This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple's iMac: Made in the USA (Update 1)

Updated from 9:26 a.m. EST to provide analyst comments in the seventh paragraph.

NEW YORK ( TheStreet) -- Apple (AAPL) has long received criticism for manufacturing products in China as the U.S. struggles for economic growth. It appears some of that's changing, though, with the new iMac apparently being made in the USA.

Gadget Web site iFixit's teardown of the 21.5-inch iMac which went on sale on Friday has revealed the words "Assembled in USA" inside the device.

The majority of Apple's products have been made overseas in the Far East through Foxconn Technology, Apple's Asian manufacturing partner. It's possible, however, that Apple's ramping up production of some of its products in the United States, something CEO Tim Cook said he would like to see more of. In a recent conference hosted by AllThingsD, Cook was asked by Walt Mossberg if Apple would ever envision having big manufacturing plants domestically, similar to what they have in China. Cook responded by saying, "I want there to be."

Parts of the iPhone and iPad are already made domestically, but assembling the product in the U.S. is a different story. According to the U.S. Federal Trade Commission, a product cannot use the "Assembled in the USA" claim unless:

"A product that includes foreign components may be called 'Assembled in USA' without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the 'assembly' claim to be valid, the product's last 'substantial transformation' also should have occurred in the U.S. That's why a 'screwdriver' assembly in the U.S. of foreign components into a final product at the end of the manufacturing process doesn't usually qualify for the 'Assembled in USA' claim."

Consumers react well to companies that produce their products locally; at least that's the perception. If this is indeed the case, perhaps the goodwill Apple builds by producing the computers domestically will be a boost to sales. We've already seen availability dates pushed back from 1 to 3 days to 7 to 10 days, as consumers clamor for the latest desktop from Cupertino. The new iMac boasts a stunning redesign and several new features, including new Intel (INTC) chips and a Fusion Drive.

Some on Wall Street have a favorable view towards the decision. Brian Sozzi, analyst at NBG Productions and Real Money contributor, believes Apple could benefit. He thinks it will allow "for better speed to market in a price competitive sector and much stronger monitoring of the production process," Sozzi noted in an email.

Apple announced last week the new iMac will be available by the end of November.

I've reached out to Apple for comment on this, and will update when and if I hear back.

Interested in more on Apple? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs