Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Apple/Mac
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Some Macs To Be 'Made in the U.S.A.'

Some Macs To Be 'Made in the U.S.A.'
By Adam Dickter

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"Given the premium pricing of the Mac product lines, they probably offer high enough margins for Apple to pursue this course profitably," said analyst Charles King. "Then again, Macs represent such a financially minuscule part of Apple's overall business that whatever hit the company might risk would be well worth the 'attaboy' praise."
 


A future line of Macintosh computers built by Apple will have a feature not seen since the '90s: a "Made in the USA" label. CEO Tim Cook on Thursday announced the company would invest $100 million in a Mac plant in the United States in a move that could help boost the economic recovery -- and perhaps Apple's flagging stock price.

The move will in part be full circle for a computer whose forerunners were born in the California garage of Apple co-founder Steve Jobs and that has been produced in Asia since the early '90s.

Interesting Timing

Cook's announcement came a day after Apple shares took their biggest nosedive in four years, falling 6.4 percent, or $37.05, to close Wednesday at $538.79. That meant a loss of $34.9 billion in market capital. Some analysts were dumbfounded by the turn, but others saw it as a sign of recognition that competition in the smartphone and tablet markets -- now Apple's top revenue producers -- is starting to take a toll.

The U.S. manufacturing news changes the channel on that bad news and highlights the company's ability to invest capital, though the $100 million is a drop in the bucket of Apple's holdings.

NBC broke the news from Cook Thursday morning that an existing line of computer production for Macs will be moved from China to the U.S. The exec also told Bloomberg BusinessWeek "we'll be working with people, and we'll be investing our money," suggesting partners in the U.S. venture.

Apple has not revealed further information about which computers will be produced here. The company has faced considerable criticism over working conditions and wages at the Foxconn plants in China where iPads, iPods and iPhones are produced.

Despite the timing, the announcement seems part of a long-term goal and plan.

"Apple would not likely change manufacturing for PR purposes," said Michael Gartenberg, a technology analyst at Gartner Research. " I would imagine it's a goal of Apple to invest as much as they can in the U.S. while staying competitive and profitable. From Mr. Cook's comments it's clear they believe they are capable of doing so."

But another analyst, Charles King of Pund-IT, noted that public opinion, particularly after this year's economically divisive presidential race, has been increasingly anti-corporate.

"Since the 1980s, businesses and corporate leaders in the U.S. have accrued huge economic and political power but there are serious and growing questions about just how that has benefited the citizens and taxpayers who often directly subsidized that largess," King said.

Scoring Brownie Points

So by investing in American jobs and productivity, Cook appears to be thinking proactively to position Apple as a good corporate citizen as Congress during the second Obama administration mulls legislation that could impact profitability.

But King noted that Cook's statement leaves open the possibility that Apple may for the first time outsource some of its computer manufacturing processes, which could affect the price tag.

"Given the premium pricing of the Mac product lines, they probably offer high enough margins for Apple to pursue this course profitably," King said. "Then again, Macs represent such a financially minuscule part of Apple's overall business that whatever hit the company might risk would be well worth the 'attaboy' praise the company will earn from political leaders."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Apple/Mac
1.   Popular Mailbox App Comes to Mac
2.   Apple Opens China iCloud Data Center
3.   Android Crushing Smartphone Rivals
4.   Apple Bans Toxic Factory Chemicals
5.   Apple's Workforce Mostly White, Male


advertisement
New App To Manage Time Better
Helping to organize your busy life.
Average Rating:
Popular Mailbox App Comes to Mac
Takes to-do list approach to the inbox.
Average Rating:
Apple Bans Toxic Factory Chemicals
Cleans up China production of iPhones.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 
Premier FBI Cybersquad in U.S. To Add Agents
After helping prosecutors charge Chinese army officials with stealing trade secrets from major companies and by snaring a Russian-led hacking ring, the premier FBI cyber-squad is getting a boost.
 
Apple Opens iCloud Data Center in China
Treading lightly, Apple acknowledged it has started to store encrypted iCloud personal data of some Chinese users on servers in mainland China, operated by the state-owned China Telecom.
 

Enterprise Hardware Spotlight
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 
Cisco Axes 6,000 Employees in Restructuring Plan
Faced with declining profits, Cisco is laying off up to 6,000 employees in the months ahead -- a whopping 8 percent of its global workforce. That's in addition to the 4,000 jobs Cisco cut last year.
 
Web Slows, Have Internet Routers Reached The Limit?
If you encountered problems connecting to the Internet on August 12, you weren't alone. Networking experts blame the wide-scale slowdown on outdated routing systems that are reaching their limits.
 

Mobile Technology Spotlight
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 
Sprint Comes Out with Data Guns Blazing
As its new CEO promised, Sprint has rolled out a new aggressively competitive price plan. The shared data plans promise twice the high-speed data and at lower prices than AT&T and Verizon Wireless.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.