Apple's Production Move Back to the U.S.: Just Politics or a Real Shift?

In the following video, Motley Fool analyst Lyons George talks about the reasons behind Apple's (NASDAQ: AAPL  )  plans to manufacture some of its Mac computers on U.S. soil, beginning with a $100-million investment that will start in 2013.

By looking at the amount of the investment, we can conclude that it's only a toe-in-the-water move by Apple as opposed to a major change in its complex global supply chain, which is heavily concentrated in China. 

Another reason for this announcement may be Apple's efforts to shift attention off their famously high margins from partner companies, like Foxconn (PINK:FXCNY), toward an "at home production" concept.

There is also evidence that such a decision may be more than just a political move by Apple; labor costs in China are on the rise, and last year's tsunami forced companies to reconsider their decisions to produce goods far from their markets. But only time will tell if Apple will decide to bring more production back to the U.S. 

In this video, Lyons George discusses the reasons behind Apple's decision to invest $100 million in the manufacturing of their products in the U.S. There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2145274, ~/Articles/ArticleHandler.aspx, 4/18/2014 2:57:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement