Mac to come back home

Apple has broken the ice on a possible solution to the much touted criticism of manufacturing jobs moving from the US to China. In an interview with NBC News, the new Chief Executive of the Company, Tim Cook, said the Company will be moving manufacturing of some Mac computers to the US.
In another interview with Bloomberg Businessweek, he said the Company will be investing over $100 million towards greater manufacturing in the US. The shift would start next year.
While some components of the iPad and iPhone are made in the US, Apple had invested billions into its supply chain in China. Besides the criticism about the outsourcing of manufacturing jobs overseas, Apple has also received flak for poor working conditions prevalent throughout its supply chain.
This move marks a gradual realisation of the problem of manufacturing jobs shifting out of the US. The national unemployment rate of the country has stayed above 6 percent since mid-2008 till today (see graph). If companies such as Apple make efforts to move production back into the US, some pressure may be seen off the high unemployment rate.
"We want to be as innovative with supply responsibility as we are with our products. The more its in the public space, the more other companies will decide to do something similar," Cook was quoted by the Financial Times.
Most believe that the real reason for outsourcing the manufacturing of products in low-wage countries is to save costs. Cook, however, clarifies this notion, claiming that the lack of skills related to consumer electronics at home is a greater motivation for shifting production overseas rather than costs.
The Herald mentioned Cooks statement regarding this: "He (said) that the consumer electronics world has never really had a big production presence in the US. As a result, it is really more about starting production in the US than bringing it back."
The announcement comes right after Apples shares dipped to the biggest loss in four years last Wednesday. Thereafter, share prices bounced back after Cooks statement, indicating that the news has been well-received by investors.
In a world that has seen extensive outsourcing during the past several years, such moves could mark the beginning of a new era in industrial production.