Tim Cook announces plans to manufacture Mac computers in USA

  1. People don’t realize how little labor is involved in electronics. Here is one of the fastest growing companies in Canada: http://www.aeicm.com/ August Electronics Inc. in Alberta. It’s one of a number of contract electronics manufacturers that I’ve seen pop up in the US and Canada the last 3-5 years. It’s basically capital investment. Similar to injection molding, you basically need 1-2 people to feed a bunch of machines with components. Everything else is automated. Maybe a little more QC at the end.

  2. Mexico manufacturers a lot of computers, TVs, cell phones. I’m sure it is mostly assembly, but still. From my experience, most of those facilities are pretty light on manual labor too.

  3. Tim Cook’s expertise is logistics. I’m sure that this will save Apple money. There will be significant tax advantages in terms of avoiding tariffs and getting tax credits. I don’t see anything altruistic or patriotic. It’s a smart business move.