Blog
Comment
P_brane
In the cae of Apple, they have a long history of "offshoring". When I was an ...
KB3001
Never say never eewiz. There are signs that manufacturing in China is becoming ...
Google tries 'Made in the USA'
Bolaji Ojo
6/28/2012 2:12 PM EDT
That struggle has recently led the company even deeper into the electronics hardware market. It developed the Android operating system to challenge Apple Inc. in wireless handsets, acquire Motorola Mobility partly to gain patents and armor itself against lawsuits, and today launch two hardware devices, including a tablet PC and media player.
A report in The New York Times indicates Google isn't hesitant about engaging in some subtle propaganda messaging too. Google's Nexus Q media player (launched Wednesday), had the words "Designed and Manufactured in the U.S.A." inscribed into its base, according to the New York Times article.
Google executives said the company decided to manufacture the Nexus Q, a wireless device that can stream music and video from You Tube when connected to a TV or a speaker system, in the US because "we've been absent for so long, we decided why don't we try it and see what happens?" Andy Rubin, the executive cited reportedly claimed Google "was not engaged in a crusade."
Google may not be interested in a crusade but it may have started one, wittingly or unwittingly. The subject of where US-headquartered companies manufacture their devices is a touchy one in the country and many enterprises have had to withstand withering criticisms leveled by folks angered by the outsourcing of production jobs over the last 20 or so years to lower-cost centers in the Far East and Eastern Europe.
Google's claim that it is merely testing the feasibility of local manufacturing notwithstanding, the ramification of its moves are huge for electronics companies, including rivals like Apple and Amazon.com Inc., with which it is now locked in a nasty fight for market share in the wireless devices market. Today, Google also unveiled its first tablet PC, a seven-inch screen device many believe is aimed squarely at Amazon's Kindle tablet and smaller form rivals like the Nook from Barnes & Noble.
Will Google follow the Nexus 7 with a larger tablet PC to take on Apple's iPad? I believe this is very likely. At least, I won't be surprised if Google starts selling a larger tablet PC. The Nexus 7 tablet PC from Google was manufactured in Asia, unlike the Nexus Q media player. But what if Google finds--from the Nexus Q experience--that a locally produced device can be profitable and competitive against rival equipment made elsewhere? That may move the company to start manufacturing both the Nexus 7 and a larger variant in the United States, putting pressure on rivals to seriously consider the hidden benefits of local production.
Bolaji Ojo is editor-in-chief of EBN, an EE Times sister site. This article originally appeared on EBN.
|
|
|
|
|
DMcCunney
6/28/2012 3:59 PM EDT
"It developed the Android operating system to challenge Apple Inc. in wireless handsets,"
Er, Android was first developed by Android, Inc., beginning in 2003, and the company was bought by Google in 2005. Apple didn't release the iPhone until 2007.
So while Android based devices certainly compete with Apple's iPhone, and some folks like to compare iOS vs Android market share, I think it's an error to say Google made Android to challenge Apple. Google bought Android and funded development to have a mobile device OS, and Apple isn't the only thing it competes with.
Sign in to Reply
Mushroom in the dark
6/28/2012 7:36 PM EDT
Is it really "Made in the USA" or just "Assembled in the USA"? With all the component suppliers located in the Far East this looks more like an election year propaganda rather than a fact. The statement "Made in the USA" should indicate total independence from "out of the US suppliers" rather that transferring back the labor to the US.
Sign in to Reply
dylan.mcgrath
6/28/2012 8:30 PM EDT
@Mushroom: Here is an excerpt from the NY Times article:
"The Nexus Q, which links a TV or home sound system to the Internet cloud to play video and audio content, contains almost all American-made parts. The engineers who led the effort to build the device, which is based on the same microprocessor used in Android smartphones and contains seven printed circuit boards, found the maker of the zinc metal base in the Midwest and a supplier for the molded plastic components in Southern California."
Is every single component made in the U.S.? Probably not, but it appears that Google has made an effort to use all American made parts.
Sign in to Reply
cdhmanning
7/1/2012 7:02 PM EDT
Yup, you have to start somewhere....
100% US content would make the mission close to impossible.
Sign in to Reply
george.leopold
6/28/2012 8:38 PM EDT
Google's decision to manufacturer, repeat, manufacturer, the Nexus Q in the U.S. seems like an honest attempt to begin the process of "reshoring" product manufacturing to the U.S. Maybe this is political, and maybe NYT reporter John Markoff was taken in by Google. But the fact is that we are starting to see more instances of products previously made in China being redesigned and at least being made "production-ready" in the U.S. The Times articles correctly points out that it remains a "trickle," but it may also mean that the offshoring of electronics manufacturing is slowing and the trend will eventually be reversed. I, for one, intend to keep digging on this story.
Sign in to Reply
R0ckstar
6/29/2012 4:36 PM EDT
I am very happy to hear that Google has made this initial effort, and I'm also completely amazed that it's not just superficial PR. This is something that goes a long way toward creating goodwill and a more positive brand image, at least in the eyes of U.S. customers. Many of their customers are also engineers themselves. I think it's an excellent break away from the herd decision that will prove to pay off for them. They didn't have to do it. They could have gone the easy route, but they chose to make the extra effort and I admire that.
Sign in to Reply
mcjw
6/29/2012 10:08 PM EDT
So they make a $300 TV accessory that works only with Android where Made in USA is the only saving grace. Wow. Have fun exploiting the American Dream.
Sign in to Reply
junko.yoshida
6/30/2012 2:45 AM EDT
What I didn't understand in the original NY Times article was that Google did not tell the reporter who (which company) is exactly manufacturing this...we know from the story that it is based in the vicinity of Mountain View, Calif. But why all that secrecy?
Sign in to Reply
docdivakar
6/30/2012 9:01 PM EDT
Junko, I am dying to know as well (being a Silicon Valley resident!). Where does Google plan to manufacture this in high volumes? In the same location?
MP Divakar
Sign in to Reply
cdhmanning
7/1/2012 7:00 PM EDT
What's wrong with secrecy? Everyone does it.
This industry no longer relies on technical innovation to get ahead. Instead you body-slam the competition. Attempts to play nice just get trodden on.
Giving out information like that at an early stage could give competitors a club to wield. For example Apple could easily go buy the company or take similar actions to disrupt them.
Sign in to Reply
Luis Sanchez
7/1/2012 12:31 AM EDT
And the article ends with "... the hidden benefits of local production.". What are such hidden benefits?
Anyway, I think they are really making a statement and perhaps a marketing move. And I think it's working. This projects a good image from Google.
Do no evil. Thus... do good. Seems they are doing good!
Sign in to Reply
KB3001
7/4/2012 10:18 AM EDT
Better communication with your suppliers, agile manufacturing in case things need changing, higher security of supply etc.
Sign in to Reply
Robotics Developer
7/2/2012 4:38 PM EDT
I applaud Google for trying! Time will tell if this is a cost effective and public relations success. Even if they make a little less per unit than they may have using off shore manufacturers, they could have a big win with the customers (at least in the USA). I hope that there is some followup on this story, it would be nice to see how it works out.
Sign in to Reply
Charles.Desassure
7/2/2012 7:29 PM EDT
This is indeed a political statement. Marketing 101.
Sign in to Reply
eewiz
7/3/2012 11:54 PM EDT
Am quoting a conversation b/w Steve Jobs and Obama
"Why can't that work come home? Obama asked.
Jobs' reply was unambiguous. "Those jobs aren't coming back," he said, according to another dinner guest.
The president's question touched upon a central conviction at Apple. It isn't just that workers are cheaper abroad. Rather, Apple's executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their U.S. counterparts that "Made in the USA" is no longer a viable option for most Apple products."
http://www.heraldtribune.com/article/20120123/ARTICLE/301239999
Sign in to Reply
KB3001
7/4/2012 10:21 AM EDT
Never say never eewiz. There are signs that manufacturing in China is becoming too expensive for some firms/markets. I doubt the trend will be reversed completely but some manufacturing is and will be coming to the west as the world economy rebalances.
Sign in to Reply
P_brane
7/6/2012 2:13 AM EDT
In the cae of Apple, they have a long history of "offshoring". When I was an adolescent in the 1980's I worked for an Apple re-seller. The Apple II Rev 7.0 and onwards Motherboards were made in Ireland. The Irish Government was giving very generous tax and other benefits that were useful to many manufacturers who needed to supply the European and other marketsoutside continental USA and Japan. The switchmode power supply was still made in the USA by a well known maker of such products. I have to say we were a bit dismayed especially as the same year, Apple laid-off 2,000 staff in Cupertino.
No-one in the Western world could sensibly want to see the death or long term damage of US Manufacturing and research and the jobs should and must go home to the US and I don't live there any longer. Remember the US reached the status of the worlds biggest economy with less than 400 Million people. That is an outstanding achievment in all respects not to mention the moon missions along with an endless list of other achievements that help the rest of the world.
Sign in to Reply