The new Mac Pro! Made in America?!

Posted on 27/08/2013 by Chadanuch Pomankul

Mac Pro

Apple’s new power machine, the Mac Pro, is quite an amazing piece of design and engineering. But what’s most striking is that Apple, after having outsourced manufacturing for almost 20 years to Asia, is going back home.

The Mac Pro will be assembled in the U.S.

“Hold on”, you might think. Didn’t we mention in our post last week that electronics should be manufactured in Asia. Because the entire supply chain is here.

Yes, that’s correct. But still it makes sense for Apple to manufacture in the United States.

Why?

It is true that the electronics that go into the Mac Pro are being manufactured here in Asia. But Apple already has a massive supply chain in place.  So shipping electronics over to an assembly plant in the U.S. isn’t a big task for Apple.

On the contrary, given how small the electronics parts are compared to the overall product, they might even save on shipment.

But apart from costs, there’s a more important point: The customers.

We don’t think Apple will move the production of iPhones and iPads to the United States for two reasons:

First of all, the iPhone and iPad are true globalized products. Millions of them are sold all over the world, and millions of them here in China.

The Mac Pro on the other hand is a niche product for professionals. And the majority of Mac users, especially Mac Pro, are in the U.S. and Europe Hence, manufacturing it in the U.S., closer to market, can make sense.

Second, assembling delicate devices such as smart phones or tablet computers requires a certain skill set that is available in China but not (anymore) in Western countries. Assembling a computer on the other hand is easier as the parts are bigger.

But the main reason for moving production away from China to the United States is marketing.

Apple and other companies have been under immense pressure about the working conditions at their suppliers in Asia, most notably Foxconn.

By moving parts of the production back to the U.S. they can polish their image as a good corporate citizen. The increased costs can be easily added to the price, as products like the Mac Pro are bought by professionals and company who are not as price sensitive as iPhone or iPad consumers.

So what’s better for you? Manufacturing in Asia or your home country?

Speak to our Product Consultants to find out more.

 

 

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