Apple rethinking its strategy of where their manufacturing takes place
By Adina Moloman
Source: CNN Money
Apple CEO Tim Cook announced last week that the company would move some production of one of its existing lines of Mac computers from China to the United States.
He mentioned about a small, almost a symbolic investment of 100 million in 2013 to move production of the line to the U.S. from China.
Many IT companies are rethinking their strategy of where the manufacturing takes place; so many of them are bringing high-end production back to the US. Many of these companies are mentioning reasons such as the political risks and the environmental cost of doing business in China, the labor cost, where the Chinese wages are raising 15 to 20 percent per year, etc.
In such case, many IT companies are setting up manufacturing facilities in California and also are counting with Tijuana Manufacturing establishments to produce close to its main market.
The advantages of bringing back the production into north America are the saving on shipping and other distribution costs making the production time shorter, the protection of the intellectual property rights and the speeding in design and innovation.
According to different analysts, the Apple decision it’s a good example for other companies to follow suit and start a trend at least for a portion of manufacturing.
There is a possibility that Apple is going to use Foxconn Technology Group, which already has two production facilities in the U.S. to build their computers in the US in a new facility.
MAC product includes foreign made components and only takes to assemble a certain part of the final product into the United States to be able to label it Made in the USA.
