Is Apple Bringing Manufacturing Home?
Is Apple (NASDAQ:AAPL) going domestic and assembling some of its bestselling devices in the United States instead of at its manufacturing partner Foxconn’s many factories in China? Some labeling on Apple’s new iMac computers seems to suggest so, according to Fortune, which found “Assembled in USA” notations on some of the new machines.
Is Apple Really Producing Computers in the U.S?
While some of the units were definitely put together in the U.S., not all were, according to Fortune, which added that Apple had definitely not “transported its entire iMac manufacturing operations back to the States.”
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Still, while Apple has traditionally made built-to-order machines at home, the 21.5-inch iMacs are some of the first-known examples of a computer from the company being assembled in the U.S. According to Apple Insider, the U.S. Federal Trade Commission regulates “Made in USA” and “Assembled in USA” claims and says that the latter cannot be a simple screwdriver assembly where parts made overseas are added to a near-final product. That strict regulation would imply that Apple was, in fact, conducting a substantial amount of assembly work in the U.S.
Can a Move Like This Affect Company Stock?
As Fortune points out, had this been a widespread development, Apple’s public relations department would have found a more effective way to spread the word of what is considered a fairly popular political move. Chief executive Tim Cook had expressed an interest in encouraging American-made Apple products at a conference earlier this year, even as he acknowledged workforce limitations compared with China. Maybe Apple is facing constrained supply of the redesigned iMac that originated at its China manufacturers and the U.S. production is just to lend a helping hand, so to speak. In any case, the move appears to be too small and solitary to cause positive stock movement.
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