After a lot of negative publicity generated by the poor labor practices of at least one of its Chinese suppliers, Apple is now considering making iMacs in the United States.
As noted by CBS MarketWatch: “In what would be a major departure from its previous manufacturing practices, Apple appears to be assembling some iMacs in the U.S., CNET reports. Such a shift could indicate a wish by Apple to distance itself from some of the PR headaches it has faced over the years stemming from its use of overseas labor. More broadly, the company’s reputation for cutting-edge business practices could augur a move by other technology companies to return manufacturing jobs to the U.S. That would be provide a badly needed boost for the domestic manufacturing sector, which new data show shrank in November to a three-year low. Apple did not immediately respond to an inquiry regarding the report.”
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Apple has problems producing high yields of the new iMacs (and the iPhone 5 and iPad mini) because of the precise manufacturing. It’s quite possible that they are on-shoring iMac assembly to America only temporarily until their foreign factories are up to speed. We won’t really know until these models have been in production for longer. The higher cost of these products makes it easier to soften the impact on margins. It would be great to have more products made in the US, and I do expect Apple to take the lead on this.
http://www.xbitlabs.com/news/other/display/20121126234950_Apple_to_Begin_Shipping_New_iMac_21_5_This_Friday_Delay_27_Version_to_December.html
good comments
Well, it’s official as of this morning actually: production of iMacs will move entirely to the US in 2013.
http://www.businessweek.com/articles/2012-12-06/tim-cooks-freshman-year-the-apple-ceo-speaks#p9
This is a great move by Apple. They can distance themselves from the PR problems that they have had this past year. Not to mention it could help Apple generate more revenue from iMacs purchased by American consumers, since Apple may be seen as trying to help the recovering American economy. Apple always try’s to have their image as one of social responsibility and this could help that image in America.
Apple Apple Apple. Always making the first move. I actually like this a lot. I think it will stimulate jobs and definitely cause other companies to follow the trend (like they always do). I wonder what effects this will have on the actual product though. Better/Worse quality, more/less expensive, etc.
The truth is that Apple is already producing some of its materials used in Ipad, macbooks and iphones in the US. Specifically the glass for all Ipads is coming from New York, while it is being shipped in China where assemblies cost is much lower. The fact that they are moving production in the US, is a coincidence of globalization and the impact that it has in global logistics channels.