In a win-win situation for both parties, the White House has confirmed President Donald J. Trump’s visit to Apple’s Mac Pro factory located in Austin, Texas. While Apple can boast of administrative support from the White House, the Trump administration can be viewed as having an image of support to the American companies, going in Trump’s favor.
The Apple factory in Austin, which Trump would be visiting this Wednesday, is an automated manufacturing unit working as a pro workstation. Assembling the Mac Pro has been a preferred choice in the United States itself since the work requires less number of working staff. Most of the work at the plant is automated.
Earlier speculations went in favor of Apple outsourcing the production of Mac Pro to China due to the popularly known cheap labor. It is no hidden news that the U.S. government and Trump, in particular, have asked companies to refrain from indulging China in the production game while bringing production into the States, as much as possible.
Recently, the company had accomplished no less than a feat when it received tariff exemptions from trade regulators for computer parts. With that working as a boost in favor of the company, it shifted its assembly and manufacturing unit in Austin, Texas.
Trump’s tour has a lot in the package for Apple. They may exploit this golden opportunity to ask for exemptions and alter in tariffs. Given that the next round of tariffs to be imposed by the U.S. on China is likely to be made on 15 December, this would have an increase and upsurge in the prices of Apple’s products. The trade war has a lot to harm Apple’s working model, if not checked in place.
Apple’s handsets, laptops, watches, iPads, and many other devices in the Apple product range would see an increase in cost. This means an increase in competition from other global brands like Samsung, which have little to do with the U.S. import tariffs and hence would remain unaffected.
Apple employs about 130,000 people with an investment spanning $350 billion to the United States economy coupled with huge employment generation pan U.S. and abroad. This financial year, Apple has shared almost 70 per cent.
Though further details are yet to be revealed, Trump’s visit to Texas this Wednesday is a certainty. In all likelihood, both President Trump and Apple CEO Tim Cook would grace the establishment in Texas with their presence. Cook could probably have a talk towards an ease in tariffs, more so when he has already expressed displeasure over some key policies.
While Apple’s most computer and device parts and popular products are manufactured in China, as such, the Mac Pro does not bring in any huge revenue. But even then, the sanctioning of tariff exemptions for Mac Pro parts would mean an advantageous position in the United States indigenous industry.
Add to that, the laudatory position for the White House to be seen as a support system to domestic manufacturing units and employment generation. Moreover, Apple wants to maintain the cordial relationship it has had with Trump at all costs. Even CEO Tim Cook met and dined with the president recently at Trump golf club in New Jersey, according to sources.
This seems a carefully timed measure by Apple. While it sets ample opportunity of promotion for Trump, it also strengthens Tim Cook’s rapport with Donald Trump and his administration.