Apple bringing manufacturing jobs to U.S.

(Associated Press)

(Associated Press)

Ask almost anyone where he or she thinks “the engine” of Apple’s iPhone and iPad is produced and the answer is likely to be some far-flung Asian country – like China.

Not so, says Chief Executive Officer Tim Cook, now in his second year as head of the smartphone and tablet innovator after taking over following the October 2011 death of co-founder Steve Jobs.

“It’s not known well that the engine for the iPhone and iPad is made in the U.S., and many of these are also exported—the engine, the processor,” Cook reveals in a wide-ranging Q&A with Bloomberg News.

Not only does Apple produce its processors in Texas, but the glass for the IPhone and IPad is made in Kentucky. The final product, however, is assembled in China, as the back case of the iPhone indicates.

An even bigger revelation is that Apple plans to bring some of its overseas manufacturing jobs to the U.S. next year, Cook said.

“[Next] year we are going to bring some production to the U.S. on the Mac. We’ve been working on this for a long time, and we were getting closer to it,” Cook said. Without providing any specifics, such as where the manufacturing will take place, Cook promised “it will happen in 2013. We’re really proud of it. We could have quickly maybe done just assembly, but it’s broader because we wanted to do something more substantial.”

Cook said it will be an investment of more than $100 million. “This doesn’t mean that Apple will do it ourselves, but we’ll be working with people, and we’ll be investing our money,” he told Bloomberg.

Of Apple’s 598,500 U.S. jobs, 307,250 are in engineering and manufacturing. Cook said Apple has “a responsibility to create jobs.”

Do you think other companies will follow Apple’s lead and start bringing more of their jobs back home?

11 comments Add your comment

Fred ™

December 6th, 2012
3:19 pm

Wow, with over a billion dollars a month profit off of Chinese slave labor for who knows how many years they are going to add 1 or 2 in the US? Notice they don’t say how many, just “some jobs.”

Gwinnett Bread Winner

December 6th, 2012
3:55 pm

This is great news for people with various Computer Science, IT, and Engineering degrees. I’m hoping these jobs are near Metro Atlanta or another region that desperately needs these jobs.

stupid

December 6th, 2012
3:59 pm

I hate to break the news to you. Apple is only planning to build 1 computer here in the United States. Let me spell it out, ONE computer here in the UNITED STATES. I know, because I was on the conference call. :D

Exiting China---Come Home Apple

December 6th, 2012
4:47 pm

If Apple brought just ONE of its computer manufacturing jobs home that is a huge step in the right direction. That ONE industry could produce hundreds of jobs for people in the US. Let’s not be negative. Too many people here are out of work.

abbysenia

December 6th, 2012
4:59 pm

At stupid… When you say one computer… do you mean one single computer or one TYPE of computer? I hope you are joking. I think companies are seeing that the president means business in rewarding U.S. growth and not providing loop holes for outsourcing…also Americans are become more conscientious consumers…so hopefully we are seeing a trend…along with the chinese and asian demanding more money…and creating parity with our workers…

All I'm Saying Is....

December 6th, 2012
5:03 pm

Great news and bravo to Apple!

I do have to quibble about one thing: “Cook said Apple has “a responsibility to create jobs.” No you do not, Mr. Cook. Apple has a responsibility to deliver value to its shareholders which is typically accomplished by engaging in profitable activities. If as a consequence of delivering value to shareholders by engaging in profitable activities, Apple is also able to justifiably create jobs (especially in the U.S.), then all the better and truly a win-win-win. But let’s be clear: delivering shareholder value is the dog and any job creation is merely tail-wagging.

Shameahia

December 6th, 2012
6:02 pm

Right now Apple can pretty much charge whatever they want for their toys so bringing some manufacturing back to the U.S., with our high wage labor, is doable.

But as soon as something happens to make them start paying attention to their bottom line – a new competitor, sales fall off, whatever – it’ll be ‘China here we come’ once again.

Fred

December 6th, 2012
7:03 pm

@All I’m Saying Is…. – And that is the exact mindset that has gotten us to where we are now. Doing the right thing is almost always better and more profitable in the long run. Better US jobs will certainly help the economy much more by creating more economic activity here. Managing to 30-60-90 day numbers means ignoring all outside affects of your actions to the sole focus of “share holder value,” much of which doesn’t really go back to the shareholder in the end. By bring that manufacturing home to the US you create jobs so that more people can make money to spend on your products. Keep driving the last cent out of costs and you may soon find that you have created an environment where no one can afford to buy your product.

BRW

December 6th, 2012
7:56 pm

With “All I’m Saying Is….” ’s attitude and mindset, shareholders rule, right?
The truth is, those so called shareholders, for the most part, are the real “takers” and “moochers” in this country.
They produce nothing except cut-throat business practices and a profit-at-any-cost mentality.
Allowing lazy folks to squeeze every last penny out of something they have only money invested in is not what the market was set up for.

JWH

December 7th, 2012
3:15 am

@Fred – Lets not beat up on “All I’m Saying Is”. He’s actually quite honest in his statement. The current LAW requires that publicly traded companies consistently go after profit vs commitment to the community in which they serve. Lets get the law changed to provide for both of these goals and then we’ll be on the right track. Make Money Make Jobs Make a Better USA!!!!

stupid

December 7th, 2012
9:12 am

ONLY 1 Computer… as in 1. It is all publicity.