Sign in with
Sign up | Sign in

Apple CEO: I Want There to Be Apple Products Made in USA

Apple has faced a lot of criticism over the last couple of years because of its business with Foxconn, the company that manufactures the iPhone and the iPod. Apple CEO Tim Cook has said Apple cares about every worker in its supply chain, a response to allegations that workers manufacturing our iPhones and iPads were being treated badly, and earlier this year he paid a visit to one of Foxconn's facilities during a business trip to China. Last night, Tim Cook talked a little bit about why it's hard to reduce the number of overtime workers in China are doing.

"Some people want to work a lot," Cook said. "They want to move and work for a year or two, and then move back to their village and bring back as much money as they can." Apple's CEO went on to say that Apple is micromanaging the situation, tracking 700,000 workers in China, and that the company now has 95 percent compliance.

When asked about the possibility of Apple one day producing a product that was both designed and assembled in the United States of America, Cook said, "I want there to be," adding that components for the iPhone and iPad, including the glass for the displays, is made in the U.S. However, considering comments made earlier in the evening, it doesn't seem likely, at least not for now. When Kara Swisher asked why Apple didn't have its own operations in China, Cook said it was because he didn't think Apple could do a better job.

"We decided a decade ago there were things Apple could do best, and that there were other things that somebody else can do as well or better," Cook told Swisher. "Manufacturing was one of those." He's later quoted as saying, "I think that's still true."

Read more of the AllThingsD interview over on AllThingsDigital.

Follow @JaneMcEntegart on Twitter.           

Display 70 Comments.
This thread is closed for comments
Top Comments
  • 30 Hide
    blurr91 , May 30, 2012 5:23 PM
    But....Tim, that will erode into your 40% margin...
  • 25 Hide
    Zingam_Duo , May 30, 2012 5:20 PM
    The $9999 iPad USA
  • 24 Hide
    bavman , May 30, 2012 5:16 PM
    Why? So they can charge an extra 50% on their crap for labor costs?
Other Comments
  • 24 Hide
    bavman , May 30, 2012 5:16 PM
    Why? So they can charge an extra 50% on their crap for labor costs?
  • 25 Hide
    Zingam_Duo , May 30, 2012 5:20 PM
    The $9999 iPad USA
  • 30 Hide
    blurr91 , May 30, 2012 5:23 PM
    But....Tim, that will erode into your 40% margin...
  • 21 Hide
    SpadeM , May 30, 2012 5:25 PM
    bavmanWhy? So they can charge an extra 50% on their crap for labor costs?

    Not really, it just means a lower profit margin at the same price .. and lower profits isn't Apple policy. I guess in the end, with all those billions of dollars the point is to take the money to your grave and don't give anything back to the community. Worked for Steve, will work for Tim aswell.
  • 23 Hide
    willard , May 30, 2012 5:26 PM
    blurr91But....Tim, that will erode into your 40% margin...

    It's actually 51% on the new iPad. The iPad 2 was 57%.
  • 11 Hide
    Plasmid , May 30, 2012 5:27 PM
    Apple could easily make 50% of its stuff (manufacture) in the U.S and sell at current prices while maintaining a good profit.
  • -5 Hide
    sliem , May 30, 2012 5:28 PM
    Sure, iPhone 6 for $12,999 after $4,999 mail in rebate. Accessories add $299, manual add $99, extended warranty required add $499 per month
  • 18 Hide
    willard , May 30, 2012 5:28 PM
    SpadeMNot really, it just means a lower profit margin at the same price .. and lower profits isn't Apple policy. I guess in the end, with all those billions of dollars the point is to take the money to your grave and don't give anything back to the community. Worked for Steve, will work for Tim aswell.

    Tim is actually showing signs that he's not the money grubbing bastard Steve was. Donated $100M of Apple's money to charity earlier this year, and is actually investing Apple's money to help give Foxconn's worker's better working conditions, unlike Steve who just spouted the party line about "caring" and pretending to be auditing the factories regularly.
  • 0 Hide
    fudoka711 , May 30, 2012 5:29 PM
    SpadeMNot really, it just means a lower profit margin at the same price .. and lower profits isn't Apple policy. I guess in the end, with all those billions of dollars the point is to take the money to your grave and don't give anything back to the community. Worked for Steve, will work for Tim aswell.


    For most companies, they would take the profit margin hit...but we're talking about Apple here, the company that already takes ~50% profit margins. They're gonna want to keep at least the same net profits. It will look like they're taking a hit in profits cuz their percent profit margin will be lower, but the actual dollar amount would be the same. This is what I think Apple would do if they do decide to build in the US (which is a good thing, we could use some more jobs).
  • 5 Hide
    drwho1 , May 30, 2012 5:30 PM
    We already have Apple products made in the USA.
    They can easily be found in your local Super Market.

    This reminds me to get an APPLE PIE MADE in the USA.... God forbid is made in China.
    /Sarcasm
  • 10 Hide
    internetlad , May 30, 2012 5:38 PM
    The glass for the Ipad is U.S. Made? Apple is really going above and beyond for it's country here.

    ALTERNATE JOKE

    no wonder the ipad glass shatters so easily.
  • 6 Hide
    mayne92 , May 30, 2012 5:43 PM
    I always chuckled when I read the text that the iPhone for example was "designed" in the US (California)...is that the next best thing to made in the US??? loooool. Does this still have a nationalistic effect on the Apple-sheeple?!?
  • 3 Hide
    punahou1 , May 30, 2012 5:43 PM
    If Apple truly cares about every worker in its supply chain why would they allow 12 year olds to build iphones in the first place? Don't be fooled - like every company their executives are driven and bonused by maintaining profit margins.
  • 7 Hide
    coupe , May 30, 2012 5:45 PM
    Apple is a trendsetter. If this is one trend Apple can set, I may actually not dislike them as much. >;)
  • 1 Hide
    kcorp2003 , May 30, 2012 5:46 PM
    parts manufactured overseas and assembled in america. doing this avoid some taxes like what Toyota been doing for some model cars.
  • 1 Hide
    blurr91 , May 30, 2012 5:47 PM
    willardIt's actually 51% on the new iPad. The iPad 2 was 57%.


    I stand corrected.
  • 7 Hide
    hoof_hearted , May 30, 2012 5:52 PM
    Cook said it was because he didn't think Apple could do a better job.


    meaning they couldn't exploit workers and get away with it. With Foxconn at least there is someone else to blame.
  • 2 Hide
    chaoski , May 30, 2012 5:55 PM
    Crapple products are already way too overpriced. But if people are willing to pay MORE for "American made"....go nuts apple.

    Just don't expect any business from me....EVER
  • 1 Hide
    Anonymous , May 30, 2012 5:56 PM
    "Last night, Tim Cook talked a little bit about why it's hard to reduce the number of overtime workers in China are doing."

    That doesn't make any sense.

    "When asked about the possibility of Apple one day producing a product that was both designed and assembled in the United States of America"

    Assembled and manufactured are completely different things.
  • -1 Hide
    boiler1990 , May 30, 2012 6:19 PM
    It's been noted that higher labor costs ultimately don't affect the price of a device much (see Steve Jobs' meeting with Obama over manufacturing jobs). This would be a great move if we could motivate people who ultimately don't want to work anymore or those who believe certain work is "below" them. Apple has the money to pay for and maintain manufacturing facilities - that is certain.
Display more comments