Newsletters
Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Computing Digital Life Discovery Space More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Computing
Average Rating:
Rate this article:  
Some Macs To Be
Some Macs To Be 'Made in the U.S.A.'

By Adam Dickter
December 6, 2012 5:03PM

Bookmark and Share
"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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Computing
1.   Hortonworks, Concurrent To Partner
2.   Microsoft, BMC Targeting VMware
3.   APX Labs Aims To Put Glass in Business
4.   AT&T Expanding Its Gigabit Broadband
5.   How Are Web Sites Post-Heartbleed?


advertisement
Microsoft, BMC Targeting VMware
Deal simplifies cloud management.
Average Rating:
How Are Web Sites Post-Heartbleed?
Questions on open source, security.
Average Rating:
Heartbleed Exploit Could Cost Millions
But it could have been prevented.
Average Rating:


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

Network Security Spotlight
Verizon Data Breach Report Exposes Top Threats
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
White House Updating Online Privacy Policy
A new Obama administration privacy policy explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, saying much is in the public domain.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
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 | XML/RSS Feed

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.