Apple Moves Mac Pro Production From US to China

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Sources familiar with the move told The Wall Street Journal of Apple's plans to shift production of the "only major device" that's assembled in the states to China. That also means the only major product Apple manufactured in the USA will be joining the rest of the company's lineup in being made overseas.

Last week, Apple asked its major suppliers to assess the cost implications of moving 15 per cent-30 per cent of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report.

The company has reportedly considered moving up to 30% of its production outside the country, but according to a report from The Wall Street Journal today, it's also planning to ditch the favor of China as the home of production for the new Mac Pro.

The Mac Pro model had been manufactured by contractor Flex in Austin, Texas, since 2013 as part of a $100 million commitment that CEO Tim Cook trumpeted in a national television interview.

"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", an Apple spokesman said.

Flex's Austin factory encountered problems finding enough skilled labor willing to work for minimum wage, according to the Journal.

Apple's new Mac Pro made its debut during this year's WWDC.

However, Apple has long attracted criticism for relying on China to manufacture its products.

Unlike iPhones, iPads and MacBooks, Apple's Mac Pro is not one of the tech giant's top-selling products, though at a $6,000 starting price, it is one of its most expensive.

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

Reuters reported that Apple shares were down at $198.05 on Friday.

"US tariffs would also weigh on Apple's global competitiveness", the letter states. The report comes ahead of President Trump's meeting with Chinese President Xi Jinping at the G20 Summit in Osaka, Japan, to seek a truce in their trade war and revive negotiations between the world's two largest economies.



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