Apple to return some Mac production to U.S. in 2013

SAN FRANCISCO/NEW YORK (Reuters) – Apple Inc plans to move some production of Macintosh computers to the United States from China next year, Chief Executive Tim Cook said in remarks published on Thursday, in what could be a important test of the nascent comeback in U.S. electronics manufacturing.

Apple makes the majority of its products, from Macs to the iPhone and iPad, in China, the world’s factory floor for electronics. But like other U.S. corporations, it has come under fire for relying on low-cost Asian labor and contributing to the decline of the U.S. manufacturing sector.

Cook did not say which Macintosh products will be produced in the United States. But the effort is expected to go well beyond simple final assembly of devices, with Apple and unnamed partners building most or all of the components in the United States as well.

The company will spend more than $ 100 million on the U.S. manufacturing initiative, Cook said in an interview with Bloomberg Businessweek, published on Thursday.

“This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money,” Cook said.

He told NBC’s “Rock Center” program, in an interview to be aired later Thursday, that only one of the existing Mac product lines would be manufactured exclusively in the United States.

Apple declined to comment beyond the interview.

Apple’s decision, hailed by some analysts as an important first step even if it affected a tiny fraction of its overall output, was dismissed by others who saw it as an opportunistic public relations ploy with little effect on jobs.

Some Apple suppliers were struggling to assess its impact.

“At the end of the day, Apple knows moving production to the U.S. means lower profits for Apple,” said a senior executive at Taiwan’s Quanta Computer Inc who declined to be named because of the companies’ business relationship.

“If Apple is really serious about moving production to the U.S., they would need to invest 10 times or even 100 times of that amount. We see only a minor impact on Apple suppliers.”

Cross Research analyst Shannon Cross said it made sense for Apple to bring some manufacturing back to the United States, because some components were already being produced there.

Also, while cheaper labor costs have been a key factor in encouraging U.S. manufacturers to move production to China, wages and other costs have risen sharply – particularly in the main coastal manufacturing centers. Labor costs, moreover, account for only a tiny portion of overall expenses: the research firm iSupply says the total cost, including labor, for final manufacturing of an iPhone 5 is just $ 8.

Experts estimate that the total base cost of all components that go into the gadget, or bill of materials, comes to around $ 200.

Cross pointed to other potential benefits of U.S. manufacturing, including mitigating the risk of intellectual property theft.

Cook has said in the past that he would like to see more of the company’s products assembled back home, but declining U.S. manufacturing expertise made that difficult. Apple makes applications processors for the iPad and iPhone via Samsung Electronics in Austin, Texas, and sources glass for the same devices from a Corning facility in Kentucky.

IHS iSuppli, a research firm that tracks supply chains, said the company now outsources production of notebook personal computers to Taiwan’s Quanta Inc and Foxconn, which also makes the iPhone and iPad, and Pegatron Corp. Foxconn and Quanta have U.S. facilities.

“Apple’s move appears to be a symbolic effort to help improve its public image, which has been battered in recent years by reports of labor issues at its contract manufacturing partners in Asia,” Craig Stice, senior principal analyst for computer systems at His. “However, given Apple’s high profile in the market, the company’s ‘insourcing’ initiative could compel other companies to follow suit and transfer production to the United States over the next few years.”

Apple’s stock rose 1.6 percent on Thursday, a tepid bounceback from Wednesday’s 6.4 percent dive that was its biggest single-day loss in almost four years.

MAKING STRIDES

Analysts say the stock, which has fallen steadily since September, has come under pressure from investors worried about the rapidly intensifying competition from Google Inc’s Android products.

Samsung, in particular, has emerged as a formidable competitor, chipping away at Apple’s dominance in the tablet market and leading the smartphone pack in China, where the U.S. company’s smartphone market ranking fell to No. 6 in the third quarter from No. 4 in the previous three months, research outfit IDC estimates.

Samsung’s stock has climbed 8 percent since the end of September.

Apple’s domestic manufacturing effort will likely buy the brand some goodwill at home, where the debate about off-shoring has heated up as the economy sputters along. It has also come under fire for excessive working hours and dismal conditions at Foxconn’s plants in China, and critics have accused Apple of helping to create a high-stress environment for migrant workers.

Beyond the marketing boost, some analysts said Apple could blaze a trail should it prove that American manufacturing of electronics can be profitable.

“It seems to me like a nice time for Apple to do something,” Gartner analyst Carolina Milanesi said. “If it can be a profitable business, and others follow, then Apple has shown the way.”

Others were skeptical that Apple’s latest move was much more than a symbolic gesture.

“Such a strategy has been used by other companies in the past, which had no actual impact on their outsourcing,” said Li Qiang, director of New York-based China Labor Watch, in an emailed statement.

“The key question is how many jobs (percentage of the entire workforce) and what kind of jobs (production or administration) are to be moved back. I don’t think Apple is ready to relocate a large percentage of its production jobs back to U.S.”

Earlier this year, Google made waves when it announced it would build its Nexus Q home entertainment streaming device – deemed by many analysts to be an experimental product – in the heart of Silicon Valley. Google said it hoped to speed up innovation on the device and improve time-to-market.

Lenovo Group Ltd – China’s largest PC maker – said this year it will move a limited amount of computer manufacturing to North Carolina, to be closer to the market.

“Lenovo’s announcement appears to have flown under the radar,” said Jeffrey Wu, senior analyst for OEM research at IHS.

“Apple is a company that is always in the spotlight, and the company’s image sets the standard in the PC world. If Apple is doing it, will others follow?”

(Additional reporting by Faith Hung in TAIPEI, Lucy Hornby in BEIJING and Lee Chyen Yee in HONG KONG; Editing by Maureen Bavdek, Richard Chang and Ken Wills)

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Spotify gains more listeners and Metallica

(Reuters) – Digital music service Spotify rolled out new features and said it increased the number of active users at a press event that featured a special musical performance by Frank Ocean.

Spotify now has 20 million active users worldwide, up 33 percent in less than six months. The company counts five million people among paying subscribers, a 25 percent increase during the same time period.

Spotify also revealed it has one million paid subscribers in the United States, that it added a Twitter like functionality that allows users to follow one another, and that the rock band Metallica‘s music was now available on the service.

The company made the announcements at a splashy New York event on Thursday that included a conversation between Spotify backer Sean Parker and Metallica drummer Lars Ulrich.

Ulrich’s appearance is notable since his band was one of the leading crusaders against Napster, the digital music sharing company co-founded by Parker more than a decade ago that was a flashpoint for digital rights and artist compensation.

“We have more in common than the whole thing that happened 12 years ago,” said Ulrich about Parker.

Ulrich said the decision to join Spotify coincided with the fact the band now owns its entire catalogs of music.

Spotify, which strikes royalty deals with record labels, has paid more than $ 500 million to the music industry since its launch four years ago – an amount that has more than doubled in the past nine months. It pays roughly 70 percent of its revenue back to rights holders.

“The more music that gets shared the more money goes back to artists,” said Daniel Ek, CEO and co-founder of Spotify.

Spotify is a free on-demand streaming music service that is rising in popularity. People can pay to hear music without interruptions from advertising and the ability to play lists and preferences from any device any time.

The company has struck up a partnership with Facebook – Parker is Facebook’s founding president – that allows listener’s to display their music choices on their personal pages.

Streaming music services such as Spotify and Pandora are being carefully watched by the music industry concerned over the royalty payments.

For example, Pandora is pushing the Internet Radio Fairness Act, which would change how royalties are paid to artists. As of now, online streaming music companies like Pandora pay a different rate to license music than say traditional radio companies.

Many of music’s most notable names like Billy Joel and Rihanna are opposing the proposed change.

(Reporting By Jennifer Saba in New York)

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Lurie Children's Hospital sees surge in patients at new Chicago building

Executives at the Ann & Robert H. Lurie Children's Hospital of Chicago expected a "bump" in patients when the $855 million hospital opened in June.

They weren't prepared for a mountain.

Since the former Children's Memorial traded its patchwork of aging buildings in Lincoln Park for a new high-rise in Streeterville on June 9, patient volume has surged, more than doubling hospital projections.

The number of patients is up about 16 percent in the first five months, according to hospital data, an increase driven by an influx of children with more acute health problems, including transplant patients, kids with heart problems and others in need of specialized care.

Revenue over that five-month period increased 12.9 percent to $222 million.

"We expected to have a new-hospital bump in (patients). We had a new-hospital mountain," said Michelle Stephenson, Lurie Children's chief patient care services officer and chief nurse executive. "We've had some months where the (number of inpatients) was 24 percent over what we expected. "

To meet the demand, the hospital hired 151 nurses to ensure full coverage, she said.

Those new hires came on top of about three dozen pediatric specialists and department heads Lurie Children's recruited in the run-up to the hospital opening.

Stephenson said the hospital has yet to determine the specific reasons behind the jump in patients, but said data shows it is drawing more children from the collar counties and downstate.

She also cited the location, adjacent to Northwestern Memorial Hospital, Northwestern University's Feinberg School of Medicine and Prentice Women's Hospital, which is connected to Lurie via an enclosed skyway.

Moving 31/2 miles south next to Prentice, which sends Lurie about a quarter of its patients, is likely a significant factor in the patient boom, said Jay Warden, a senior vice president at The Camden Group, a consulting firm.

"It used to be a challenge for moms to have a baby transferred to Children's while they had to stay at Prentice until they're discharged," Warden said. "Now it's the best of both worlds for both hospitals."

Warden said hospitals typically get a burst of new patients when they open facilities, in part because of the accompanying marketing and publicity blitz. That's not always the case with children's hospitals, which tend to serve the sickest and smallest of patients who have few other options.

He said limitations at the old hospital likely kept some patients away.

Indeed, Children's Memorial had a listed capacity of 247 beds, but with shared rooms and other factors, executives considered the hospital full at 220 patients, Stephenson said. The Lurie hospital has a capacity of 288 beds in all-private rooms, which it has come close to filling on a few occasions.

One ward that's consistently bursting at the seams is the neonatal intensive care unit, which was built to handle 44 patients but is averaging about 50. Some of the children have been bumped into shared space in the hospital's cardiac care unit, Stephenson said.

As for patients, the new facility has been a hit, with satisfaction scores up an average of 10 percent, hospital officials said.

Tina Sneed, whose 18-year-old daughter Whitney Ballard recently underwent a liver transplant at the hospital, said she's happy with the expanded rooms and new areas for parents.

She and her daughter have made several 7-hour trips from Kentucky in the last 18 months to see specialists, including overnight stays at both facilities.

Her only complaint?

"The waiting room was kind of crowded," she said. "It was nothing too bad, they just have so many (surgeries) going on at the same time we barely had room to move in there."

pfrost@tribune.com

Twitter @peterfrost

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Police break up dog fight in Dolton

Tribune illustration (Tribune illustration / March 19, 2012)

By Peter Nickeas




Tribune reporter

10:30 p.m. CST, December 5, 2012

Police rescued up to ten dogs from a dog fighting ring in Dolton on Wednesday night, authorities said.

Someone called police in the south suburb and told them about the dog fighting in the 1500 block of East 142nd Street and responding officers "were able to observe the incident and apprehend suspects at the scene," said TaQuoya Kennedy, a spokeswoman for Dolton.

“The dogs (pit bulls) showed signs of improper care and abuse / indications of dogfighting,” she said in a statement late Wednesday.“We have numerous suspects in custody, and we have called out the Cook County unit that investigats dog fighting to assist us with the charges and ongoing investigation.”

Cook County sheriff’s police were alerted to the dog fights by Dolton police and are assisting in the investigation.

“They called us immediately, knowing we handle this stuff all the time,” said Frank Bilecki, spokesman for the Cook County Sheriff’s Office.

Evidence technicians, animal crimes investigators and animal control are still at the scene, Bilecki said. 

"When police hit the building people fled out of there ... We’re told that there might be cameras. Police are going to be out there for a little bit gathering evidence," Bilecki said.

Two males are in custody, but their ages weren't immediately available, Bilecki said.

Kennedy said at least four dogs were found along with a makeshift ring. Bilecki said police found as many as 10.

pnickeas@tribune.com
Twitter: @peternickeas

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Sean Bean replaces Brendan Fraser in TNT pilot “Legends”

LOS ANGELES (TheWrap.com) – TNT‘s upcoming pilot “Legends” is getting a Stark makeover.

Sean Bean, who played ill-fated Lord of Winterfell Eddard Stark in HBO’s “Game of Thrones,” has signed on to replace Brendan Fraser in TNT’s upcoming pilot “Legends.”

Fraser dropped out of the pilot last month; the show would have marked his first starring turn on a TV series.

Bean will play Martin Odum, a deep-cover operative who has a chameleon-like ability to transform himself into a different person for each mission. The project is based on a book by spy novelist Robert Littell.

“Homeland” duo Howard Gordon and Alexander Cary are executive-producing the pilot, which comes from Fox 21, as are Jeffrey Nachmanoff (“The Day After Tomorrow”) and Jonathan Levin (“Charmed”).

Deadline first reported news of Bean’s “Legends” casting.

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Recipes for Health: Winter Squash and Walnut Spread — Recipes for Health

Andrew Scrivani for The New York Times

2 pounds pumpkin or winter squash, such as kabocha or butternut, seeds and membranes scraped away, cut into large pieces (if using butternut, cut in half crosswise, just above the bulbous bottom part, then cut these halves into lengthwise quarters and scrape away the seeds and membranes)

3 tablespoons extra virgin olive oil

1/2 medium onion, finely chopped

2 tablespoons finely chopped fresh mint

1/8 teaspoon freshly grated nutmeg

1/4 cup (1 1/4 ounces/35 g) lightly toasted walnuts, finely chopped

1 ounce Parmesan, grated (about 1/3 cup)

Salt and freshly ground pepper

1. Heat the oven to 425 degrees. Line a baking sheet with foil and oil the foil. Place the squash on the baking sheet and rub or toss with 1 tablespoon of the olive oil. Place in the oven and bake until tender, 40 to 60 minutes depending on the type of squash and the size of the pieces. Every 15 minutes use tongs to turn the pieces over so different surfaces become browned on the foil. Remove from the oven and allow to cool, then peel and place in the bowl of a food processor fitted with the steel blade. Pulse several times, scrape down the sides of the bowl, then purée until smooth.

2. Heat another tablespoon of the olive oil over medium heat in a large, heavy skillet and add the onion. Add a generous pinch of salt, turn the heat to medium low and cook, stirring often, until very tender, sweet and lightly caramelized, about 20 minutes. Remove from the heat and add to the squash. Add the mint, nutmeg, walnuts, Parmesan, and 1 tablespoon olive oil and pulse together. Season to taste with salt and pepper. Serve on croutons.

Yield: 2 cups

Advance preparation: This will keep for three to four days in the refrigerator and freezes well. It benefits from being made a day ahead.

Variation: Omit the Parmesan for a vegan version. If desired, blend in 1 to 2 teaspoons of light miso.

Nutritional information per tablespoon: 35 calories; 2 grams fat; 0 grams saturated fat; 1 gram polyunsaturated fat; 1 gram monounsaturated fat; 1 milligram cholesterol; 4 grams carbohydrates; 1 gram dietary fiber; 15 milligrams sodium (does not include salt to taste); 1 gram protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Clock running out for owners of prime parcels near McCormick Place

The development team behind a long-stalled plan to build hotels and restaurants just north of McCormick Place suffered a serious setback in federal bankruptcy court on Wednesday afternoon.

Judge Jack Schmetterer granted a motion by lender CenterPoint Properties Trust to reject the latest development plan of property owner Olde Prairie Block Owner LLC, which is led by developers Pamela Gleichman, Karl Norberg and Gunnar Falk.

Schmetterer said Olde Prairie failed to show its plans were financially plausible, noting its pledges from investors were highly conditional.

"It's a maybe situation," he said. He gave them 10 days to produce a more solid plan.

"I urge them to take their best shot, because it is the last one they will get," he said. The next hearing is Dec. 17.

Gleichman said she is confident she can get more iron-clad commitments from her team's investment partners within that time frame.

If Schmetterer dismisses the bankruptcy case at the next hearing, it would open the door for a foreclosure auction of the property. This would make it possible for the Metropolitan Pier and Exposition Authority, the state-city agency that owns McCormick Place, or other parties, to bid for the properties located on the north side of Cermak Road, across the street from the authority's administrative offices and the West Building of McCormick Place.

McCormick Place officials are aiming to vastly expand the amenities surrounding the convention complex to include more hotels, restaurants, entertainment venues and an arena that could host large-scale corporate assemblies and potentially collegiate sports such as DePaul Blue Demons basketball.

DePaul University, which would like to bring its men's basketball back to the city from its current home at the Allstate Arena in Rosemont, is weighing a number of sites. McCormick Place and United Center officials have acknowledged talks with the university.

Opposition to an arena on the Olde Prairie blocks surfaced this week, with the Prairie District Neighborhood Alliance writing a letter stating an arena would be out of character in the historic residential area and would create traffic problems. Ald. Robert Fioretti, whose 2nd ward includes McCormick Place, has expressed opposition to an arena on that site as well.

kbergen@tribune.com | Twitter @kathy_bergen

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Hamstring strain could sideline Urlacher for season

The Bears have to brace themselves for the possibility of Brian Urlacher missing at least the rest of the regular season.

Multiple sources told the Tribune that Urlacher won't play for the next three games at a minimum after suffering a Grade 2 right hamstring strain during Sunday's 23-17 overtime loss to the Seahawks. An MRI confirmed the severity of Urlacher's injury.

Nick Roach is expected to make his fourth career start at middle linebacker Sunday in place of Urlacher, with Geno Hayes expected to take Roach's usual strong-side linebacker spot.

The Bears (8-4) have four more regular-season games, starting with Sunday's division matchup against the Vikings in Minnesota. Urlacher hopes to recover in time for the playoffs, which start with wild-card weekend games Jan. 5-6.

If the playoffs started today, the Bears would be the fifth seed against the fourth-seeded and NFC East-leading Giants (7-5). To remain in playoff contention, the Bears need to win at least two of their final four games against the Vikings (6-6), Packers (8-4), Cardinals (4-8), and Lions (4-8).

Urlacher's return in a month, however, might be a long shot considering the severity of the injury.

Gus Gialamas, an orthopedic surgeon from Sea View Orthopedic Medical Group in San Clemente, Calif., said a Grade 2 hamstring typically takes four to six weeks of recovery.

"Grade 2 means it's not a complete rupture, but it's a partial rupture,'' Gialamas said. "It takes a while -- maybe a week to 10 days -- for the inflammation to stop. That muscle then has to heal, and then you have a lot of physical therapy for strengthening and stretching. The goal is to avoid as much scar tissue in the hamstring as possible.

"I'm thinking he would be lucky to come back in four weeks, and I wouldn't be surprised if it was longer than that. It's just a tough injury.''

When reached by the Tribune, Urlacher declined to discuss the injury or his playing status. He initially felt a "pop'' while chasing Seahawks quarterback Russell Wilson near the sideline during overtime. Urlacher pulled himself from the game before the final play.

He told WFLD-Ch. 32 this injury isn't as serious as a similar one in preseason of 2004 with which he missed seven games.

"I did that on the first day of training camp and that MRI showed more damaged back then than it did this time," he said.

The eight-time Pro Bowler entered the 2012 season recovering from a serious knee injury. He sprained the medial collateral ligament and partially sprained the posterior cruciate ligament in his left knee during last year's season finale against the Vikings.

Despite sitting out some practices to rest his knee, Urlacher started the first 12 games.

The Bears are 7-15 without Urlacher since he entered the league in 2000.

"He's the leader of our defense,'' defensive tackle Henry Melton said Tuesday. "He's a huge locker room guy. We love having him around. He's what Chicago Bears football is all about.''

Nevertheless, Melton expressed confidence in Roach.

"Nick has been rotating (at middle linebacker in practice) just in case measures called for it,'' Melton said. "It's not going to be the same without Brian, of course. But Nick can get the job done.''

The 34-year-old Urlacher has a base salary of $7.5 million in this, the final year of his contract. He expressed a desire to play at least two more seasons, depending on his health. His says his knee feels better than ever after multiple procedures. Now, it's a matter of how long the hamstring strain lingers.

General manager Phil Emery wouldn't commit to re-signing Urlacher and said any contract offers would be based on performance.

Could Urlacher have played his last game with the Bears?

"I do not think that's going to happen,'' he told Ch. 32. "But, if it does, I have had a really good and long career so I would be sad, but I would not be crushed."

Urlacher has made a statement this season with a team-leading 88 tackles, one interception return for a touchdown, three forced fumbles and two fumble recoveries. He was named the NFC's Defensive Player of the Week following his Week 9 performance against the Titans.

The club re-signed Dom DeCicco to the 53-man roster to add depth at the linebacker position, bringing him back three months after he was released with an injury settlement (groin). He took Patrick Trahan's spot, who was released on Tuesday.

DeCicco was second on the team with 17 special-teams tackles as an undrafted free agent from Pitt a year ago. He did play middle linebacker during training camp when Urlacher was sidelined with his knee issue.

vxmcclure@tribune.com

Twitter @vxmcclure23

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Amazon launches Kindle content service for kids

NEW YORK (AP) — Amazon is launching a subscription service for children’s games, videos and books aimed at getting more kids to use its Kindle Fire tablet devices.

Amazon.com Inc. plans to announce Wednesday that the Kindle FreeTime Unlimited service will be available in the next few weeks as part of an automatic software update.

Amazon said subscribers will have access to “thousands” of pieces of content, though the company did not give a specific number. Kids will be able to watch, play and read any of the content available to them as many times as they want. Parents can set time limits, however.

The service, aimed at kids aged 3 to 8, will cost $ 4.99 per month for one child. It’ll cost $ 2.99 per child for members of Amazon Prime, the company’s premium shipping service. Amazon Prime costs $ 79 per year for free shipping of merchandise purchased in the company’s online store.

Family plans for up to six kids will cost $ 9.99 per month and $ 6.99 for Prime members.

The Kindle already allows for parental controls through its FreeTime service. Parents can set up profiles for up to six children and add time limits to control how long kids can spend reading, watching videos or using the Kindle altogether. With the content subscription service, kids can browse age-appropriate videos, games and books and pick what they want to see. They won’t be shown ads and will be prevented from accessing the Web or social media. Kids also won’t be able to make payments within applications.

Amazon is launching the service as competition heats up in the tablet market among Apple, Barnes & Noble, Microsoft and Samsung. Amazon’s strategy is to offer the Kindle at a relatively low price and make money selling the content.

Offering a subscription service aimed at kids helps set the Kindle apart from its many competitors.

“We hope that our devices are really, really attractive for families,” said Peter Larsen, vice president of Amazon’s Kindle business.

Gadgets News Headlines – Yahoo! News

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Hugh Hefner heads to altar again, with “runaway bride”

LOS ANGELES (Reuters) – Playboy founder Hugh Hefner is headed to the altar again – with the blonde Playmate who ditched him five days before their planned wedding in 2011.

Hefner, 86, and his former “runaway bride” Crystal Harris, 26, obtained a marriage license in Beverly Hills on Tuesday, Los Angeles County Recorder spokeswoman Elizabeth Knox said.

Celebrity website TMZ.com said the couple, who reunited earlier this year, are planning a New Year’s Eve wedding.

Harris was Playboy magazine‘s Miss December 2009 and appeared on the July 2011 cover of the adult magazine with a “runaway bride” sticker covering her bottom half.

In what was described at the time only as a “change of heart,” Harris dumped the magazine mogul and left his Playboy Mansion five days before a lavish June 2011 wedding before 300 guests.

This time around, the couple are playing it low-key, staying mum on their busy Twitter accounts with Hefner’s spokeswoman declining to confirm or deny their plans.

Hefner, founder of the Playboy adult entertainment empire, has been married twice before. He and his second wife Kimberley Conrad, also a former Playmate, divorced in 2010 after a lengthy separation. His first marriage to Mildred Williams ended in divorce in 1959. He has two children from each marriage.

(Reporting By Jill Serjeant)

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