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President Obama mentions Apple's planned U.S. manufacturing in State of the Union address

post #1 of 37
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During President Barack Obama's State of the Union address on Tuesday, Apple CEO Tim Cook was in attendance when his company was mentioned as one of the country's leading corporations that plans to bring jobs back to America.

State of the Union
President Obama addresses the nation during the 2013 State of the Union. | Source: The White House


While Cook himself wasn't singled out during the President's speech, Apple was cited as a potential driver of job growth with its decision to restart manufacturing of certain Mac computers in the U.S.

Caterpillar is bringing jobs back from Japan. Ford is bringing jobs back from Mexico. And this year, Apple will start making Macs in America again.


In the address, President Obama gave an overview on how America is faring, saying the nation's economy is slowly recovering as it regains footing in the international market after a debilitating financial crisis. He also drove home the main points of his platform, lauding a balanced approach to deficit reduction with a focus on comprehensive bipartisan tax reform.

February 13, 2013


As for Cook (pictured above), 2013 is the second year in a row that a person with ties to Apple has been asked to accompany the First Lady to the important event. In 2012, Laurene Powell Jobs, widow of late Apple cofounder Steve Jobs, was in attendance as the President pointed to the tech guru's ingenuity as an example of America's best and brightest.
post #2 of 37
... and hopefully this won't be the sole effort Apple, and many others, will make towards improving the economy of the coutry wherein they got their start(s).
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post #3 of 37
I'm confused. Has Apple re-started its own manufacturing, or is it FoxConn that actually does the manufacturing? Isn't it actually FoxConn that will begin manufacturing Apple products in the U.S., and FoxConn that should be mentioned?
post #4 of 37
How does Obama know Apple will make Macs here? Cook won't even tell us what or if Apple will build computers here.
post #5 of 37
Please make the US made Mac minis powerful, with a real GPU. I really want to buy one! But American made alone isn't going to sell the Macs.
post #6 of 37
Yes thank you apple!!!

I mean what other company has done as much for U.S job growth as you have. $50 billion per quarter revenue and your investing a staggering one time $100 million in producing some macs that will be sold with ridiculous profit margins. I have no words. MERICA!!!
post #7 of 37

Mac comes home.

 

"Apple should pull the plug on the iPhone."

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post #8 of 37
Quote:
Originally Posted by Digital_Guy View Post

I'm confused. Has Apple re-started its own manufacturing, or is it FoxConn that actually does the manufacturing? Isn't it actually FoxConn that will begin manufacturing Apple products in the U.S., and FoxConn that should be mentioned?

Apple contracts out with Foxconn, Foxconn is the company that operates the assembly portion.  I don't know who actually does the mfg of the various custom parts like the cases. I don't know if Foxconn contracts that out, or if Apple contracts that out to someone else.


Each product contains various parts. corning makes the glass in the US, Samsung mfg some parts in the US, they also use Toshiba, or someone else for RAM, SSD, which might be made in Japan or  elsewhere.  Seagate or some other drive mfg handles the hard drives either in the US or somewhere else.  So to say that Foxconn mfgs the products is a little misleading. It's basically assembly work primarily which is a sub set of what mfg does.  

 

It's still Americans that will be employees of the company performing the work, which is what ultimately matters.  Apple is at least trying to bring back mfg type jobs back to the US, which is commendable.

post #9 of 37
Quote:
Originally Posted by justamacguy View Post

How does Obama know Apple will make Macs here? Cook won't even tell us what or if Apple will build computers here.

Tim Cook already mentioned that publicly, I think you missed that public statement.  I think he made it at the last analysts conference call back in Jan.  The Mac Mini's were one line, but I think the MacPro are as well.  Supposedly, some of the new iMacs are being shipped from a Fremont location instead of China.  So if you bought a new iMac and it's a custom product that gets shipped from Fremont, the likelihood is that it was assembled there.  Either way, it's a step forward to help get people working.

post #10 of 37
Dear Appleinsider,
Please purge the racist comment immediately. I think it is the most horrible thing I've seen in print in a very long time.
post #11 of 37
Quote:
Originally Posted by drblank View Post

Tim Cook already mentioned that publicly, I think you missed that public statement.  I think he made it at the last analysts conference call back in Jan.  The Mac Mini's were one line, but I think the MacPro are as well.  Supposedly, some of the new iMacs are being shipped from a Fremont location instead of China.  So if you bought a new iMac and it's a custom product that gets shipped from Fremont, the likelihood is that it was assembled there.  Either way, it's a step forward to help get people working.

$100 million measly step forward.

Look at it this way Zukerberg gave away almost 5x the amount Apple is investing.

If you want to see a company that is actually betting on american manufacturing, look at forbs.
post #12 of 37
Quote:
Originally Posted by Techstalker View Post


$100 million measly step forward.

Look at it this way Zukerberg gave away almost 5x the amount Apple is investing.

If you want to see a company that is actually betting on american manufacturing, look at forbs.

 

Forbs...I love those types of plants.

 

http://en.wikipedia.org/wiki/Forb

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post #13 of 37

I think Apple will ship parts (made by contracted manufacturers) to the US and have assembly plants put the parts together for sale in this country.

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post #14 of 37
Quote:
Originally Posted by Suddenly Newton View Post

Mac comes home.

 

Made in USA.  Thats when there was actually people working and making technological parts and computers here.  How nice.

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post #15 of 37
Now this is brilliant: The same day Obama announces the new Mac plant as a help for the economy, arrives Tim Cook and talks about the Mac being an obsoleted product in the "post PC" era. And then some people don't understand the Apple stock decline.
post #16 of 37
Quote:
Originally Posted by ecs View Post

Now this is brilliant: The same day Obama announces the new Mac plant as a help for the economy, arrives Tim Cook and talks about the Mac being an obsoleted product in the "post PC" era. And then some people don't understand the Apple stock decline.

 

uh, what?

 

Apple's in trouble because the CEO speaks the truth or because the President name drops a successful company in the SOTU?  Please clarify.

post #17 of 37

The good news is that millions of Americans watching the speech will have heard of this for the first time. It is terrific free advertising for Apple as people will resonate with bringing jobs back to the U.S. It will produce great good will toward Apple and its products, a great PR coup.

post #18 of 37
Quote:
Originally Posted by malax View Post

 

uh, what?

 

Apple's in trouble because the CEO speaks the truth or because the President name drops a successful company in the SOTU?  Please clarify.

 

Maybe the point of the "post-PC" era is that people don't have a job, so they only need internet surfing and facebook, without any need of running professional software anymore (ie: no more need for Photoshop, Maya, MATLab, C/C++ compilers, finite element analysis, complete office packages... we no longer need any of such software because people lack a job). If that's the case, yes, I can admit Tim Cook was smarter than president Obama by foreseeing what the "post-PC" era is all about, but, well, in that case maybe he was smarter, but certainly not a patriot if he chose for the US a product line obsoleted by the "post-PC" era.


Edited by ecs - 2/13/13 at 1:43am
post #19 of 37

They've already started trials of US production haven't they? Remember those iMacs assembled in USA? http://************/2012/12/05/assembled-in-usa-imacs-are-originating-in-fremont-ca/ 

 

edit:

ugh, URL blocking, really? that's from 9to5mac dot com

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post #20 of 37
Wouldn't it be ironic if the whole manufacturing process was automated and just run by robots?
post #21 of 37
8.5 million have left the job market. Unemployment still 8%. And that is the cooked number. So let's pay the unions back by raising the minimum wage tax. Oh and about making Macintosh computers in America, what was the least profitable Apple's line? Here is some more bread to go with the circus.
post #22 of 37
Quote:
Originally Posted by justamacguy View Post

How does Obama know Apple will make Macs here? Cook won't even tell us what or if Apple will build computers here.
Cook mention in an interview that Apple will be spending 100 million dollars this years to bring Mac manufacturing to the United States. And I would also think that Cook mention that his company was bring more employment to the US on his many visits to the White House.
Edited by MrAllister - 2/13/13 at 4:37am
post #23 of 37
Quote:
Originally Posted by Digital_Guy View Post

I'm confused. Has Apple re-started its own manufacturing, or is it FoxConn that actually does the manufacturing? Isn't it actually FoxConn that will begin manufacturing Apple products in the U.S., and FoxConn that should be mentioned?
Foxconn will do anything Apple tell it to do, Foxconn will be building a large factory in either Los Angles or Detroit because Apple asked them to do so, yes maybe Foxconn should be mention as Apple partner( because they are Apple's most important partner) but it is mostly true the Apple is bring manufacturing back to the United States of America, with the help of their asian partners Foxconn.
post #24 of 37
Quote:
Originally Posted by AppleInsider View Post


As for Cook (pictured above), 2013 is the second year in a row that a person with ties to Apple has been asked to accompany the First Lady to the important event. In 2012, Laurene Powell Jobs, widow of late Apple cofounder Steve Jobs, was in attendance as the President pointed to the tech guru's ingenuity as an example of America's best and brightest.

More positive free press for Apple at the highest level! I wonder how many people world wide watched the US president praise Apple?

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post #25 of 37
Quote:
Originally Posted by geekdad View Post

More positive free press for Apple at the highest level! I wonder how many people world wide watched the US president praise Apple?

 

Well, with the slight detail that president Obama didn't actually praise Apple, but a Mac factory, which happens to be cannibalized by other Apple products, according to Tim Cook announcement stating we've now officially entered the "post-PC" era, whatever it means.

post #26 of 37
Quote:
Originally Posted by ecs View Post

Now this is brilliant: The same day Obama announces the new Mac plant as a help for the economy, arrives Tim Cook and talks about the Mac being an obsoleted product in the "post PC" era. And then some people don't understand the Apple stock decline.

Actually, I can't understand trolls like you.

Cook never said that the Mac was being obsoleted. Jobs stated that we're entering a 'post-pc' era where PCs will always continue to be sold and consumers will also be buying mobile devices like the iPad - where Apple has an overwhelming lead. In case you haven't noticed, Apple's Mac sales are higher than they've ever been (other than the last quarter where they had supply problems and none of their main product to sell for most of the quarter).

So please explain how that's bad news.
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post #27 of 37
Quote:
Originally Posted by ecs View Post

 

Well, with the slight detail that president Obama didn't actually praise Apple, but a Mac factory, which happens to be cannibalized by other Apple products, according to Tim Cook announcement stating we've now officially entered the "post-PC" era, whatever it means.

Having the Apple CEO a guest of the president of the most powerfull country in the world...then mentioned in a positive light. How can that possibley be bad?

This was watched by (i'm guessing) a billion or more people accross the globe. They see the Apple CEO..... they hear the president praise the company. How in the world could this be bad?????

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post #28 of 37
Quote:
Originally Posted by currentinterest View Post

The good news is that millions of Americans watching the speech will have heard of this for the first time. It is terrific free advertising for Apple as people will resonate with bringing jobs back to the U.S. It will produce great good will toward Apple and its products, a great PR coup.

The question now is, will Samsung be able to copy this PR strategy?
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post #29 of 37
Quote:
Originally Posted by geekdad View Post

Having the Apple CEO a guest of the president of the most powerfull country in the world...then mentioned in a positive light. How can that possibley be bad?

This was watched by (i'm guessing) a billion or more people accross the globe. They see the Apple CEO..... they hear the president praise the company. How in the world could this be bad?????

Whilst I agree this is good PR for Apple, I think you might be over-estimating the audience of a billion, i.e. almost 1 in 7 people on the planet.  Most people outside of the U.S. wouldn't have seen this - I don't think it was even shown in the UK, maybe on one of the news channels. Hell, most of the people I know wouldn't even know that such a thing as the State of the Union address even existed, let alone seen it.

post #30 of 37
Quote:
Originally Posted by ecs View Post

Well, with the slight detail that president Obama didn't actually praise Apple, but a Mac factory, which happens to be cannibalized by other Apple products, according to Tim Cook announcement stating we've now officially entered the "post-PC" era, whatever it means.

What it means, as you well know but pretend not to, is that the tablet will be selling in the hundreds of millions per year (he said "triple"), and bringing therefore millions of new Apple users into the system, thus continuing the growth in Mac sales and the decline in PC (Windows) sales.

You know this—you can't not know this because he made it very clear—but you are bent on bumming out the thread.
post #31 of 37
Americans working for Foxconn.
post #32 of 37

I still think it remains to be seen where Apple's final manufacturing point will be in the US. Union labor is expensive ... even more so in California.  Any company - even one with the amount of money that Apple has - is going to be looking at the bottom dollar and how those increased manufacturing costs cut into their profit margin. Hell, investors and Wall Street went nuts when Apple went from 44% to 38% gross margin in the holiday quarter.  You think they'll like losing another 2-3% to increased manufacturing costs in states with high labor and tax rates? I thought the cost of manufacturing in California was one of the primary reasons Tim Cook shipped the last few hundred jobs at Elk Grove over to China several years ago?  I wouldn't necessarily be surprised if they return to a state other than California.

 

That being said, Apple has generally ignored investors for most of their history.  Maybe Cook and the Board see bringing jobs into California as a way for them to gain some PR ground lost over the past year, lower margins be damned. Also, the Mac Mini and Mac Pro are small volume products compared to their notebook lines. Maybe they've finally hit a volume point where the costs of getting the necessary components to China for final assembly is just about even with just shipping them to the Wes coast.

 

One thing you can always say about Apple ... the ride they'll take you on is sometimes exciting, sometimes frustrating, but always interesting!

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post #33 of 37
Quote:
Originally Posted by reefoid View Post

Whilst I agree this is good PR for Apple, I think you might be over-estimating the audience of a billion, i.e. almost 1 in 7 people on the planet.  Most people outside of the U.S. wouldn't have seen this - I don't think it was even shown in the UK, maybe on one of the news channels. Hell, most of the people I know wouldn't even know that such a thing as the State of the Union address even existed, let alone seen it.

You have a good point.....thats why I said I was guessing at how many people might have seen it. I wonder though how many timesparts of it will be re printed and quoted by various websites/blogs and print media accross the globe? Its still a great dose of free advertising for Apple....its a good thing.

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post #34 of 37

The iPhone is assembled in China from parts made all over the world. If you would like to see more of the real story of who is making money off the iPhone, see the diagram below. It is a little complex, but you can see that the iPhone is a "Global" phone and saying it is made in China is actually ridiculous. It is only assembled in China from parts made everywhere, including the US.

 

"The final assembly and customization of the iPhone takes place at the Foxconn factory in Shenzhen, China, a complex that employs 250,000 workers. Foxconn is a subdiary of the Taiwanese electronics manufacturer Hon Hai Precision Industry Company which specializes in contract manufacturing. For each iPhone imported in the United States, its entire factory gate price ($194.04 in this case) is attributed as a trade deficit with China. In reality, only about 3% of the wholesale added value takes place in China, with the bulk of it concerning Korean and German suppliers (mostly for flash memory and tactile screen). In this case, the product exaggerates the true extent of trade imbalances since the country of origin accounts for a small share of the total added value of the good. By controlling distribution and marketing, Apple is able to capture about 45% of its total value."

 

post #35 of 37
Quote:
Originally Posted by nunyabinez View Post

The iPhone is assembled in China from parts made all over the world. If you would like to see more of the real story of who is making money off the iPhone, see the diagram below. It is a little complex, but you can see that the iPhone is a "Global" phone and saying it is made in China is actually ridiculous. It is only assembled in China from parts made everywhere, including the US.

"The final assembly and customization of the iPhone takes place at the Foxconn factory in Shenzhen, China, a complex that employs 250,000 workers. Foxconn is a subdiary of the Taiwanese electronics manufacturer Hon Hai Precision Industry Company which specializes in contract manufacturing. For each iPhone imported in the United States, its entire factory gate price ($194.04 in this case) is attributed as a trade deficit with China. In reality, only about 3% of the wholesale added value takes place in China, with the bulk of it concerning Korean and German suppliers (mostly for flash memory and tactile screen). In this case, the product exaggerates the true extent of trade imbalances since the country of origin accounts for a small share of the total added value of the good. By controlling distribution and marketing, Apple is able to capture about 45% of its total value."




Nice graph and I like the way they explain things, but it always bugs me when "other" is so large. Why bother reporting Japan at $0.70 when 'Other' is over $60.00?

Quote:
Originally Posted by AgNuke1707 View Post

I still think it remains to be seen where Apple's final manufacturing point will be in the US. Union labor is expensive ... even more so in California.

Unlikely that they'd do it in CA. And while union labor is expensive, there's not all that much labor involved in assembling a phone - especially with appropriate automation.
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post #36 of 37
Originally Posted by Slurpy View Post
…do you find it necessary for people to read that with every single one of your posts?

 

I like it better when he doesn't post and just thumb-ups others' posts. It's a two-for: we don't have to see his stuff and it roots out other like-minded… users.

post #37 of 37

Now, there's a scary thought. Would it be possible to block him from up-thumbing a post? I'd hate to find myself in the awkward position of having made a comment and then see he actually goes and AGREES with it! :(

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