Apple to return some Mac production to US

NICOLA LESKE
Last updated 08:54 07/12/2012
Tim Cook
Reuters
COMING BACK: Apple CEO Tim Cook has indicated that production of Macs will return to the States.

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Apple Inc is planning to bring back some of its production of Mac computers to the United States from China next year, Chief Executive Tim Cook said, according to a report.

The company will spend more than US$100 million to build the computers in the United States, Cook was cited as saying in an interview with Bloomberg Businessweek.

"This doesn't mean that Apple will do it ourselves, but we'll be working with people and we'll be investing our money," Cook said.

He told NBC's "Rock Center" program in an interview that only one of the existing Mac lines would be manufactured exclusively in the United States.

Cross research analyst Shannon Cross said it made sense for Apple to bring back some of the manufacturing to the United States because certain components were already being produced here and Apple's design required unique tools.

"It would also be a marketing boost when you have 'Made in America' on the products and it can mitigate technology risks," she said, referring to intellectual property theft.

Cross also said that labour costs have increased in China but "if you look at energy costs, currency costs and time to market, it's a combination of things."

Certain tech products, such as iPads, are largely made overseas, often in subcontracted factories not owned by the brands whose products they are making.

Cheaper labor costs have been key in encouraging US manufacturers to have move production to China, but with Chinese wage and transportation costs rising, the advantage against the United States has narrowed in recent years.

"Will they shift back everything? No," Cross added.

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- Reuters

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