Wednesday, January 9, 2013

Apple to move some Mac production to US in 2013

Apple is planning to bring back some Mac production to the US next year in what could signal a major shift from its reliance on cheap Chinese manufacturers.

The companys CEO, Tim Cook, announced the change in policy in an interview with Bloomberg, which will see over $100 million being spent to put everything in place.Apple will not be doing the production itself, but rather will outsource it to another company in the US, much like it currently does with Chinese firms. The costs are likely to be higher, but the good PR from the move will be significant.Apple has been the subject of much criticism in recent years over poor working conditions at the facilities of manufacturers and suppliers it uses in China. It has also been condemned for shipping jobs overseas, a general issue that featured prominently in the recent US presidential election.The production shift will include manufacturing of components and final assembly, so there will likely be several lucrative contracts up for grabs. However, only one of the Mac product lines will be made exclusively in the US.While some have praised the move as a positive first step to restoring the US manufacturing industry, the sheer difference in costs between production in the US and production in China will make it a difficult move to follow up on. However, it might just be enough to encourage other companies to make similar changes.Source: Reuters

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