Bloomberg News

Apple Adds Macs Assembled in Texas by Flextronics in U.S. Push

February 13, 2014

Apple Mac Pro

Employees polish the monitors of Apple Inc.'s Mac Pro desktop computers at the company's store in the Wangfujing area of Beijing. Photographer: Tomohiro Ohsumi/Bloomberg

Apple Inc. (AAPL:US) added Flextronics International Ltd. (FLEX:US) as an assembler of Mac computers last year as Chief Executive Officer Tim Cook pushes forward with plans to have more of the company’s devices made in the U.S.

Flextronics assembled Macs in Austin, Texas, last year, Apple said in its annual supplier report published yesterday. Foxconn Technology Group remains the largest manufacturer of Apple products, with seven assembly locations in China and Brazil, according to the list published on Apple’s website.

Cook said in a December 2012 interview that Apple would invest more than $100 million year to boost manufacturing in the U.S. Flextronics, with headquarters in California and Singapore, joins Quanta Computer Inc. (2382) as Asia-based companies supplying to Apple from some of 60 facilities in the U.S.

Taiwan-based Quanta already makes some Macs in California. In November, Apple announced it would pay $578 million to GT Advanced Technologies Inc. (GTAT:US) to supply equipment for an advanced glass factory to be opened in Mesa, Arizona.

The U.S. is the third-biggest hub in Apple’s supply chain, while China remains the largest with 349 locations providing parts or manufacturing to the Cupertino, California-based company. Japan’s 139, Taiwan’s 42 and South Korea’s 32 facilities make Asia the center of a global supply chain that includes Mexico, Brazil, France and Germany, according to the report.

Panasonic, Hon Hai

Flextronics manufactures components and electronics used in avionics, flight controls, medical equipment and wearable devices. Valerie Kurniawan, a Singapore-based spokeswoman for Flextronics, didn’t answer calls to her office and mobile phones.

Apple’s Supplier Responsibility Report, first released in 2007, outlines the company’s labor and environmental standards and tracks how well its suppliers meet those rules, without naming which companies violated its code of conduct.

The iPhone maker started naming its suppliers in 2012 and listing assembly locations last year as it seeks to boost transparency among the companies that provide raw materials, electronic components, packaging and final products.

Panasonic Corp., the Osaka, Japan-based electronics maker, has more facilities supplying Apple than any other company, providing components from 31 locations. Hon Hai Precision Industry Co. (2317), the largest unit of Taipei-based Foxconn, has 29 locations in China, Brazil and Vietnam.

Intel Corp., the world’s largest chipmaker, provided products from 14 places, including the U.S., Costa Rica, China, Vietnam, Israel and Ireland.

While the supply of parts spans the globe, assembly of its two biggest products remains limited to two manufacturers. Foxconn and Taipei-based Pegatron Corp. (4938) are the only companies making iPhones and iPads, using seven locations in China and Brazil.

To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net

To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net; Bruce Grant at bruceg@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • AAPL
    (Apple Inc)
    • $97.46 USD
    • 0.43
    • 0.44%
  • FLEX
    (Flextronics International Ltd)
    • $10.84 USD
    • -0.40
    • -3.65%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus