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Apple repatriates iMac production: start of a trend?

According to a study by HSBC Securities, repatriation involves a relatively small investment of only $100 million, and is not related to large corporate strategies but probably to the desire to win goodwill from the federal government and the public.

Apple repatriates iMac production: start of a trend?

The news that Apple has decided to bring production of its iMac desktops back to America next year has caused a stir. There were very few examples of such repatriations, although American companies are shifting Made in China production or supplies to other countries with low labor costs, and in particular to the Mexico: the sharp increase in Chinese wages, combined with Mexico's advantage in terms of transport costs, is pushing towards this productive repositioning.

But the case of Apple is potentially more important, because it could mark the beginning of a trend, especially as the shift concerns the United States itself – a country with certainly not low labor costs.

However, a study by HSBC Securities (Taiwan) downplays the incident. The repatriation concerns a relatively small investment of only 100 million dollars, and is not linked to large business strategies but probably to the desire to gain goodwill from the federal government and public opinion, still shaken by the news relating to the disadvantaged working conditions at Chinese Foxconn (one of Apple's main suppliers). The new factory, according to the report, will likely be used for the highly automated assembly of iMacs based on imported components.

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