Tuesday, December 01, 2015
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
WD, Samsung Lead The HDD And SSD Markets
4K Copy Protection Probably Cracked
AMD To Correct GPU Fan Control Issues With New Crimson Drivers
Google Outlines The Gifts We're Searching For This Holiday
Microsoft Launches New Office 365 Enterprise Capabilities, Dynamics CRM 2016 and Introduces PowerApps
BlackBerry is Exiting Asian Country Following Government Pressure
TDK To Buy Semiconductor Factory From Renesas Electronics
Swatch Parners With Visa On Pay-by-the wrist Payments
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 Home > News > PC Parts > Cook's ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Friday, December 07, 2012
Cook's Hints On U.S. PC Outsourcing Is A Symbolic, Marketing-driven Move

Apple CEO Tim Cook said his company will shift manufacturing of one computer line from Asia to the United States starting next year, in a symbolic effort to help improve Apple's public image.

Media reports did not specify how much Apple manufacturing will be conducted in the U.S., or exactly which product was involved, but the scale and magnitude of the move is not expected to be major.

"The percentage of production likely to be shifted by Apple from Asia to the United States in 2013 is likely to be negligible, both for the company and for PC industry at large," said Craig Stice, senior principal analyst for computer systems at IHS. "Apple's move appears to be a symbolic effort to help improve its public image, which has been battered in recent years by reports of labor issues at its contract manufacturing partners in Asia. However, given Apple's high profile in the market, the company's 'insourcing' initiative could compel other companies to follow suit and transfer production to the United States over the next few years."

Apple is apt to shift only a small percentage of its total production to the United States next year. At the same time, the company is a relatively small player in the global PC market. With the vast majority of PCs now being produced in Asia by contract manufacturers, Apple?s move is unlikely to spur a major shift in production from Asia to the United States.

In the global PC market, Apple is ranked No. 6, with a 5.8 percent share of global shipments in the third quarter of this year, according to data released by IHS.

Apple makes extensive use of contact manufacturing services, with all of its production of notebook PCs outsourced to Quanta Computer Inc., Foxconn Electronics Inc. and occasionally Pegatron Corp., which are original design manufacturers (ODMs) and EMS providers based in Taiwan that have manufacturing operations in China.

Given Apple's extensive overseas production, the total percentage of the company's cost of goods sold (COGS) shifted from China to the United States in 2013 is prone to be very small. If Apple only moves production of one segment of its Macintosh product line, as reports indicate, the total shift in COGS could amount to less than 1 percent in 2013. Still, the move has some precedent in other circles.

"While Apple's action appears largely to be a public-relations play, there are some real business justifications for technology companies shifting the production of certain types of products from Asia to the United States," said Jeffrey Wu, senior analyst for OEM research at IHS. "Among these are rising labor costs in China, faster time to market and reduced costs in configuration and shipping. It's not uncommon for original equipment manufacturers (OEM) to build bulky products, a category that could include desktop PCs, close to their end markets to offer timely configuration and save on logistics costs."

Just the same, Wu said Apple would be less inclined to shift production of other, smaller products to the United States.

"I cannot imagine that Apple will transfer the manufacturing of its highly standardized and much slimmer products - i.e., iPhones, iPads and iPods - back to the United States in the near future," Wu added.

Wu noted that both Quanta and Foxconn have some small manufacturing operations in the United States. Thus, even while some PC shifting production to the United States, Apple likely will still be using its Asian-based manufacturing partners to conduct this work.

Chinese computer-maker Lenovo Group Ltd. in October also said it would start making PCs in North Carolina next year.

"Lenovo's announcement appears to have flown under the radar - while Apple's move has dominated the headlines," Stice noted. "Apple is a company that is always in the spotlight, and the company's image sets the standard in the PC world. If Apple is doing it, will others follow?"

Google To Charge Businesses For Using Google Web Apps        All News        Plextor to Debut Enterprise-grade SSD At CES
"Voice Guide" and "Explore by Touch" Features Coming to Kindle Fire and Kindle Fire HD 7     PC Parts News      Plextor to Debut Enterprise-grade SSD At CES

Get RSS feed Easy Print E-Mail this Message

Related News
Apple To Brings Apple Pay To China
Apple To Shut Down Beats Music
Apple Plans To Offer Person-to-person Payment Service: report
Apple Announces 1000 New In Ireland, Gets Ready For Tax Ruling
iPad Pro Available to Order Online Wednesday
iPhone, Apple Watch And App Store Drive Apple's Revenue Growth
Apple To Promote Low-Carbon Manufacturing in China
Tim Cook Talks About Apple Music, Apple TV And Apps
Apple Faces Damages Over Chip Technology Patent Infringement
Apple Ads Retina Displays To All iMac Family
Apple Removes Apps From Online Store
Apple's iBooks To Offer Enhanced Editions of Harry Potter Series

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .