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I assume this is because Tim Cook is bowing to political pressure where Steve Jobs refused. Remember when Steve Jobs said, "Those jobs aren’t coming back" [1]?
by tpatke 14y ago
I assume this is because Tim Cook is bowing to political pressure where Steve Jobs refused. Remember when Steve Jobs said, "Those jobs aren’t coming back" [1]? The question is - why now?
Hacker News discussion [2].
[1] http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?pagewanted=all&_r=0 http://www.nytimes.com/2012/01/22/business/apple-america-and...
[2] http://news.ycombinator.com/item?id=3494389 http://news.ycombinator.com/item?id=3494389
- danilocampos 14y agoI wouldn't be so sure. Jobs was notorious for taking public, absolutist positions and later changing his mind. (cf < 10 inch tablets, Intel chips, etc)
- devcpp 14y agoThat's not "political pressure", is it?
- danilocampos 14y agoI don't think President Bush asked him to switch to Intel, no.
- jonny_eh 14y agoJobs changed his minds on tablet sizes? I thought he went to his death thinking they nailed it with the original iPad size.
- mdanger 14y agoI was able to find this with a little Googling (no idea on the truthfulness of the article), but I could swear there was another article listing the iPad Mini as one of the last products he worked on: http://www.slashgear.com/steve-jobs-secretly-very-receptive-to-ipad-mini-06241823/ http://www.slashgear.com/steve-jobs-secretly-very-receptive-...
- CrazedGeek 14y agoYou might be confusing the iPad Mini with the iPhone 5: http://www.channel4.com/news/apple-co-founder-steve-jobs-last-product-launched-today http://www.channel4.com/news/apple-co-founder-steve-jobs-las...
- ok_craig 14y agoEddy Cue: "I believe there will be a seven-inch market and we should do one." "I expressed this to Steve several times since Thanksgiving and he seemed very receptive the last time."
- abc_lisper 14y agoThat he wasn't able to, coz he passed away, but the point stands. Jobs is famous for things like that. I remember clearly when he said there is no way anyone could make a computer that is less than 1000 bucks(when the rumor is ripe with upcoming ipad) and 6 months later releases the ipad for 500.
- alsocasey 14y agoThat statement would have been truly outlandish considering non-Apple laptops' were going for 400-600$ fairly routinely by that point.
- hkmurakami 14y agoHis "counterargument" probably would have been something like, "you call those %$$#^&'s computers!?"
- abc_lisper 14y agosorry i forgot to mention that he said there is no way anyone can make a computer that is not shit for less than 1000 bucks.
- flyinRyan 14y agoThat's a horrible example. Jobs didn't consider the iPad a computer but an an appliance.
- verisimilitude 14y agoBut didn't Jobs always absolutely shoot down an idea, until he changed his mind by completely committing to it?
- drgath 14y ago> "We’ve been working on this for a long time, and we were getting closer to it." That to me implies it's been in the works for longer than Cook has been in charge.
- adpowers 14y agoThe jobs manufacturing iPhone/iPad/iPod aren't coming back, but I could see Apple bringing the manufacturing of computers (especially desktops) to the US. For one, the computers have a higher BOM and price, so an increase in manufacturing costs takes a smaller share of the total profit. Plus they only make 5 million computers a quarter, compared to 41 million iPhones+iPads. iDevices are released on an annual schedule, which means delays are extremely costly (especially if they are timed for the holidays). This requires a very tight supply chain. It isn't as big a deal if the iMac slips by a month. Finally, the market for iDevices is extremely competitive compared to desktops. Execution matters way more for iDevices and a lot more money is on the line. It is easy to experiment with iMacs because there is much less pressure in that market segment.
- qdog 14y agoIt's not clear to me iPhone/iPad/iPod won't come back at some point. The news that Foxconn has started replacing workers with machinery means the labor cost portion of manufacturing is going to go down, regardless of geographical location. Robots in China aren't going to be any cheaper than Robots in the US, I don't think. Of course, the number of people required will be a lot lower, so the number of jobs brought in likely won't be that large. I've heard the supply chain argument a lot, so it might take a while, but the original reason for outsourcing, ie: low labor costs, is eventually going to go away.
- imissmyjuno 14y agoall you sem to be saying is that "Apple can do it" though. Juat because they can doesn't mean they should. Given that they're a for-profit corporation, I'm betting on some kind of financial incentive.
- alaskamiller 14y agoSteve thought on 10 year timeframes. Tim thinks in 1 year timeframes.
- hnriot 14y agoCan we stop this hero worship please. We're all adults here and while Steve Jobs was clearly a great leader of Apple, we don't need the constant Steve-was-god rhetoric.
- alaskamiller 14y agoI was pointing out perspective might be why decisions are made. Perhaps you're internalizing and projecting too much.
- Karunamon 14y agoI agree; there was nothing "hero worship"ey about your post, and you're being downvoted by knee-jerk reacton.
- taligent 14y agoI would watch Steve's Stanford commencement speech if I were you. In it he talked about only being able to 'connecting the dots' in his life looking backwards not forwards. This idea that he planned his time at Apple is just revisionist delusion on your part. That said there is nothing wrong with Apple thinking more short term.
- alaskamiller 14y agoAnd when I was working at Apple the very first thing Steve did upon coming back was giving away everything old on campus then said going forward was the only way to make Apple better. To think a speech made to sell dreams to a group of idealistic and aspirational youths is relevant to what we're discussing right now is just plain inexperience on your part. And that said, indeed there is nothing wrong with Apple thinking more short term. It's probably exactly why Tim Cook was chosen as CEO.
- encoderer 14y agoThe times are right now. Manufacturing in the country seems to have bottomed out a few years ago. Since 2008 several big manufacturers have been bringing jobs back from overseas. The plain truth is that outsourcing was probably done too fast, by too many companies. There are a lot of reasons for the new in-sourcing: 1. Chinese wages climb every year. 2. American wages especially in unionized workforces have declined as unions allow for lower starting pay. 3. Oil has gotten more expensive -- ships use oil. 4. American natural gas has gotten much cheaper -- many factories use natural gas energy. 5. Companies have better QC and time to market when producing locally. Not all jobs will come back. Nor should they. But it's definitely happening.
- hkmurakami 14y agoThere are also IP theft issues, and (while this doesn't apply to Apple) the burden of having to set up join ventures in China in partnership with a local firm where the foreign company has less than 50% ownership of said joint venture. In such a "partnership" (if you can really call it that), there is a constant struggle between the Chinese and the non-Chinese owners of the venture where the Chinese counterpart is trying to absorb knowhow as fast as possible while the foreign firm tries to maintain their technological leadership over their partner so that they don't get marginalized. Perhaps the benefit of such a contentious relationship has been eroded enough from higher wages and other costs that firms have started to migrate their operations back home.
- IheartApplesDix 14y agoI'd also like to point out that 100 million is a pittance of an investment for such a dramatic move for such a large company. It's really a no-brainier at that price.
- wiremine 14y agoA few thoughts: * Odds are _those_ jobs _aren't_ coming back, these are probably some sort of _new_ type of job. Given Cook's operations background, I wouldn't be surprised if Apple is leveraging their cash/think different attitude to try improving the efficiency of US based work forces. It doesn't seem like Cook's style to give away a competitive advantages for the sake PR. Apple's NPS (Net Promoter Score) is already extremely high. However, if he can shave a few more dollars off assembly, that protects Apple's margins, and that feels like a very Apple-like move. * If Apple were to leverage new manufacturing methodologies, and they have been working on that for a few years, they _would_ spin it for maximum PR. That makes them looks good, and focuses the store on job creation, not supply chain improvements. I don't think it is coincidence Cook spoke to both NBC and Bloomberg in the same news cycle. * That said: if Cook is being altruistic... So what? Apple has tens of billions of dollars in the bank. If they wants to spend $100M on PR, I'm sure the people reaping the rewards won't care.
- tripzilch 14y ago> if Cook is being altruistic... So what? Apple has tens of billions of dollars in the bank. If they wants to spend $100M on PR, I'm sure the people reaping the rewards won't care. Stockholders will care. No way he's just being altruistic. Your other ideas are much more likely.
- morley 14y agoThis topic is covered in the Isaacson biography; Isaacson's recounting doesn't paint Jobs so black-and-white on the issue. the excerpt: Jobs went on to urge that a way be found to train more American engineers. Apple had 700,000 factory workers employed in China, he said, and that was because it needed 30,000 engineers on-site to support those workers. “You can’t find that many in America to hire,” he said. These factory engineers did not have to be PhDs or geniuses; they simply needed to have basic engineering skills for manufacturing. Tech schools, community colleges, or trade schools could train them. “If you could educate these engineers,” he said, “we could move more manufacturing plants here.” The argument made a strong impression on the president. Two or three times over the next month he told his aides, “We’ve got to find ways to train those 30,000 manufacturing engineers that Jobs told us about.” Isaacson, Walter (2011-10-24). Steve Jobs (p. 546). Simon & Schuster, Inc.. Kindle Edition.