Is Apple Seeking a Brand Boost with “Made in the USA”?

Apple (NASDAQ:AAPL) CEO Tim Cook recently announced the company, which relies on iPhone and iPad sales for 70 percent of its profit, will invest $100 million in the U.S. based manufacturing of Macs.

The announcement reinforces a growing trend that Apple, which plans on doubling its support system in Austin, Texas to 7,100 workers over the next ten years, is investing once again in the U.S. economy. While the manufacturing site will only provide 200 jobs, according to Bloomberg, it should produce a million unit-output.

CHEAT SHEET Analysis: Is Domestic-Building of Macs A Catalyst for Apple’s Stock?

One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. In this case, Apple’s domestic investment isn’t a catalyst that will spark anytime soon, but it could mark the beginning of Apple’s transformation into a company that provides jobs for Americans.

A PR Stunt or Legitimate Business Venture?

“There is some PR aspect to it and there is also a lot of data out there that show it can make good business sense from a manufacturing perspective to bring that back to the U.S.,” said Michael Hasler, associate academic director for the Supply Chain Management Center of Excellence at the University of Texas, in an interview with Bloomberg.

Everyone knows that Apple has been utilizing cheap labor in China to help manufacture its iPhone and iPad, to the chagrin of the U.S. working class. For years, cheap labor has helped Apple turn a nice profit on their smartphones and tablets. While investing just $100 million in the domestic production of Macs seems like a pittance, it could signal that Apple is not only interested in improving its laptop competitiveness, but also changing its reputation from a company that exploits cheap labor to one that provides jobs for its target consumers.

Our 20-page proprietary analysis of Apple’s stock is ready. Click here and to get your Cheat Sheet report now.

More Articles About:   ,