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Apple allegedly shaking up supply chain as manufacturers no longer obtain components - Page 2

post #41 of 65
Quote:
Originally Posted by Dick Applebaum View Post


I think there are some high-skilled, well-paying jobs associated with robotic high-tech manufacturing/assembly/testing/packaging -- but not as many low-paying assembly-line jobs,

My late father-in-law operated a punch-press for 40 years in a US Steel factory outside of Pittsburgh. Those jobs are gone! I read recently that much of the assembly lines for Apple products are manned by people -- not because they are needed, but because the Chinese Government requires it... kinda' a national union.

IMO, the keys to bringing manufacturing back to the US include:
  • automated high-volume manufacturing
  • high-skilled jobs setting up and monitoring the automated manufacturing
  • making the automated manufacturing machines/lines, themselves
  • ability to reset manufacturing machines/lines in days or weeks rather than months
  • rigorously managed and controlled supply chain

There will be a lot fewer, but higher-paying, higher-skilled jobs directly involved in the manufacturing.

But, the fanout of the "support community" needed by automated manufacturing will replace the lost assembly-line jobs...

I mean, the restaurants, dry cleaners, real estate agents, plumbers, school teachers, super market clerks, gardeners, UPS delivery men, road construction workers, salesmen, web article writers...


I'll give you an example how high-tech fanout can affect a community;

IBM transferred me to a Job in Palo Alto in 1973. We looked at houses in the area, including the sleepy little town of Cupertino. We bought a little South of there in the Village of Saratoga. I could drive the 15 miles to my job in Palo Alto in 25 minutes during rush hour;

In 1978 we opened a Computer store in Sunnyvale. I could drive the 7 miles to/from the store in 12-15 minutes during rush hour.

Right in the middle, about 4 miles from home is Cupertino (and this little company called Apple).

Skip ahead to 1989 when we sold the stores.

Apple and Cupertino had grown exponentially... thousands of people and jobs fanned out in the communities surrounding Apple. Several freeways had been built or extended. Rush hour had also been extended to any time between 6:00 AM to 7:00 PM...

It took 45 minutes to drive the 7 miles from our home in Saratoga to our Sunnyvale store.

Apple didn't do any manufacturing in Cupertino but a massive fanout of non-Apple jobs grew to support the growing Apple business...

I would SWAG estimate that for every [relatively] high-paying Apple Job -- that were 10-20 lower-paying non-Apple jobs.


And, here's the real benefit... the opportunities provided (both within and without Apple) are essentially unlimited -- to those who can focus and apply themselves.

It was a matter of pride to us that many of our computer store employees went to work at Apple and became successful in their own right!

 

Seems a lot of people suspected that I did not welcome the prospect of large scale highly automated manufacturing growing by leaps and bounds in the U.S.  I am excited by the possibility, I only mentioned the jobs angle because there are folks who will expect hundreds of thousands of assembly line jobs will be created.  No they won't, but it's still a huge net plus for the U.S. because of reasons like you laid out.

Here's the thing though.  If robotic manufacturing explodes as we hope in this country, there won't be enough locally trained engineers and skilled technicians to oversee those factories.  We will need to make sure the educational system and skilled immigration programs are up to the job.

 

Second, this will contribute to the further bifurcation of the economy into a higher income sector of capital owners and highly skilled, knowledge-based workers and a vast lower income sector that will make up the rest of society who sell man-hours not knowledge to make a living.  In other words there will be people whose job involve pushing the buttons that make machines run, there will be people whose job is to make sure the machines run when the button is pushed, and there will be people who own the button (and the machines that they run).  Your prospects in life depend on who you are and what you do relative to the button.

post #42 of 65
Originally Posted by bobbyfozz View Post
WHAT on earth has GORE added to the mix to make Apple money?

 

EnergyStar.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #43 of 65

This is probably fairly huge. By being the "procurement specialists" Apple will be more flexible with their manufacturers -- being able to replace them quicker, and have larger scales on their purchases as the manufacturers aren't procuring (of course). It also means they are going to be able to have more profits, or be able to pay better. IF apple choose to PAY BETTER, that means they've got more pull in the market (they drop orders for others before Apple).

 

Seems like Apple is looking at being able to dominate procurement.

 

ALSO, this may have an impact on moving more production back to the USA because the supply-chain is more of an issue in insourcing than are wages. It might mean that Apple is more serious about "made in the USA" than a cynical person might think.

post #44 of 65
Quote:
Originally Posted by Tallest Skil View Post
 

 

EnergyStar.

He used to be on their board of directors.

 

Good to know that he is still alive rather than merely serving as a foil for Global Warming Deniers.

post #45 of 65
Originally Posted by Fake_William_Shatner View Post
He used to be on their board of directors.

 

Oh, EnergyStar’s? I didn’t know that. I just meant he’s probably the key pusher behind Apple’s environmental whatzahoozits. 

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #46 of 65
Quote:
Originally Posted by SpamSandwich View Post

It'll be just a matter of time until Apple buys the mining and oil companies. Own the entire supply chain, folks! 1wink.gif

I can see Apple buying up the total production of a certain rare earth metal and having first dibs on the supply...

THEN I can see Samsung copying Apple by trying to corner the market of something like Silicon... and yes, I know where Silicon comes from...
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #47 of 65
Originally Posted by Macky the Macky View Post
…and yes, I know where Silicon comes from…

 

Silly cones?

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #48 of 65
Regarding GORE and Energy Star. Gore is the same guy who had a palatial house with every light in it turned on according to one photograph I saw. Gore was a hypocrite because at the same time he was advocating energy saving by all Americans--except of course, him. He was "told" to tone it down. What else did he need, he already invented the internet?
post #49 of 65
Quote:
Originally Posted by tundraboy View Post

Here's the thing though.  If robotic manufacturing explodes as we hope in this country, there won't be enough locally trained engineers and skilled technicians to oversee those factories.  We will need to make sure the educational system and skilled immigration programs are up to the job.

Second, this will contribute to the further bifurcation of the economy into a higher income sector of capital owners and highly skilled, knowledge-based workers and a vast lower income sector that will make up the rest of society who sell man-hours not knowledge to make a living.  In other words there will be people whose job involve pushing the buttons that make machines run, there will be people whose job is to make sure the machines run when the button is pushed, and there will be people who own the button (and the machines that they run).  Your prospects in life depend on who you are and what you do relative to the button.

I especially like your last paragraph... it has an interesting perspective. However, moving ahead a bit more: We are within decades (circa 2030 to 2045) of complex machines being able to make other higher complex machines (a la 3D printed metal components). At the same time AI advancing to where simpler computers being smarter than humans at programming other computers with more smarts than the programming computers... so we arrive at a point that super intelligence is creating things we cannot understand with our limited minds (and by the time we sort of figure something out, the super-intelligence has moved so much further ahead we understand it even less. What will this do to the "highly skilled, knowledge-based workers" in your paragraph above? We are only talking about life 15 or so hence...within the productive lifetime of some current "knowledge-based workers." It's a future I struggle to imagine.
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
post #50 of 65
Quote:
Originally Posted by bobbyfozz View Post

Regarding GORE and Energy Star. Gore is the same guy who had a palatial house with every light in it turned on according to one photograph I saw. Gore was a hypocrite because at the same time he was advocating energy saving by all Americans--except of course, him. He was "told" to tone it down. What else did he need, he already invented the internet?

I think that while Gore had a lot of bright bulbs, he is sort of a dim bulb himself... as are most politicians. He is well connected politically, and that may be his greatest contribution on the board...besides his rarified view of the planet...
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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post #51 of 65
Quote:
Originally Posted by NeoTheta View Post

This should dramatically reduce the supply chains rumors as well.

One can hope.

While It may well reduce the number of rumors, those that do get spun will likely be based on more guessing and therefore less accurate. Since we are on the subject has anyone here heard of the rumor that apple's next release of iDevices will be based on organic molecules? As I understand it the cases will absorb chemicals from the user's hands and breath to greatly extend the power the circuitry...which in itself will be completely run in a state of fuzzy logic; much like how the human brain is wired.

Very interesting if true.
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
post #52 of 65
Quote:
Originally Posted by Macky the Macky View Post

Quote:
Originally Posted by bobbyfozz View Post

Regarding GORE and Energy Star. Gore is the same guy who had a palatial house with every light in it turned on according to one photograph I saw. Gore was a hypocrite because at the same time he was advocating energy saving by all Americans--except of course, him. He was "told" to tone it down. What else did he need, he already invented the internet?

I think that while Gore had a lot of bright bulbs, he is sort of a dim bulb himself... as are most politicians. He is well connected politically, and that may be his greatest contribution on the board...besides his rarified view of the planet...

The dim bulbs are the people claiming that he said he invented the internet. He made no such claim.
post #53 of 65
Quote:
Originally Posted by HuskyOffset View Post

The dim bulbs are the people claiming that he said he invented the internet. He made no such claim.

I read it on the internet... you can't get more accurate than that!!
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
Reply
post #54 of 65
His also gives Apple more direct control over monitoring labor, safety, pollution issues instead of third parties contracting with suppliers without Apple in the loop. As to the Arizona sapphire component plant, it only makes since to hold the technology Crown Jewels here rather than doing it in Asia to better protect their IP from getting knocked off.
post #55 of 65
I don't want to say too much about it , but Al Gore is the impetus behind Apple's coming space program¿

Also, for real, he's the only politician who could legitimately be called a futurist, and of course he's such an environmentalist that he could never be elected unless there's a major die-off of the SUV party.

For all we know, he could be one the main ones pushing for Apple's impressive renewable energy investments at its data centers and other buildings.
post #56 of 65
Quote:
In addition, going forward OEMs will not be required to maintain standing component inventories, which DigiTimes claims will also reduce pressure on those partners.

As for what Apple's alleged changes in component procurement mean for the company going forward, Cook himself has cautioned that attempts to read into pieces of data regarding the supply chain are foolish endeavors.

 

Isn't it magical how in all but the most ineptly written sentences, the pretentious, redundant, business speak phrase, "going forward," can be removed—resulting in a far more direct and clear communication?

I guess because eliminating it is so magical, nobody believes they can do it . . . going forward.

post #57 of 65
Bottom line is, going forward we're just going to kick the can down the road. Having said that, we could push the envelope and think outside the box. Are we are all on the same page here?
post #58 of 65
Quote:
Originally Posted by Flaneur View Post

Bottom line is, going forward we're just going to kick the can down the road. Having said that, we could push the envelope and think outside the box. Are we are all on the same page here?

Yes we are.

Your observation is "impactful!"

post #59 of 65
Thanks. At the end of the day, it's all about the bells and whistles.

Edit: I wish it was the end.
Edited by Flaneur - 11/20/13 at 8:49pm
post #60 of 65
This story really intrigues me because it brings to mind the long-obsolete Soviet mantra of centralized planning. If Tim Cook can make it work so well, how come Stalin couldn't?

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply
post #61 of 65
The repeated use of "going forward" grates. Please desist.
post #62 of 65
Quote:
Originally Posted by Kibitzer View Post

This story really intrigues me because it brings to mind the long-obsolete Soviet mantra of centralized planning. If Tim Cook can make it work so well, how come Stalin couldn't?

 

Cook pays better and based on merit.  Also helps that Cook does not execute dead weight.

post #63 of 65
Quote:
Originally Posted by sog35 View Post

Cook pays better and based on merit.  Also helps that Cook does not execute dead weight.

Ha! You mean he doesn't execute the intellectuals?
post #64 of 65
Just-in-time manufacturing can save money, but you've got to be extremely careful not to single-source components. And that avoidance of single-sourcing means not even having them come from the same locale. If a quake or typhoon takes out the only factories making a key component, you're in big, big trouble.

Sometimes I worry that our world is getting a bit too interconnected and interdependent. My father grew up on a farm where they grew or made almost everything they needed. In a pinch, that almost everything could become everything. Not so today. Even worse, there are many, many people who wouldn't know what to do if their electricity or water failed.

I'm not a prepper, but there is something to their fears.
post #65 of 65
Quote:
Originally Posted by timmillea View Post

The repeated use of "going forward" grates. Please desist.

Yes, use "At the end of the day..." or "On a forward-looking basis..." instead. 1wink.gif

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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