“We can’t go on like this. So, in the spirit of not going on like this, Apple’s CEO Tim Cook has announced a tiny $100-million (U.S.) plan to produce a line of Macs in the United States rather than in China,” Heather Mallick writes for The Toronto Star. “Imagine if the factories opened again. Springsteen would have to write all new songs.”
“Wall Street’s instant response was to drop the stock several percentage points. Apple is the biggest company in U.S. history. But despite its might and inventiveness, the market judged it solely on its merits as a behemoth built mainly on cheap Chinese labour,” Mallick writes. “This is why they call it capitalism. Wall Street’s response was a supremely perfect example of how its unadulterated form can work against the interests of its greatest cheerleaders, in this case the U.S.”
Mallick writes, “The markets are also worried about Cook’s clues that Apple will start making TVs… Oh Tim, ‘we liked you better as a recluse,’ wrote Kevin Roose of New York magazine. Capitalism feels that Apple is not well-placed to make TVs, even though it is patently clear that everything on your laptop is headed to a screen near you even now. The reaction is puzzling. Modern capitalism should be drooling at the thought of all the tech gear that will have to be tossed out for the next big thing. We’re on the eve of destruction. Terrible for the planet and the individual but wonderful for the tech industry.”
“Perhaps the market is trying to dissuade Apple from making its TVs in North America. The market doesn’t want locals with jobs. Apple wants to make friends with workers again. It wants friends with benefits,” Mallick writes. “We will watch Apple battle Wall Street. Who will win? Wall Street. Because of people like us.”
Read more in the full article here.
MacDailyNews Take: Neither of the two reasons the writer cites are reasons why AAPL has endured an end-of-the-year selloff.
A bit of advice for those attempting to use Apple in order to push political agendas of any stripe: Make sure you have the intellect and the writing ability to pull it off.
For a possible actual reason why Apple’s stock price has declined these past few weeks, please see: The mystery of Apple’s crashing stock price.
[Thanks to MacDailyNews Reader “Ian K.” for the heads up.]
Apple sells 1 million desktop Macs a quarter. Let’s say 10% of them are comprised of Mac minis and Mac Pros. That works out to 100,000 units a quarter or 30,000 units a month (rounded down).
Let’s say that Mac Pros comprise 1/3 of those ‘headless desktop’ sales which amounts to 10,000 a month or 120,000 units a year. Let’s say that North America makes up 50% of that which equals 60,000 units.
At a selling price of $2,500, this translates to $150 million a year. At a gross margin of 30%, Apple makes $45 million a year. So in just over 2 years Apple should recoup its $100 million investment in the assembly plant.
Not a bad ROI.
Not to mention the huge amounts it gains from PR.
A lot of people in U.S want to support American companies that bring jobs back.
Maybe the margin will be lower when manufactured in the US
“A bit of advice for those attempting to use Apple in order to push political agendas of any stripe: Make sure you have the intellect and the writing ability to pull it off”
How was this written with a straight face?
No kidding!
So, where are your links to the MDN-penned articles that use Apple in order to push political agendas of any stripe?
Surely you wouldn’t cast vague aspersions without any proof, right?
Can’t wait to see your links!
I hardly think AAPL selloffs are related to manufacturing plans in the US.
Yawn. Wall Street hucksters are slime.
What else is new? They like that there cheap labor. Wouldn’t want Dell and WalMart have to emulate the American labor premium. Wouldn’t be “capitalism” aka casino whoring.
Morons. Anyone who follows stocks at all, and Apple in particular, knows that the recent selloff is SO end-of-year specific, and very little to do with a company that is firing on *almost* all cylinders.
Buy while you can profit friends. This stock will be $700 to $800 by end of 2013.
I think Analyst, politicians, and Wall street forget about the most important thing about apple….
Having more than 100 BILLIONS ON CASH, APPLE DOESN’T CARE WHAT THOSE MORONS THINK???
+1
Awesome!
Exactly what is going on here:
The ‘Spirit of the Age’ BIZNIZZ BOZO companies, those that have been raping the USA for decades, the inventors of the Iraq War, the inventors of our ongoing worldwide economic depression, the receivers of US corporate welfare, AKA our Corporate Oligarchy, ARE PISSED OFF that Apple has not only kicked all of their asses fiscally and morally, but that Apple is ACTIVELY reversing their self-destructive evil by overturning their abandonment of US labor.
I’m going to LOVE THIS. 😀
Apple (as Conan)
USA (as Mongolian War Chief)
Established media whore (as Dim Mongolian Warrior)
Wall Street (Mongolian Enemy)
USA: Tell me! what is best in life?
Established media whore: The wind of outsourcing at your back, and high dividends on your arm.
USA: Wrong!
USA: Apple! what is best in life?
Apple: To use excellence to drive your competition before you in chains of self-made mediocrity and disproved FUD, and to hear the lamentation of recently made homeless Wall Street oligarchs and the tar and feathered political whores!
We’ll collaborate on the movie script. Love it!
If WS reacted at all to the story, it would be an expression of worry that perhaps apple management is managing to fashion rather than business. Is the plan to build in the US a matter of good business or good press. If good press then it simply, further supports the idea that apple does not consider computers important enough to take seriously.
Is this the same Apple sell off that started before Apple made any announcements about manufacturing computers in the USA ?
Wall Street has worked out what the shysters in the City of London have been doing for the past 30 years. If you destroy as many of the other industries in your own country whilst making yourself massive profits, you eventually reach the point where the finance industry can totally dictate what the country should do on every matter.
Over here in the UK we are using the backlash against the bankers from their causing a global meltdown as an opportunity to rebalance our economy and build up manufacturing and design again. And yet all you hear is wailing from Canary Wharf about how they’ll up sticks and go elsewhere if they’re not listened to.
This protection racket has to stop. I’m glad Apple are bringing manufacturing back to the USA. I hope others follow their lead.