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

By Jane McEntegart
published

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.

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Jane McEntegart
70 Comments Comment from the forums
  • bavman
    Why? So they can charge an extra 50% on their crap for labor costs?
    Reply
  • Zingam_Duo
    The $9999 iPad USA
    Reply
  • blurr91
    But....Tim, that will erode into your 40% margin...
    Reply
  • SpadeM
    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.
    Reply
  • willard
    blurr91But....Tim, that will erode into your 40% margin...It's actually 51% on the new iPad. The iPad 2 was 57%.
    Reply
  • Plasmid
    Apple could easily make 50% of its stuff (manufacture) in the U.S and sell at current prices while maintaining a good profit.
    Reply
  • sliem
    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
    Reply
  • willard
    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.
    Reply
  • fudoka711
    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).
    Reply
  • drwho1
    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
    Reply