 39
Starting recruitment for automated production lines?
post #15 of 39

The United States:

 

The Land of the Big Mac

 

...and soon the Big Mini.

Android: pitting every phone company in the world against one, getting a higher number, and considering it a major achievement.
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post #16 of 39
Quote:
Originally Posted by ascii View Post

Starting recruitment for automated production lines?

Even automated lines need people somewhere in the process. Loading components, moving boxes etc. Given the % of a Mac Mini that is human labour this makes total sense. Based on my experience of Chinese factories used by Apple I'd say that human element is less than US20 per unit.
post #17 of 39
Quote:
Originally Posted by ksec View Post

Well I guess it makes sense when most of the Mac Mini are being sold to US anyway. From Server to Desktop. So it doesn't make sense to assembled in China and send the final product back to US. But then this ignores the potential market in EU and Asia.
What financial benefits does it have when product are made in US?

 

You do realize that assembling in China and shipping back to the U.S. is still CHEAPER than making it here. Much cheaper.

post #18 of 39
Quote:
Originally Posted by lkrupp View Post

You do realize that assembling in China and shipping back to the U.S. is still CHEAPER than making it here. Much cheaper.
Bulk shipping cost for the mini from China a US logistics center by air freight is about $16 by my estimate. If production in China is $10/unit, and half the units are sold in the US, the manufacturing premium for a product designed for economical assembly is likely cost-neutral. The key would be that the major chips and boards are also made locally.

For the Pro, I would think centralized manufacture of the motherboard and distribution to final assembly plants would make sense, since air freight on the case is a significant premium.

The iMac would be harder in my mind, unless the display was manufactured in the same location as the case and final assembly.
post #19 of 39
Quote:
Originally Posted by SolipsismX View Post


There are plenty of products made in other countries specifically for sale in other countries. On the simplest of cost analyst measures making a product in the US only makes sense if any increase in manufacturing/assembly is less than the cost for shipping to the US. That cost doesn't seem to be very high for a product like the Mac mini. I would expect something like the Mac Pro that is large and heavy to be assembled and packaged in the US before I'd consider the Mac mini.

I, too, thought the Mac Pro was the best candidate for USA assembly because of the transportation charges.

 

From a totally different angle and admitting I'm not a tax expert.... the USA has high corporate tax rates and the Mac mini is believed to be a low margin product.  Maybe the tax implications to Apple are better for USA production of the mini instead of a high margin model.

post #20 of 39

Perhaps that is why the Mini lost it's GPU. They are trying to make it as simple as possible to build, for their new US-based automated factory.

post #21 of 39
As long as the quality does not suffer and price does not go up, I am fine with it.
post #22 of 39
Quote:
Originally Posted by Hudson1 View Post

From a totally different angle and admitting I'm not a tax expert.... the USA has high corporate tax rates and the Mac mini is believed to be a low margin product.  Maybe the tax implications to Apple are better for USA production of the mini instead of a high margin model.

That sounds like a reasonable argument/hypothesis to me.

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post #23 of 39
Quote:
Originally Posted by ksec View Post

What financial benefits does it have when product are made in US?

Higher pay for Cook once in Office¡
Quote:
Originally Posted by iftekhar View Post

just wondering why you guys are posting old news?!

Because that is still more informative than your post.
Quote:
Originally Posted by Winter View Post

Looking forward to having a Mac made in the US.

Patriotism aside, why are you looking forward to this? I don't think the hardware and quality won't change as a result.
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post #24 of 39
Once I saw the word"Digitimes" I just had to post. Almost laughable!!
post #25 of 39
Quote:
Originally Posted by THEMAC1NT0SH View Post

Once I saw the word"Digitimes" I just had to post. Almost laughable!!

True. Yet, fwiw, their recent reporting has been moving markets. CNBC has become their megaphone.

post #26 of 39
Quote:
Originally Posted by anantksundaram View Post

True. Yet, fwiw, their recent reporting has been moving markets. CNBC has become their megaphone.

 

It's sad what passes for journalism in this country these days.

post #27 of 39
I'd be a bit more impressed if these news stories didn't claim that Foxconn would be building these factories. That leaves the real executive and technical expertise off-shore, with Americans--and very few of them in automated factories--merely providing the labor.
post #28 of 39
Quote:
Originally Posted by ascii View Post

Perhaps that is why the Mini lost it's GPU. They are trying to make it as simple as possible to build, for their new US-based automated factory.

 

That is my point. They are basically saying transportation cost are going to go up in the future with no signs of any decline. Automated Factory will be much cheaper then the labour cost in long run, and the Design for Mac Mini will be dead for next 3 - 4 years and no tooling is required.

 

And Mac Mini is currently being used in Cooperate market and server market where both market aren't selling well in Asia, and little in Europe.

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post #29 of 39
Quote:
Originally Posted by Winter View Post

Looking forward to having a Mac made in the US. Now all I need is for a TV or monitor to be made here and I'm set.

 

Nothing good ever came from Nationalism.  Not one thing.  

post #30 of 39
Quote:
Originally Posted by Inkling View Post

I'd be a bit more impressed if these news stories didn't claim that Foxconn would be building these factories. That leaves the real executive and technical expertise off-shore, with Americans--and very few of them in automated factories--merely providing the labor.

 

That's pretty much the way it is and the way things have been going for many years now though.  If the executive and technical expertise was *available* in the US, they would use it.  In fact, this is what Apple is, the American technical and executive head office.  

 

The fact is that year by year less and less people (especially males), are able to qualify for that type of education or job in North America.  That's what the immigration is all about.  If not for the immigrants, USA, Canada, UK, and most similar countries couldn't generate enough trained individuals with any qualifications.  As long as the average American male is more interested in drinking beer and fishing instead of going to University or working hard, the immigrants will always be needed and the foreign countries will always be ahead of the USA in terms of development and education.  

 

They are ahead now and there doesn't seem to be any economic trends out there that indicate a reversal of fortune.  Manufacturing jobs as a whole are going away and they are leaving places like North America and Europe first.  That's just the way the economic cookie is crumbling.  

 

Automated factories are the future.  

post #31 of 39
Quote:
Originally Posted by Gazoobee View Post

 

That's pretty much the way it is and the way things have been going for many years now though.  If the executive and technical expertise was *available* in the US, they would use it.  In fact, this is what Apple is, the American technical and executive head office.  

 

The fact is that year by year less and less people (especially males), are able to qualify for that type of education or job in North America.  That's what the immigration is all about.  If not for the immigrants, USA, Canada, UK, and most similar countries couldn't generate enough trained individuals with any qualifications.  As long as the average American male is more interested in drinking beer and fishing instead of going to University or working hard, the immigrants will always be needed and the foreign countries will always be ahead of the USA in terms of development and education.  

 

They are ahead now and there doesn't seem to be any economic trends out there that indicate a reversal of fortune.  Manufacturing jobs as a whole are going away and they are leaving places like North America and Europe first.  That's just the way the economic cookie is crumbling.  

 

Automated factories are the future.  

Many immigrants come to the USA for advanced studies and generally stay here for employment.  That doesn't fit with your theory very well.

post #32 of 39
Quote:
Originally Posted by ksec View Post

 

That is my point. They are basically saying transportation cost are going to go up in the future with no signs of any decline. Automated Factory will be much cheaper then the labour cost in long run, and the Design for Mac Mini will be dead for next 3 - 4 years and no tooling is required.

 

And Mac Mini is currently being used in Cooperate market and server market where both market aren't selling well in Asia, and little in Europe.

What's really going up are Chinese wages for trained workers.  The competitive advantage in labor costs for China has been and is forecasted to shrink.

post #33 of 39
Ok this is the second most likely, because Mac Pro is largest and is easier and pice effect is not visible. This the Mac mini still is simple and not to thin(the IMac and MacBooks are under a inch) and these are the two without built in screens yet who knows or cares a made in America Macintosh is going to be in people's hands 2013.
post #34 of 39
Quote:
Originally Posted by Curtis Hannah View Post

Ok this is the second most likely, because Mac Pro is largest and is easier and pice effect is not visible. This the Mac mini still is simple and not to thin(the IMac and MacBooks are under a inch) and these are the two without built in screens yet who knows or cares a made in America Macintosh is going to be in people's hands 2013.

Some people here seem to want US-made Macs. I don't actually care, even though as a kid I just 'knew' if it was made in Asia it was poorly build.

MP does look like a likely candidate, here's an old pic of a G5

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post #35 of 39
Quote:
Originally Posted by PhilBoogie View Post

Some people here seem to want US-made Macs. I don't actually care, even though as a kid I just 'knew' if it was made in Asia it was poorly build.

The quality is generally fine with Apple products. Part of it is if you're cost cutting, and moving work to where the labor is cheap, it seems like cutting quality also achieves that, and too many companies took that bait.

Supposedly there is a move by industry to reshore some manufacturing and assembly work. It turns out some manufacturing should never have left, it was simply assumed that the costs were lower because of lower wages, but a thorough analysis was never done to cover all the factors. It was just assumed that lower wages meant less expensive production, without any work validating the assumption. There are other factors, as wages are increasing in China and the cost of natural gas is cheaper in the US too.

Quote:
MP does look like a likely candidate, here's an old pic of a G5

My original Mac Pro has a "Made in the USA" or "Assembled in the USA" mark on its tag. G5s were too.
Edited by JeffDM - 12/28/12 at 9:49am
post #36 of 39
Quote:
Originally Posted by JeffDM View Post

The quality is generally fine with Apple products. Part of it is if you're cost cutting, and moving work to where the labor is cheap, it seems like cutting quality also achieves that, and too many companies took that bait.

Supposedly there is a move by industry to reshore some manufacturing and assembly work. It turns out some manufacturing should never have left, it was simply assumed that the costs were lower because of lower wages, but a thorough analysis was never done to cover all the factors. It was just assumed that lower wages meant less expensive production, without any work validating the assumption. There are other factors, as wages are increasing in China and the cost of natural gas is cheaper in the US too.

Good points, thanks.
Quote:
My original Mac Pro has a "Made in the USA" or "Assembled in the USA" mark on its tag.

Really? I've never seen that - and I've seen quite a few. I know you have experience with this box inside out so I'm not questioning you. Surprised, I am.
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post #37 of 39
This is very good, actually. I honestly hope we see lots of US employment, and not being a dick here, I hope there won't be anyone threatening to jump off roofs.
post #38 of 39
Quote:
Originally Posted by sr2012 View Post

This is very good, actually. I honestly hope we see lots of US employment, and not being a dick here, I hope there won't be anyone threatening to jump off roofs.

Missing out on the Christmas spirit today? It's one pathetic post after the other with you, isn't it?
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post #39 of 39
Quote:
Originally Posted by PhilBoogie View Post

Missing out on the Christmas spirit today? It's one pathetic post after the other with you, isn't it?

No, with you around I'm infused with holiday joy... 1wink.gif
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