Apple Inc. (AAPL), Google Inc (GOOG): The Significance of “Made in the USA”

And despite the supply chain and manufacturing disadvantages, there are some logistical pluses to American assembly. Although the Nexus Q failed (in part due to its high price), Google was excited about the newfound proximity of its engineering and manufacturing departments. Broadly, it’s easier to ensure quality and consistency when your factory is on the same continent. And it’s much easier to move quickly to make changes or correct issues.

The bottom line

For Apple, I think building the Mac Pro in the United States is a really smart move. It’s a premium product at a premium price, so consumers won’t be put off by a “Made in the USA” surcharge. Heck, they’ll probably like it — there’s a cache associated with owning American-made products these days, and for such a luxury device, I think the pedigree will only add to the appeal.

In addition, the Mac Pro has not sold particularly well in the past few years, and the move is part of a larger refresh that I think has a shot at revitalizing the computer line. In short, I think Apple Inc. (NASDAQ:AAPL)’s decision bodes well for its profit margins in the medium to long-term; once they actually start selling the thing.

For Google Inc (NASDAQ:GOOG), the future is less clear. The company has promised the Moto X at an uncommonly low price — a promise I look forward to seeing it keep. A low-cost American-made phone is one thing, but a low-cost American-made premium phone is quite another indeed. I will be interested to see the quality of the Moto X, and the quantity. And if Google Inc (NASDAQ:GOOG)’s Motorola acquisition and phone manufacturing business is key to your investment, I would advise waiting on the release of this enigmatic device. If Google can pull it off, I think it will be huge — but I’m curious about what corners they may cut.

The article The Significance of “Made in the USA” originally appeared on Fool.com and is written by Steven Yenzer.

Steven Yenzer owns shares of Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Steven is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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