Apple to Officially Build Computers in the U.S.
Apple (NASDAQ: AAPL) CEO Tim Cook said that in 2013, the company will manufacture new computers in the United States.
"Next year we're going to bring some production to the U.S.," Cook told Bloomberg Businessweek. "This doesn't mean that Apple will do it ourselves, but we'll be working with people and we'll be investing our money."
Cook, who said that Apple will spend more than $100 million on the venture, did not reveal which Macs would be manufactured domestically.
Similar to the reveal of a new iDevice, Cook's announcement was preceded by rumors of American production. Foxconn, Apple's chief manufacturer, currently builds iPhones, iPads and other gadgets in China. In an effort to expand its global reach, the company has reportedly explored the possibility of building products in America.
Earlier this week, consumers received a bit of a surprise when they purchased the newly revised iMac and discovered that some of them were assembled in America. The Cupertino, California-based tech giant has yet to speak about the number of iMacs that are being assembled in America, nor has the company said where exactly the assembly is taking place.
It seems likely that Apple will continue down its current path and send iMac manufacturing back home. Regardless, there is a good chance that the product -- whatever it may be -- has yet to be revealed.
Apple's annual and bi-annual upgrade procedure allows the company to refresh its products frequently. This strategy is important for two reasons. First, it enables Apple to stay competitive. Second, it encourages consumers to buy new products more often than they would if the upgrades were several years apart.
Thus, while the company may be in the planning stages of producing a new product in America, that computer is very likely to be the next iMac or MacBook -- not the existing models that are currently available to buy.
Apple is expected to add its popular Retina Display technology to the next MacBook Air lineup. The company is also expected to add Retina Displays to the iMac, but not until the price is reduced. Large Retina Displays are currently more expensive to produce than a 4K television, which can cost as much as $25,000.
Whatever the case, Cook's announcement came at a difficult time for Apple. The company plunged for a variety of reasons Wednesday, but the most prominent reason turned out to be Nokia's (NYSE: NOK) deal with China Mobile (NYSE: CHL). After failing to secure an exclusive distribution deal with the world's largest mobile operator, many believe that Apple will not be able to lead the Chinese market.
Apple has lost more than 20 percent of its value over the last three months, but is still up more than 31 percent year-to-date. Five days ago, Apple was up more than 43 percent year-to-date, but those gains are being diminished by the firm's ongoing losses.
Paul Schatz, President and Chief Investment Officer of Heritage Capital, thinks that this is only the beginning. "…Just because it's a great company doesn't mean that it won't go down in price," he told Benzinga. "If $700 was the peak, it maybe gives back half to two-thirds of the rally it made from $90 to $700. That would put it between $300 and $400."
Follow me @LouisBedigianBZ
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.