Apple to manufacture Mac line in the US
NBC News: In an interview with Brian Williams airing tonight on “Rock Center,” Apple CEO Tim Cook says one of the existing Mac lines will be manufactured exclusively in the US next year.
Cook says he believes it’s important to bring more jobs to the US. “We’ve been working for years on doing more and more in the US,” he says.
Photo credit: NBC News
There have been rumblings that the new iMac was being manufactured in the U.S., but now we have confirmation that at least something is U.S.-produced.
Prepare to see some pretty expensive Mac products
For those who thought Macs were expensive before!
I wonder how much this is going to add to the final costs or are we going to see a decline in quality to make up for it?
Probably both. Higher prices and relaxed quality control standards.
Not surprised this was reblogged by shortform blog with no criticism. I think economic protectionism is a requirement for being a left-wing hack.
To be fair, I doubt Mac prices are going to increase much. There are substitutes. Apple is not the only computer producer. Apple products’ demand curves are probably pretty elastic. I don’t like the economic fallacy that it’ll create jobs; we need wealth, not jobs. But regardless of that, it was probably just a PR ploy to increase sales.
Also, why would we see a decline in quality?
I think Mac’s play here is to either lose some of the profit margin on an already high profit product or to slightly increase the price of an already high priced product to retain profits.
Either way, they probably won’t lose too much business since they are only moving a small portion of their product line manufacturing to America. Their phones, ipads, monitors and accessories will still be made overseas.
I think this is a move Apple is making to combat losing ground to Samsung, without having to innovate or invent new technology but by shifting the business model around in two ways:
1. Marketing. This is a great way to try and win over a lot of the population that adheres to the baseless “I buy American Made” ideology.
2. Get ahead of the shifting public opinion. People are starting to realize that Apple makes tons and tons of profits by paying people in poorer countries to make Apple products. The amount Apple makes in profit per phone is greater than what some companies sell their phones for. Apple is also facing a lot of public scrutiny from the suicide factories that produce their products.
Overall, this will probably cost Apple very little in lost sales or lost profits in the short-term and in the long-term this move will act as a marketing ploy and, as Apple hopes, will win over more customers and keep them brand loyal.