The Reason Behind Apple’s Increasing Scope On Israel

Apple Inc. is known all over the world as an American brand. Surely, the company has dug deep roots in the US and still boasts the “Designed in California” slogan at the back of all its gadgets. However, now the company seems to be shifting its focus on Israel as its home base, leaving US to deal in a subsidiary manner of business.

But, there is no mystery as to why Apple is shifting its business from its beloved home to another country. According to credible sources, Israel is soon to become the hub for the designing and development of chips that Apple uses in all its technologies, including the world famous iPhone.

Speculations arose when Apple decided to hire recently unemployed workers of Texas Instruments, a local chip designing company shut down due to a financial meltdown. According to reports, Apple hired most of the workers of Texas Instruments after it dissolved, all of which specialize in the art of chip making. Apple reportedly also placed new posts in the job market regarding new positions in its semiconductor and silicon technology development.

Israel at night

To this effect, Apple CEO was seen travelling to the company’s future adopted parent with Johny Srouji, whose job description, according to Apple’s official website, is to lead the operations for customized silicon architecture development, further confirming the reports regarding Apple’s increasing interest in the region for the development of its highly powerful microprocessor chips.

Apple is expected to start the development of its new office spaces in the region soon. According to experts, the company offices would be able to accommodate from 600 to 1200 people, varying in size from region to region.

The company seems to be restructuring its administrative design at the same time Google Inc. is centralizing its organization structure in the European Union. Microsoft is also going through administrative changes under the leadership CEO Satya Nadella, who recently took over the company in a state of dismal innovation.

However, experts opine these structural changes are not interconnected, rather are moves that see the tech companies preparing themselves for the harsh times ahead in the ever increasing competition of the industry. Apple Inc.’s move to shift operations for chips in Israel has a backdrop of purely profit maximization motives, and also highlights Apple’s aim to be more innovative in the development of its microprocessor chips, analysts argue.

Apple Inc. is not the first company to settle in Israel for the purpose of research and development. Facebook, IBM, HP, and hundreds of others are already operating their R&D departments in the region due to its highly skilled workforce and slightly lower wage rates that these companies otherwise had to pay in the United States.

According to the Chairman of Semiconductor Club in Israel, Apple Inc.’s move is “becoming more and more independent on the chip level, where it once had to rely on external suppliers”. No comment has come from Apple Inc. yet on this matter.