With the trade war going on between the US and China, Apple is going to assemble its new Mac Pro at China rather than the US. This has no doubt caused a lot of controversies within a few days of the confirmation news. The previous versions of MacBook used to be produced and assembled in the US but with the recent turn of events, it has been shifted to China.
The new Mac Pro is going to use Quanta Computer Inc. to make the desktop worth of 6000 USD. The company, where the desktop is going to be assembled is situated near Shanghai, according to certain reliable sources. The manufacturing decision has been earlier reported by The Wall Street Journal.
Due to the trade war, certain companies were told to prohibit providing any supplies to the Chinese companies, which has led to a huge loss for companies such as Huawei. Trump has already announced that huge tariffs to be imposed on Chinese goods, making it difficult for Chinese companies to grow their business in the US.
Earlier President Trump and President Xi Jinping of China were about to have a meeting based on the tariffs along with a group of 20 members in Japan on Saturday. US had earlier asked Apple to move its production business to the US instead of China and has even threatened to increase the tariffs.
Due to this trade war and the increase in tariffs, Apple has already lost 1% of its shares on Friday, according to the reports. Adding to that, the company has also announced that Jony Ive, the chief designer associated with iconic products would be leaving the company in the near future.
“Like all of our products, the new Mac Pro is designed and engineered in California and includes components from several countries including the United States. We’re proud to support manufacturing facilities in 30 U.S states and last year we spent 60 USD billion with over 9,000 suppliers across the U.S. Our investment and innovation support 2 million American jobs. Final assembly is only one part of the manufacturing process.” said Apple in its statement.
By producing the Mac Pro in Quanta, China, the company would be able to grasp more customers and would be able to deliver the products in the Asian countries with nominal shipping charges. The last Mac Pro, which was developed and produced in Texas, Austin had caused some problems as the shipping costs were higher due to which it was not available in bulk amounts in most of the countries.
The idea of producing the Mac Pro in Asian countries was suggested by the engineers of Apple company, with valid reasons of finding skilled people in the field along with low shipping charges. The issue was avoided for some time due to the trade war between the two countries but it has been decided that the Mac Pro would be produced in China.
With the trade tariffs increasing, it has been decided in the meeting that Apple’s products which are manufactured and produced in China would be charged with 25% import levy. Due to the increase in tariffs, the company has decided most of its production to other Asian countries other than China.