Apple US Mac Production Including American-Built Components

News of Apple bringing production of some of its iMacs to the U.S. has been spreading like wildfire as the company previously relied heavily on Chinese labor to produce the majority of its products. Not only would this create more jobs in the U.S., which we’re currently desperately in need of, but it may also spark an increase in American-made components as Apple will be looking to invest in U.S. manufacturers to help build their products.

Not only will Apple benefit from this move, but other companies will also be able to start using U.S. produced components for their products such as Lenovo, who announced it will be moving some of its manufacturing to North Carolina. When you consider Foxconn will soon be using robots to manufacture products for its companies to help keep the cost of labor low, but may cost more in the long run when you consider how much it will cost to power the machines, moving some production to the U.S. doesn’t seem like an entirely bad idea and may even spark a boom in home-grown products.

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Foxconn Plans To Expand Business In The U.S.

Following Tim Cook’s announcement earlier today that Apple is bringing back some of its Mac production in the U.S. by way of a $100 million investment, Foxconn, interestingly  also confessed plans of expanding its business in the U.S. As you know, Foxconn is Apple’s top supplier. Although it is tempting to assume that both companies will be working together in the U.S., Apple and Foxconn did not allude the possibility. We do know that, according to Tim Cook, Apple will be “working with people.”

Louis Woo, a Foxconn spokesperson, confirmed to Bloomberg Businessweek saying, “We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there.” Speaking about the challenges of the plan, Woo says that supply chain is one of the big challenges for U.S. expansion. “In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China,” he adds.

If all goes well for Foxconn, it plans to bring Apple engineers to Asia for training before sending them to the production facilities in the U.S.

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Bloomberg: Foxconn plans US expansion to fill demand for American-made products

Apple CEO Tim Cook caused quite a stir when he announced that at least some Macs would soon be made in the US, and it looks like one of the world’s biggest device manufacturers is now set to follow suit. As Bloomberg reports, Foxconn is planning to expand its operations in the US to fulfill what it sees as a growing demand for more Made in the USA products. While not providing many details beyond that, Foxconn spokesperson Louis Woo said in an interview with Bloomberg that “supply chain is one of the big challenges for US expansion,” adding that “any manufacturing we take back to the US needs to leverage high-value engineering talent there in comparison to the low-cost labor of China.” Of course, while the timing of the news is a bit coincidental, there’s no indication yet that Foxconn will be working with Apple on its US manufacturing plans, nor is there any word on any other clients it’s lined up.

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Source: Bloomberg

The New iMac: Designed By Apple In California, Assembled In USA

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Your next Mac could be assembled in America. Apple is assembling at least some of the new, ultra-thin iMacs in the U.S. The backside stamp containing the serial code and FCC logo generally says “Designed by Apple in California. Assembled in China.” But several owners of the new model quickly discovered their machines were made in the good ol’ US of A.

Apple has long made its products in the U.S. Its Elk Grove, Calif., complex opened in 1992 and retrofitted from a distribution center into a manufacturing plant in 1995. During the iMac’s heyday, it employed more than 1,500 people and pumped out computers seven days a week. The plant made its last computer in 2004 when then SVP of Worldwide Operations, Tim Cook, consolidated Apple’s manufacturing in what would be a successful move to maximize efficiency and margins.

The Sacramento Business Journal noticed in September that Elk Grove’s workforce had grown 50 percent on the year. This could be the location of the iMac’s secret manufacturing base.

Apple has yet to comment on the findings. It’s unclear at this point where the new iMac is being assembled in the U.S. It could be Elk Grove. It could be a U.S.-sourced third-party manufacturing facility. At D10 in May of this year, CEO Tim Cook acknowledged that Apple’s strength was not in manufacturing. He also noted in his chat with Walt Mossberg that he hoped that someday Apple could assemble products in the U.S.

As noted by the stamp on the back of the iMac, the computer is not “made” within the U.S., but rather “assembled” there. Per the U.S. Federal Trade Commission, the latter denotes a product that contains foreign-made components where the principle assembly, in which a substantial transformation happens, takes place in the U.S.

There has been a sort of call to arms in the wake of the U.S.’s economic downturn. Once the heart of America’s economy, manufacturing jobs simply disappeared over the past generation. Apple wasn’t alone in outsourcing its manufacturing and assembly to third parties. Foxconn, Compal, and other OEM/ODMs saw significant growth over the last decade, as HP, Dell, and Apple (among many others), turned to these manufacturers to make their wares. But now, as the U.S. attempts to regain what was lost, having the little label “Made in the USA” (or assembled) is in vogue.

Not all the new iMacs are assembled in America. Our review tester is adorned with the normal “Assembled in China” message. It’s unclear at this point how to identify a Made-in-America unit from a Chinese model while the computers are still in the box. But there has to be a way; there has to be a way to show Apple that Americans prefer computers assembled by Americans.

Sharp $240m talks tipped with Dell, Intel and Qualcomm: IGZO the prize

Sharp has reportedly begun talks with Dell, Intel, and other US companies for a potential share in the display firm, in a move that may be designed to put pressure on existing Foxconn negotiations. The discussions – which are also believed to be ongoing with Qualcomm, according to the WSJ‘s sources – would see struggling Sharp offer up a stake in return for as much as $240m depending on the suitor, with the spoils of the deal being a guaranteed supply of the company’s IGZO displays.

According to the insiders, Sharp is hoping to squeeze up to $240m from Intel or Dell, though its ambitions for Qualcomm investment are more modest. The display firm has been mired in ongoing negotiations with Foxconn/Hon Hai Precision Industry Co. for several months, with the firms needing to reach a conclusion by March 2013 but uncertainty around Sharp’s value stalling the deal.

Unofficially, however, a Sharp executive speaking to the newspaper said that while the companies continue to talk, “the unpredictability of its earnings are hindering” the likelihood of a deal. Others familiar with the deal have said that Sharp is laying on hyperbole about IGZO’s promise as a key negotiating point, routinely describing it as “potentially game-changing technology.”

That game-changer comes down to how IGZO works, replacing the substrate material among other changes, and in doing so reducing power consumption and increasing pixel density. That makes for displays that can offer the same brightness as regular LCD but with lesser power demands, or alternatively use the same power as traditional panels but for a much brighter picture, useful for outdoor applications.

IGZO production, however, has struggled to meet Sharp’s goals, and so far the panels are only showing up in a limited way in tablets and phones for the Japanese market. However, Sharp claims it is ready to offer a 32-inch IGZO panel that runs at an impressive 3840 x 2160 resolution, and which could well find its way into future Apple products according to some industry speculation.

In fact, Apple involvement in Sharp’s ongoing business has been the source of display channel muttering for some time. One analyst has suggested that a $2bn blip on Apple’s most recent financial results sheet was in fact a helping hand to the Japanese firm, potentially bringing forward future panel orders onto the books so as to help shore up the supplier.

Sharp has declined to comment on whether it is in negotiations with companies outside of Foxconn, and neither Dell, Qualcomm, nor Intel would comment on the rumors. It’s possible, however, that the move to widen negotiations – or, indeed, the leaks that such a move is being considered – is a tactical one to increase pressure on Foxconn management.


Sharp $240m talks tipped with Dell, Intel and Qualcomm: IGZO the prize is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.


SlashGear Evening Wrap-Up: November 27, 2012

Welcome to Tuesday evening everyone! This afternoon we heard that Apple’s Richard Williamson has been ousted in an iOS Maps switch-up, while Nintendo confirmed the rumored Wii Mini – but it’s only coming to Canada and won’t have Internet capabilities. Microsoft has sold 40 million Windows 8 licenses since the OS launched last month, and even managed to sell 750,000 Xbox 360s during the week of Black Friday, despite the fact that the console is viewed as aging hardware by many.


Black Friday and Cyber Monday 2012 turned out to be the best ones ever for Amazon’s Kindle family of devices, and Evernote Clearly has added text-to-speech for its premium members, which is a pretty awesome new feature if you ask us. Gmail has added support for 10GB attachments so long as those attachments are stored in your Google Drive account, and Outlook.com was able to boast 25 million users today, with Microsoft telling us that an Android app is on the way.

We heard today that Foxconn might be manufacturing Microsoft’s rumored Surface phone, and Apple reassured everyone today that the new iMac is still on track to launch later this month (November 30 to be exact, which is right around the corner). Cyber Monday sales topped a whopping $2 billion this year, and we learned that Nintendo TVii will be launching in Japan on December 8, which leads us to believe that it won’t be long before the service is available in the US and Europe.

HP and Nomadix have settled their patent lawsuit, while Nintendo launched new nostalgia-fueled DLC for New Super Mario Bros. 2. Fans are petitioning Rockstar to release Grand Theft Auto V on PC, and indie hit Super Hexagon is now available on Steam. Microsoft might be opening its first retail store in Europe as early as next year, the NYPD is building a database of calls made with stolen phones, and Rdio has been updated on iOS and Android with an entirely new UI.

Finally tonight, we have a couple of reviews for you to check out. Vincent Nguyen delivered his review of the new Jawbone UP earlier today, while Chris Burns takes on Hamilton’s Great Adventure THD for some mobile gaming goodness. That does it for tonight’s Evening Wrap-Up, enjoy the rest of your night folks!


SlashGear Evening Wrap-Up: November 27, 2012 is written by Eric Abent & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.


Foxconn reportedly making Microsoft’s Surface phone

With Windows Phone 8 getting so much attention around the Internet, it’s only natural that rumors of a Microsoft-branded smartphone are beginning to pop up as well. We heard about a Microsoft smartphone earlier this month, but now the phone has crept its way back into headlines, with DigiTimes reporting that infamous manufacturer Foxconn will be making the new device. The phone will apparently be set to ship in mid-2013, so if it actually exists, it may not be much longer before we get official confirmation from Microsoft.


With Surface marking Microsoft’s first foray into the tablet space, it isn’t hard to imagine the company making the jump to smartphones too. Windows Phone 8 on a Surface-branded smartphone seems like something too appealing for Microsoft to resist, so we wouldn’t be all that surprised to learn this rumor is true. Specifically, Foxconn International Holding is said to be putting this phone together, but neither it nor its parent company, Foxconn Electronics, would comment on the rumor.

In an interesting twist, Foxconn International Holding is said to be manufacturing an Amazon phone as well. We heard rumors of an Amazon phone earlier this year before the company unveiled the Kindle Paperwhite and the Kindle Fire HD, but Amazon was quick to quash those whispers. Maybe Amazon was simply lying so it could reveal such a device at a later date?

The report from DigiTimes doesn’t mention anything about technical specifications, but it does say that both phones should be shipping in mid-2013. It also claims that initial shipments of both devices will be limited, but other than that, we’ve got nothing else to share. Looks like this is another one to toss on the ever-growing rumors pile until either Amazon or Microsoft share some official details. Stay tuned.


Foxconn reportedly making Microsoft’s Surface phone is written by Eric Abent & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.


Foxconn reportedly chosen to manufacture Microsoft’s Surface phone

It has been suggested many times after the announcement of the Microsoft Surface tablet that Microsoft could be interested in making a Surface phone of their own which would run on their Windows Phone platform. Given the build quality of the Surface tablet, we can only imagine that the alleged Surface phone would be just as impressive and while it remains to be seen whether Microsoft will make the phone a reality, Digitimes is reporting that Foxconn has been selected by Microsoft to help manufacture its Surface phone. According to their sources, Microsoft is set for a launch of the alleged handset mid-2013 and it is expected to run on Windows Phone 8. Naturally Foxconn declined to comment on the matter, but so far there are just too many reports of a Surface phone to ignore. Either way until we hear from Microsoft or see some evidence of such a device, we suggest you take this with a grain of salt for now.

[Image credit – Jonas Daehnert]

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Samsung Settles Labor Issues In China

The efforts of China Labor Watch, a New York-based non-government organization, are finally paying off. That’s because Samsung is hearing enough of the complaints and is now launching an initiative to address the unfair labor practices reported on its suppliers in China. The South Korean technology titan says that it has audited around 105 suppliers in China and found “several instances of inadequate practices at the facilities, including overtime hours in excess of local regulations, management of supplier companies holding copies of labor contracts, and the imposition of a system of fines for lateness or absences.”

However, Samsung added that during the audit in September, it found no “instance of child labor,” debunking previous reports. With regards to the unfair labor practices, Samsung is demanding suppliers to adopt a new hiring process and better measures that will eliminate working hours beyond legal limits by the end of 2014. Suppliers who will use child labor will be duly terminated, the company warns. In a statement published today, Samsung writes: “We are now designing, researching, and/or implementing corrective actions to address every violation that was identified. Corrective actions include new hiring policies and work hours and overtime practices, among other steps, to protect the health and welfare of employees.”

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Foxconn Robots To Begin Work Soon

Foxconn does not have a shining record when it comes to the kind of treatment that their workers get, despite being one of the contractors that Apple has employed to churn out numerous devices, mainly for the iPhone and iPad. Well, since the company has not shown a sterling track record for treating their works well, the CEO decided to replace the human workers with a droid army, dubbed “Foxbots” by some. These robot workers were said to take over a number of factory positions which are considered as dangerous, and Foxconn hopes that the Foxbots will also trim company expenditures in the long run.

Perhaps another reason for having Foxbots all over the factory is to avoid issues such as worker riots that have happened more than once in the past, in addition to the controversy surrounding underaged workers, low pay issues as well as worker suicides. So far, around 10,000 of these robots have been deployed in China’s Shanxi Province, and there are plans penciled in for another 20,000 of these robots to enter the Foxconn workforce in due time.

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