Apple CEO Claims Company Will Pay $100M To Shift Some Mac Manufacturing Back To The U.S.

By: Talha Bhatti  |   December 10th, 2012   |   Apple, Business, News

California based technology giant, Apple, stated that it has plans to shell out $100-million in 2013 to start making Mac computers in the United States. This will shift a tiny part of the company’s manufacturing process from China to the U.S. but leave a very major part of the assembly process overseas.

 

Apple CEO, Tim Cook stated in an interview with Bloomberg Businessweek that, “Next year we’re going to bring some production to the U.S. This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money.”

 

Apple had been making its products in the US until the end of the 1990s when it shifted its manufacturing to China to save on labour costs. The cost to bring back some assembly to the America will not affect profits and will only use a tiny portion of the company’s $121.3-billion cash pile. However, observers believe that the decision by Apple shows the pressure businesses feel to develop domestic jobs. Cook stated that, “I don’t think we have a responsibility to create a certain kind of job. But I think we do have a responsibility to create jobs.”

 

Cook spoke about a number of things in the interview including Steve Jobs, Samsung and firing of Senior Executives. However, he did not mention exactly where any new plant would be set up or how much of the assembly would the place in the US but did say that Apple would have partners and the operations would not be just final assembly.

 

Not all of Apple’s production takes place in Asia and the company does make many parts of the iPhone and iPad in America. For example the display glass is made in Kentucky. Cook also added that Apple was responsible for a lot of jobs being created in the software industry thanks to the iPhone and its app development and sales culture.

 

Source: Financial Post