This Day On The Street
Continue to site
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

Tim Cook: Macs Are Coming Home (Update 1)

Updated from 9:52 a.m. EST to provide analyst comments regarding manufacturing in the sixth paragraph.

NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) is certainly known for its innovation, and CEO Tim Cook is taking that innovation one step further -- he's bringing manufacturing back to the United States.

In an interview with NBC's Brian Williams, Cook announced that one of Apple's Mac computers will be manufactured exclusively in the U.S.

In another interview with Businessweek, Cook talked about Apple's manufacturing prowess in the United States, noting that parts of the iPhone and iPad are made in the U.S., and the glass is made in Kentucky, via Corning (GLW).

Cook noted, however, that he wants to do more and it will happen next year.

"And next year we are going to bring some production to the U.S. on the Mac," Cook was quoted as saying. "We've been working on this for a long time, and we were getting closer to it. It will happen in 2013. We're really proud of it. We could have quickly maybe done just assembly, but it's broader because we wanted to do something more substantial. So we'll literally invest over $100 million. This doesn't mean that Apple will do it ourselves, but we'll be working with people, and we'll be investing our money."

Raymond James analyst Tavis McCourt noted this could be a financial-related move for Apple, given increased costs in emerging markets. Cook noted Apple will be working with a third-party manufacturer and McCourt suspected it may help cut down on shipping costs. "Shipping costs on Macs are likely much higher than on iPhone, iPad, iPod, or MacBooks due to their higher weight and volume," McCourt wrote in a research report.

The news comes just a few days after some of the new iMacs, which Apple unveiled in October, were found to be assembled in the U.S.

For Cook to bring some manufacturing back to the United States is a sign of good public relations, and perhaps a turn in the global economy. Most electronics are manufactured abroad, with most being manufactured in the Far East. Public perception is that consumers react better to products made locally than they do if they are made abroad, ceteris paribus. Perhaps the goodwill Apple builds by producing the computers domestically will be a boost to sales. Availability dates have been pushed back since Apple announced the new iMacs would be available for purchase by the end of November.

The full interview with NBC's Williams airs tonight at 10 p.m. EST.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs