Apple Inc. (NASDAQ:AAPL) is said to be planning to build its new Mac Pro computers in the U.S. through Singapore manufacturer Flextronics International Ltd. (NASDAQ:FLEX). The news comes from two Chinese sites: Economic Times and Macotakara, and it was reported by Apple Insider’s Neil Hughes.
Apple’s Reported Mac Pro Production Plans
The information is said to have come from KGI Securities analyst Ming-Chi Kuo, who has had a good track record in the past in terms of being able to predict Apple Inc. (NASDAQ:AAPL)’s plans. Flextronics International Ltd. (NASDAQ:FLEX) already has several facilities throughout the U.S., including in Kentucky, Georgia, Tennessee, Texas, North and South Carolina, and California. The report doesn’t indicate which of the many Flextronics facilities in the U.S. will be building the new Mac Pro computers.
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Apple’s Switch Is A Small Negative For Foxconn
If Apple Inc. (NASDAQ:AAPL) does make the switch to Flextronics International Ltd. (NASDAQ:FLEX) for the manufacturing of its Mac Pro, then it means that Chinese manufacturer Foxconn won’t be manufacturing them any longer. However, as the PC market is shrinking rapidly, Apple Inc. (NASDAQ:AAPL)’s market for the desktop Mac Pro computers is small. As a result, the decision likely won’t make a huge impact on Foxconn.
Apple will likely continue to manufacture its Macbook Air laptops overseas because much of the supply chain is still located overseas. It would not make economic sense to move production of the laptops to the U.S. and keep the rest of the supply chain overseas.
The Impact Of Apple’s Move
Apple Inc. (NASDAQ:AAPL) announced plans late last year to move the manufacturing of its Mac computers into the U.S. President Obama commended the company and other U.S. companies which were creating jobs in the U.S. Apple said it would invest $100 million in the move. It also stopped offering the Mac Pro in Europe in March because the old version of the computer doesn’t meet the new European regulatory standards.
Apple Inc. (NASDAQ:AAPL) has been keeping track of the jobs it has added to the U.S. economy. Earlier this year it was estimated that the company has either directly or indirectly created almost 600,000 jobs in the U.S. The company is also having a significant impact on its hometown of Cupertino, Calif., where it is preparing to build a massive new campus.