Data Storage Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Information for Data Storage Professionals
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Wednesday, April 23rd 
24/7/365 Network Uptime!
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Data Centers
Storage Solutions
Storage Networks
Data Storage Issues
Data Security
DST Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Enterprise Hardware

Some Macs To Be 'Made in the U.S.A.'

Some Macs To Be
December 6, 2012 5:03PM

Bookmark and Share
"Given the premium pricing of the Mac product lines, they probably offer high enough margins for Apple to pursue this course profitably," said analyst Charles King. "Then again, Macs represent such a financially minuscule part of Apple's overall business that whatever hit the company might risk would be well worth the 'attaboy' praise."

Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.

A future line of Macintosh computers built by Apple will have a feature not seen since the '90s: a "Made in the USA" label. CEO Tim Cook on Thursday announced the company would invest $100 million in a Mac plant in the United States in a move that could help boost the economic recovery -- and perhaps Apple's flagging stock price.

The move will in part be full circle for a computer whose forerunners were born in the California garage of Apple co-founder Steve Jobs and that has been produced in Asia since the early '90s.

Interesting Timing

Cook's announcement came a day after Apple shares took their biggest nosedive in four years, falling 6.4 percent, or $37.05, to close Wednesday at $538.79. That meant a loss of $34.9 billion in market capital. Some analysts were dumbfounded by the turn, but others saw it as a sign of recognition that competition in the smartphone and tablet markets -- now Apple's top revenue producers -- is starting to take a toll.

The U.S. manufacturing news changes the channel on that bad news and highlights the company's ability to invest capital, though the $100 million is a drop in the bucket of Apple's holdings.

NBC broke the news from Cook Thursday morning that an existing line of computer production for Macs will be moved from China to the U.S. The exec also told Bloomberg BusinessWeek "we'll be working with people, and we'll be investing our money," suggesting partners in the U.S. venture.

Apple has not revealed further information about which computers will be produced here. The company has faced considerable criticism over working conditions and wages at the Foxconn plants in China where iPads, iPods and iPhones are produced.

Despite the timing, the announcement seems part of a long-term goal and plan.

"Apple would not likely change manufacturing for PR purposes," said Michael Gartenberg, a technology analyst at Gartner Research. " I would imagine it's a goal of Apple to invest as much as they can in the U.S. while staying competitive and profitable. From Mr. Cook's comments it's clear they believe they are capable of doing so."

But another analyst, Charles King of Pund-IT, noted that public opinion, particularly after this year's economically divisive presidential race, has been increasingly anti-corporate.

"Since the 1980s, businesses and corporate leaders in the U.S. have accrued huge economic and political power but there are serious and growing questions about just how that has benefited the citizens and taxpayers who often directly subsidized that largess," King said.

Scoring Brownie Points

So by investing in American jobs and productivity, Cook appears to be thinking proactively to position Apple as a good corporate citizen as Congress during the second Obama administration mulls legislation that could impact profitability.

But King noted that Cook's statement leaves open the possibility that Apple may for the first time outsource some of its computer manufacturing processes, which could affect the price tag.

"Given the premium pricing of the Mac product lines, they probably offer high enough margins for Apple to pursue this course profitably," King said. "Then again, Macs represent such a financially minuscule part of Apple's overall business that whatever hit the company might risk would be well worth the 'attaboy' praise the company will earn from political leaders."

Tell Us What You Think
Comment:

Name:



 Enterprise Hardware
1. AT&T Expanding Its Gigabit Broadband
2. Vaio Fit Battery Danger Forces Recall
3. Drop in Global PC Shipments Slows
4. Google Glass Finds a Medical Niche
5. IBM Mainframes Celebrate 50 Years




 Most Popular Articles
1. Intel Bets on Cloudera for Big Data Analytics
2. SAP HANA Data Warehouse App Gets Faster Analytics
3. Fast Seagate 6 TB Drive Offered for Enterprise Data Centers
4. California DMV Investigates Possible Security Breach
5. Resetting All Passwords Now May Be Worst Heartbleed Fix


Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Verizon Report Exposes Cyberthreats
  Samsung Data Center Catches Fire
  Heartbleed Exploit Could Cost Millions
  Michaels: Nearly 3M Cards Breached
  Malware Targets Facebook Users

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Verizon Data Breach Report Exposes Top Threats
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
White House Updating Online Privacy Policy
A new Obama administration privacy policy explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, saying much is in the public domain.
 
Navigation
Data Storage Today
Home/Top News | Data Centers | Storage Solutions | Storage Networks | Data Storage Issues | Data Security | DST Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Data Storage Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.