Apple Moving Mac Pro Assembly From Austin to China

[lcloo]

Apple Moving Mac Pro Assembly From Austin to China
Published Jun 28, 2019 at 1:58 PM

Apple will manufacture its new Mac Pro computer in China, shifting away from an Austin assembly line it had been using for that product in recent years, according to a report published Friday.

The company intends to assemble the new Mac Pro in a factory near Shanghai, according to The Wall Street Journal , which cited unidentified people familiar with the plan.

Apple issued a statement saying the new Mac Pro will be designed and engineered in California, but wouldn't say where it will be assembled.

"We're proud to support manufacturing facilities in 30 U.S. states and last year we spent $60 billion with over 9,000 suppliers across the U.S.," Apple said.

Unlike most other Apple products, the $6,000 Mac Pro isn't designed for the mass market. It's a high-end desktop computer designed for companies and people who have specialized needs.

Apple has been assembling Mac Pros in Austin since 2013 as part of a $100 million commitment that CEO Tim Cook trumpeted in a national television interview.

But the Austin factory, run by Flex Ltd., encountered problems finding enough skilled labor willing to work for minimum wage, according to the Journal. Then, as Mac Pro sales faltered, Flex began laying off workers in Austin, and by last year had a skeleton crew left in Austin, according to a former Flex vice president quoted by the Journal.

Flex didn't immediately respond to a request for comment Friday.

Apple is still spending $1 billion on a corporate campus in Austin in an expansion that is supposed to create at least 5,000 jobs.

Even so, moving Mac Pro assembly to China represents a retrenchment that underscores the challenges that Apple might face as it explores ways to avoid potential tariffs that the Trump administration may slap on the iPhone and other Apple devices already being made in China.

At the same time, Apple is scrambling for ways to insulate its product line from the trade war the Trump administration is waging with China. The Cupertino, California, company recently sent the Trump administration a warning that the U.S. economy and its ability to compete would be undermined if the iPhone and other products made in China are hit by the next round of potential tariffs.

Apple also is reportedly trying to figure out if it can move a significant portion of the manufacturing now being done in China to other countries in Asia.

 

[tower9]

This is surprising considering the great vulnerability of Apple in this trade war.

I think this is a demonstration of China's powerful attraction as an extremely efficient manufacturing machine.

 

[Brainsucker]

This is surprising considering the great vulnerability of Apple in this trade war.

I think this is a demonstration of China's powerful attraction as an extremely efficient manufacturing machine.

No. It means that Apple aim to sell Max Pro to China, while they want to target other countries for their older designs. Remember, companies tend to build their factories near their target market. To cut transportation costs and other irritating taxes and tariff.

 

[tower9]

No. It means that Apple aim to sell Max Pro to China, while they want to target other countries for their older designs. Remember, companies tend to build their factories near their target market. To cut transportation costs and other irritating taxes and tariff.

Are all of the units being produced there going to be sold in China though? I doubt it. I am sure a significant portion will be exported as well.

 

[Brainsucker]

Are all of the units being produced there going to be sold in China though? I doubt it. I am sure a significant portion will be exported as well.

Yes, I agree. But their main target would be China.

 

[tower9]

Yes, I agree. But their main target would be China.

Perhaps but Apple produces most of their products in China so this move is another reminder of China's crucial importance as their primary site of manufacture especially in light of the great tensions with the trade war.

 

[Brainsucker]

Perhaps but Apple produces most of their products in China so this move is another reminder of China's crucial importance as their primary site of manufacture especially in light of the great tensions with the trade war.

You know, at the beginning, those American Corporations built their factories in China not because they wanted to sell their wares to America. But to sell them in China. I still remember one of them said in the news that the secret to sell the wares to China was to build a factory in China. Because at that time, RMB value was way lower than today. So by building a factory in China, they could sell their products way cheaper than if they made in US.

 

[tower9]

You know, at the beginning, those American Corporations built their factories in China not because they wanted to sell their wares to America. But to sell them in China. I still remember one of them said in the news that the secret to sell the wares to China was to build a factory in China. Because at that time, RMB value was way lower than today. So by building a factory in China, they could sell their products way cheaper than if they made in US.

Depends on the company and the industry. When China first entered the WTO, many companies moved their manufacturing to China in order to cut costs and re-export back to the US or other Western countries.

 

[Viva_Viet]

Thats the problem of capitalist system, the rich ( Apple) will get richer while the poor ( US workers) lose jobs and get poorer.

US will collapse like Marx said if she cant destroy CN

 

[Brainsucker]

Depends on the company and the industry. When China first entered the WTO, many companies moved their manufacturing to China in order to cut costs and re-export back to the US or other Western countries.

Yes, I agree.

Thats the problem of capitalist system, the rich ( Apple) will get richer while the poor ( US workers) lose jobs and get poorer.

US will collapse like Marx said if she cant destroy CN

LOL. But I agree with you

 

[Zibago]

This is surprising considering the great vulnerability of Apple in this trade war.

I think this is a demonstration of China's powerful attraction as an extremely efficient manufacturing machine.

Apple is pandering to avoid a ban of apple sale in China

 

[GraveDigger388]

Thats the problem of capitalist system, the rich ( Apple) will get richer while the poor ( US workers) lose jobs and get poorer.

US will collapse like Marx said if she cant destroy CN

Aren't you something...