Has Steve Jobs built a secret MacBook factory?
"I'm as proud of the factory as I am of the computer," Steve Jobs told Fortune 18 years ago, describing the 40,000-square-foot plant he had constructed in Fremont, Calif., to manufacture circuit boards for his ill-fated NeXT, the $10,000 workstation into which Jobs poured his heart and soul after he was forced out of Apple (AAPL) in 1985.
The factory, as Jobs described it, had everything: robots, lasers, tolerances within one 10,000th of an inch, defect rates of less that 17 parts per million — one tenth the rest of the industry's — and the speed to turn out 60 machines a day. (link)
Now, according to a pair of reports in 9 to 5 Mac and Computerworld Blogs, Jobs has built that plant's successor: a state-of-the-art manufacturing facility that is already turning out the new line of MacBook and MacBook Pros that Apple is expected to introduce on Oct. 14.
This factory, according to Seth Weintraub, a tech reporter with good sources within Apple and a knack for correctly predicting the company's next moves, is the answer to a question that has been haunting Apple watchers for the past month: What is "the Brick"?
The Brick, Weintraub says, is not a new Apple TV, a table-sized Mac, a wireless USB hub, a Windows-smashing software breakthrough — or any of the other ideas put forward in the month of fevered speculation since Weintraub's 9-to-5 colleague Cleve Nettles first posed the question. (See Anatomy of an Apple rumor: "The Brick".)
What the Brick really is, according to Weintraub's sources, is a block of high-quality, aircraft grade aluminum out of which Apple's new laptops will be carved using robot-controlled lasers and high-powered jets of water in Jobs' new factory.
"It is totally revolutionary, a game changer," writes Weintraub. "One of the biggest Apple innovations in a decade." (link)
It may also be the answer to another mystery that has bedeviled Apple watchers — the innovation that Apple CFO Peter Oppenheimer, speaking at the last quarterly earnings conference call, warned analysts would cut deeply into Apple's near term operating margins but result in something that "Apple's competitors won't be able to match" for years to come. (See Apple teases with mysterious "product transition".)
Weintraub paints a picture, drawn heavily from a long piece in The Mac Observer by John Martellaro, a former NASA engineer and Apple manager, of a nonpolluting, energy-efficient, wind- or solar-power plant, built in the United States, that would free Apple of its dependence on Chinese manufacturers (and unpleasant Chinese labor conditions) and fulfill Steve Jobs' long-held dream of moving Apple both up and down the value chain — building a legacy at Apple that could survive and prosper long after he is gone.
"An Apple factory (or two), in the right place," writes Marellaro, "costing several billions would be a worthy endeavor for Apple and its cash. It would achieve the grandest goals for Apple's technical future, make a contribution to the planet and its people's well being and help insure Apple's financial and political security." (link)
Marellaro concludes on a wistful note: "But, sigh, it's just an idea"
We'll find out soon enough how much of it is true.
I was hoping they'd get away from aluminum back to Titanium (at least as an option).
In the end, who cares how the laptop case was carved. All I care about is weight and sturdiness.
If you are concered about environment, keep your laptop – don't throw it away.
Advertising a manufacturing process that has existed for 20+ years is just plain ridiculous. Carbon fiber would have been groundbraking, but not lasered aluminum
I agree… the original Macintosh plant, in Fremont, built ‘82 – ‘83 was highly automated, and featured in one of the first MacWorld issues.I find it unlikely that a large plant could be built without more information getting out about it before now.
It's only a rumorAt this stage at least. So don't get all worked up over it. As for those complaining of the cost of the MacBook Pro, take a closer look at the MacBook. If you are still running a G4, you would find the MacBook a big jump, and it costs a lot less than the Pro. Comments regarding the Next plant reflect latecomers to the Apple / Jobs watchers. The original Macintosh plant, in Fremont, built '82 – '83 was highly automated, and featured in one of the first MacWorld issues.I find it unlikely that a large plant could be built without more information getting out about it before now. So, I'm betting that this rumor is at most 50% accurate
Steve Jobs is a dreamer if he believes he has come up with new technology that "competitors won't be able to match for years to come".
Automation seems likely but thats nothing new and cheap parts will always come from overseas.
Cost…will be paid for by their profit margins. Think Macbook Air, iPhone, iPod, Applecare, Apple Pro Care, easily 100%.
Billet aluminium=waste of money & time carving it out.
Stamped curved aluminium=cost efficient.
Carbon Fiber=Expensive, lightweight & very strong.
A new factory tht too on american soil! this is a mere trick played by jobs to raise his stocks as they were falling.He he have tht much money y dont he try to do some thing for the country when people like me are loosing jobs.
Why does it have to be such hi-brow alluminium? Apple, get your costs down, somewhere near the cost of a PC laptop and you'll own the industry. Everyone I know wants one, but when you can buy a PC laptop for $7-800 and the equivalent Mac laptop is $1,400 it's an arrogant sagger that's stifling your ability to grab huge handfulls of market share. I would like to upgrade my PowerBook G4 to the new bit, bauds, speeds and feeds, but can not justify the $3,000 it would cost, plus all the software upgrades. You are stfling your own customers. We're in a deep recession, and your (MY) stock is in the crapper. Or do you people understand this stuff?
"Every little flatulence of his holiness is a “game changer”.
This is really ridiculous but endemic of the brainwahsed Apple worshippers, and that includes the analysts.
An analyst that calls a new case process of a laptop pc a “game changer” is either on drugs or is insincere."
Somebody is a little sensitive on Apple today aren't they? If you really hate reading stories like this why do you keep reading them and spend the time writing about how much you hate reading about Apple and Steve Jobs? The solution is simple… go read the Microsoft stories and stop reading the Apple ones.
I am in the middle of Jobscultists and the skeptics. The great thing about Steve is that he does try (successfully) to make cool shite, and I think that would include factories.
they have tons of cash, so funding it is not a challenge.
I would like to see the ideas that his minions are submitting for this fabled factory, because I am sure it will have some very advanced thinking.
AAPL will touch 400 by late 2010.
If Apple is building a plant, they'll make it as revolutionary as the iPhone is to mobile phones.
Anything is possible… for instance a 100% fully automated plant that would produce 100% recyclable machines.
I mean if Steve Jobs has decided to go that way, then he has something totally revolutionary in mind concerning manufacturing, that all of us cnn't even think about.
A factory to take advantage of cheap highly-motivated American labor would be a significant advantage.
Every little flatulence of his holiness is a "game changer".
This is really ridiculous but endemic of the brainwahsed Apple worshippers, and that includes the analysts.
An analyst that calls a new case process of a laptop pc a "game changer" is either on drugs or is insincere.
If they can build a multi-billion dollar fab in the US in total secrecy, we should put Jobs in charge of the NSA as well.
The writer who said that Apple products are obsolete one year after production is just flat out wrong. My wife's Mac is almost 9 years old and still chugging away. My iBook is absolutely ancient and slow to book but still efficiently running the latest Mac Office software. My iMac G5 is not the intel version but has absolutely nothing wrong with it. All of these machines run together on a home network. One of the things that I identified and liked about the Mac was its backward compatibility. The Intel Mac broke that chain as did the MacPC before it but those changes were years in the making and still did not shut out owners of previous version. All in all, these machines have been a good investment. Where things get a little questionable for me is with the iPod. I have owned 5 of the things. I now run three. My daughter's is kaput, my wife just cannot get into tech stuff and her nano is a first gen with about ten hours use on it. My son is as bad as me. But I hasten to add that in the case of the iPod it is not obsolescence that has been created but demand – the first gen ipod still works!
Running the new robot plant sounds like a perfect job for Wall•E!!
Only fair, since SJ is his grandfather
Think SR-71 BlackBird. Apple builds the world's first stealth computer made from billets of titanium. Sure it's a bunch of nonsense, but who cares. Apple stock is down and we all deserve a couple of laughs.
Since when does Apple start to do manufacturing on American soil? Is anything made in America anymore?
tell me what the point is of producing a "super" mac pro when they themselve will make it an obsolete brick just about a year later when they design the "next" step in their version of evolution. impressive as they are they are still essentially a throw away product and thats where the real problem lies.
I can imagine that heatsinking might be improved by starting with a billet of aluminum rather than a stamped sheet. This might lead to fewer parts with better thermal performance.
The cash flow statements don't suggest a multi-billion dollar investment in a new factory unless Apple somehow sweet-talked all the contractors into taking delayed payment.
with Apple anything is possible …..
the only company in the world that can materilize
even the most absurd idea..
Be careful fellow Apple dreamers. When this sort of rumor gets going and has us all whipped up into a lather, it creates a bubble of enthusiasm.
Before we know it, analysts start believing the rumors and start raising expectations (after all, most of their 'analysis' is just crazy emotions anyway!). Then when reality doesn't meet these crazy, unreasonable expectations, the stock takes a large hit.
Keep it real.
I see no advantage to using a billet that is laser-milled over stamping a sheet of aluminum.
In the automotive industry, some parts use billets that are milled, ground, etc. Other parts start as sheet metal are stamped. The billets are used for things like brake calipers and crankshafts. They are too thick to be stamped. Car hoods are stamped. I can't see anything in my AluPB or TiPB that would be improved by starting out as a billet over a piece of sheet aluminum. Let's look at the last two new Macs, the iMac and the MBA. Both start out as sheet aluminum. Neither use billets. The MBA actually uses the tricks that car makers use, to stiffen the case, they curve it. Curved sheet metal is far stiffer than uncurved. One could call it a monocoque. There's nothing of substantial thickness in the laptops that require a billet.
Billets are harder to turn into product, they take time to mill and grind. In this case, the idea is to laser mill and water grind. It's just not cost-effective. Stamping is fast and easy.
The big problem with Marterallo's idea is that a mfring site still needs suppliers. Building/assembling your computer using robots is cool, but you still need a supply chain. Moving mfring to Arizona, is fine, but where are the cost savings if the GPU and CPU boards are built in China, or if the LED screen is built in Taiwan?
The problem with Weintraub's idea is that it makes no sense. A case for a computer is not better if it starts as a billet as opposed to a sheet. And, if this were to impact this quarter's margins, then this would have to already be producing product. Building a plant is not going to hit gross operating margins. It hits elsewhere.
It sounds great and it woulf fit perfectly into SJs manner to controll erverything….but don`t you thibk that Foxconn would have mentioned that they had lost one of their biggest costumer and will no longer build notebooks for Apple?
As this would be an electronic product, there is currently no way to obtain error free products (boards) even if robots or automation is used. Machines are not yet perfect and some manual labor is needed either to touch up the final product, inspect it or rework it.
This fits into the Apple way. It is easier to keep secrets when all is done in-house. It also eliminates many issues related to model changes as the pipeline is significantly shorter. If true, look for even faster innovation from Apple. This would explain the warnings on reduced margins. They return after Apple ramps up production. Think about increasing volume in response to booming sales after economic recovery.
As for the skeptics, why not start with a block of aluminum… think of the heat exchange advantages. Faster chips are hotter? Dissipate heat through the entire case.
And for the Greenies: scrap aluminum is 100% recyclable. Your next MacBook might well have started as Joe Sixpack's beer can. Look for Apple to offer a future trade in program to redefine computer recycling.
Several issues:
1) Aluminum consumes humongous amounts of electric power to produce, hence implementing lots of AL in PC or device cases hits the sustainability of project. Exception would be if recycled AL was used, but there is a lot of feedstock competition.
2) The "greenest" factory would be re-tooling one that has been fallowed. Sure solar and wind are "cool" but they need to be used in combination with super-efficiency designs and technology, otherwise you have a poorly allocated investment. In addition such locations may have a hungry work force that would appreciated the jobs.
Given Apple's history I would not be surprised they pull some rabbit out of the hat right now, but I agree with other commenter's — more or less "where's the beef" as far as supporting evidence that such a project is the real deal. There are too many Apple-watchers for something of this magnitude to slither along in the weeds with not much evidence trickling out.
I think the brick will be a Multi Touch table similar to microsoft…if they get an early jump on them, they could take over the market
A company doesn't necessarily need a team architects and ordinary building contractors to build a high tech manufacturing plant. Not if they have acquired a large existing facility and enlist engineers to implement the network of machinery, in addition to the requisite new electrical, mechanical, and digital control systems. This might be easier to keep quiet. It will be interesting to see if they have in fact accomplished the feat in this manner.
It seems to me that the existence or building of a new multi-billion dollar factory in the US should be pretty easy to verfy.
People bring up labor costs. Sounds like there isn't so much labor involved with all the robots, etc. This would be great!
Great for Apple and USA!
As Dell closes their plants, you could buy a macbook, MADE IN USA with no pollution.
Snub the bankers and their Recession!
God! If only the USA had a few dozen companies like Apple.
Debt Free, expanding, innovative, with 20 billion in the bank!
Sounds like the manufacturing (i.e. labor) costs will be much greater than what they are used to in Taiwan. And given the current market conditions, I doubt they can raise prices any more, as demand slumps (which is why they were downgraded recently). That means smaller margins, and more hit to the stock.
Apple simply doesn't have a monopoly (like Intel does) to go out and build it on their own. They are chiefly a design company — not a manufacturing company. The latter have much lower margins, different operating procedures and culture — which Apple certainly do not have, nor would they particularly want.
It will be interesting to see if this speculation is true.
Wow! What a wonderful piece of speculation. A factory of this type would certainly be a major game changer. Hopefully we will also see a new customer service center with staffers answering phones from our country 100% of the time!
Let me get this straight.
Apple has built (or is in the midst of building) a new manufacturing plant that carves notebook cases from solid aluminum.
And….
Of all the people involved (architects, engineers, designers) there's not a single photo or discussion.
Nobody had heard about this until sudden speculation this month.
Has Apple also found a way to significantly reduce the labor component as well?
This is interesting speculation but I'm really doubtful because there hasn't been any proof (at least not cited in the three stories that I read) other than speculation about Jobs and his desire for a facility.
Let's see some proof of this other than idle speculation.
Read "Crash Proof". A factory would be great.
Better our people be robot oilers than burger flippers. Again, Apple may be out ahead as usual.