Earlier this morning, we discussed Apple Inc. (NASDAQ:AAPL) CEO Tim Cook’s comments about an Apple TV (see Tim Cook Just Dropped This Bombshell), in addition to his announcement that the company would begin to produce some iMacs in the United States, so it’s intriguing to see what one of the tech giant’s key suppliers is telling the media.
In an exclusive phone interview with Bloomberg today, Foxconn Technology Group, Apple’s top manufacturing partner, said that “[w]e are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there,” but a company spokesman would not get into the details. In addition to those comments, which are cryptic at best, the Foxconn spokesman also shared this tidbit:
“Supply chain is one of the big challenges for U.S. expansion […] In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China.”
While we don’t know exactly which “customers” Foxconn is referring to, it’s rather curious timing, as Apple Inc. (NASDAQ:AAPL)’s Tim Cook said that his company has been “working for years on doing more and more in the United States,” settling on the iMac in particular in 2013. According to AppleInsider, Foxconn’s interview also gives credibility to “a rumor [via DigiTimes] from last month that claimed the Taiwan-based manufacturing company was looking to establish new plants in America […] potential locations were Los Angeles, Calif., and Detroit, Mich.”
Now, to call the DigiTimes‘s track record spotty would be the nice way of saying it, but it’s encouraging to see similar comments coming from both sides of the aisle, so to speak. It remains to be seen if, and when, more Foxconn factories go up in the U.S. — and if they actually are intended for Apple Inc. (NASDAQ:AAPL) — but this is a situation that investors must be aware of. Let us know your particular thoughts in the comments section below.