Apple’s top computer to be made in Austin
Apple’s top-of-the-line computer will be assembled in Austin, the company announced Monday, a manufacturing decision that got caught up in the trade war with China.
The Lone Star State can thank new tariff exemptions for Apple’s move. President Donald Trump has been pushing Apple, which makes the vast majority of its products in China, to build its products in the U.S. “Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!” he tweeted in July.
Over the weekend, the U.S. government approved Apple’s request for a waiver on 25 percent tariffs on 10 key components imported from China. The company was granted exclusions on several parts, including processors, power components and the computer’s casing. In a statement, Apple CEO Tim Cook thanked the administration for the exemption, which allows the company to assemble the computer inside the U.S.
“We believe deeply in the power of American innovation,” Cook said in the statement. “That’s why every Apple product is designed and engineered in the U.S., and made up of parts from 36 states, supporting 450,000 jobs with U.S. suppliers, and we’re going to continue growing here.”
Texas Gov. Greg Abbott said his state’s “economy is thriving as the tech and manufacturing sectors continue to expand. I am grateful for Apple’s commitment to creating jobs in Texas.”
The news is the latest twist in Apple’s trade war saga that has seen the company’s stock price fluctuate wildly with President Trump’s tweets about his negotiations with China. Many of Apple’s products, including its iPhone, are expected to see new restrictions this December, unless a deal with China is announced.
Cook has met frequently with U.S. government officials, including President Donald Trump, in an effort to ease the impact of the U.S.-China trade war on Apple’s business. Over the summer there were reports that Apple would move production of the Mac Pro to China to escape a widening list of tariffs on Chinese-made goods.
While some components will be exported to the U.S. for final assembly, Cupertino, California-based Apple said the new version includes 2.5 times the value of American-made parts as the previous model. The new Pro will include components made by more than 12 U.S. companies in states such as New York, Vermont and Arizona for distribution to U.S. customers, Apple said. The company didn’t specify whether this includes Mac Pros being sold outside the U.S.
While many of the key components in the Mac Pro still come from China, the move to the U.S. could be a public relations win for the president.
Still, the Mac Pro is a niche product compared to the iPhone, iPad, laptops and watches. The lowest end Mac Pro starts at around $6,000 and the high-end versions, with 28core processors, could run upwards of $35,000, about the price of a Tesla Model 3 electric car. That puts the computer far outside the price range of most consumers, making it a tool mostly for businesses that require vast computing power.
Compared with the previous version, the new model is far more customizable and integrates with a new high-resolution external monitor.
The new Mac Pro’s production will begin soon, Apple said, without specifying a launch timeline. The new model will be produced in the same factory in Austin operated by Flex Ltd. that has produced the previous Mac Pro since 2013, Apple said in a statement Monday. The previous version of the Mac Pro was recently discontinued.
Trump had previously signaled that relief from tariffs on the Mac Pro would be rejected, saying in a July 26 tweet that “Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!” However, the president later told reporters “we’ll work it out.”
While Apple did receive tariff relief for the 10 Mac Pro components, it has five other requests pending and hasn’t been spared from all duties. Products such as the Apple Watch, AirPods and iMac computers were hit by 15 percent tariffs earlier this month, while the iPhone, iPad and other major Apple products are set to be impacted later in December. Apple has maintained that its products are primarily designed in the U.S. and has grown its local investment since the trade war began brewing.