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Bloomberg

Apple will manufacture its new Mac Pro computer in China, moving production of what had been its only major device assembled in the United States, according to a person familiar with the plan.
The company will use Quanta Computer to make the US$6,000 desktop computer and is ramping up production at a factory near Shanghai, according to the person, who asked not to be identified.
The Wall Street Journal reported the manufacturing move on Friday.
The news comes as China and the US are embroiled in a trade war, with the Trump administration having imposed billions of dollars in tariffs on Chinese-made goods, and threatening more tariffs that would hit Apple products.

Chinese President Xi Jinping and US President Donald Trump are expected to discuss the tariffs at a meeting on Saturday during the Group of 20 summit in Japan. Trump has called out Apple specifically in the past asking it to move more of its production from China to the US.
Apple shares fell less than 1 per cent to US$198.35 at 1.34pm in New York. The iPhone maker announced late on Thursday that Jony Ive, its chief designer associated with the company’s products including the smartphone, Mac computer and Apple Watch, would soon be leaving the company.
Iconic Apple design guru Ive is leaving to set up LoveFrom
“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,” Apple said in a statement.
“We’re proud to support manufacturing facilities in 30 US states and last year we spent US$60 billion with over 9,000 suppliers across the US. Our investment and innovation supports 2 million American jobs. Final assembly is only one part of the manufacturing process.”
By producing the Mac Pro at Quanta’s facility, which is close to other Apple suppliers around Asia, it will allow Apple to take advantage of lower shipping costs than if it shipped components to the US, the Journal said.

For the last Mac Pro introduced in 2013, Apple’s chief executive Tim Cook made a show of manufacturing the computer in Austin, Texas, as part of the company’s US$100 million Made-in-the-USA push. Apple said late last year it would invest US$1 billion to expand its operations there with a new employee campus.
But the Mac Pro caused production headaches, which slowed manufacturing and constrained Apple’s ability to make enough computers to meet demand.
Three years later, some Apple engineers raised the possibility of moving production back to Asia, where it was cheaper and manufacturers had the required skills for ambitious products, a person familiar with the discussions told Bloomberg at the time.
The Mac Pro is Apple’s lowest volume product, however the decision on where to make it comes at a particularly sensitive time. For more than a year, Apple has avoided major damage from the US trade war with China, thanks in part to a White House charm offensive by Cook.
Apple supplier shifts to Indonesia as Batam profits in US-China trade war
But the recent round of tariffs proposed by the US includes mobile phones, such as the iPhone, Apple’s most important product that is made almost entirely in China. Laptops and tablets may also be encumbered with the 25 per cent import levy.
Cook urged the Trump administration not to proceed with the latest round of tariffs, saying it would reduce the company’s contribution to the US economy.
Apple spent decades building one of the largest supply chains in the world. The company designs and sells most of its products in the US, but imports them from China after assembly.
That makes it one of the most exposed companies to tariffs. The company may also be evaluating moving some production out of China to elsewhere in Asia, according to a recent Nikkei report.


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Apple

Apple set to move production of new US$6,000 Mac Pro computer to China amid trade war

Apple is widely exposed to trade tariffs. Photo: AP

Apple CEO Tim Cook presents the new Mac Pro computer during Apple's Worldwide Developer Conference (WWDC) in San Jose, California on June 3, 2019. (Photo by Brittany Hosea-Small / AFP)

(FILES) In this file photo taken on September 7, 2016 the Apple logo is seen on the outside of Bill Graham Civic Auditorium in San Francisco, California. - Apple is warning the US administration that proposed tariffs on Chinese imports would be counterproductive, saying they would hurt the iPhone maker's competitiveness and "tilt the playing field" to non-American rivals. In comments filed this week to the US Trade Representative, Apple said the tariff proposal by President Donald Trump would hurt Apple's ability to compete and also end up reducing the tech giant's contributions to the US economy in taxes and investments.The Apple comments dated June 17, 2019 noted that the company is the largest US corporate taxpayer and also is on track to invest some $350 billion in the country over five years. (Photo by Josh Edelson / AFP)

Apple’s long-serving British design chief Ive is leaving tech giant to form his own company, LoveFrom

Jony Ive, chief design officer for Apple, left, and Tim Cook, chief executive officer, view a new iPhone during Apple's annual product event.Photo: Bloomberg

Apple supplier sets up shop in Indonesia as island of Batam profits from US-China trade war

PT SAT Nusapersada Tbk is an Indonesian electronics maker. Photo: Handout

Exterior of Pegatron Corp factor, Batam, Indonesia. 27JUN19 SCMP/Elaine Chan

Dormitory and living quarter area for workers, Batamindo Industrial Park, Batam, Indonesia. 27JUN19 SCMP/Elaine Chan

Batamindo Industrial Park is a 320 hectare (790 acre) industrial area on the Indonesian island of Batam. Photo: Elaine Chan

Will Apple CEO Tim Cook’s relationship with President Donald Trump be enough to protect the iPhone from China trade war?

Apple CEO Tim Cook. Photo: AFP

Logos of Apple, Huawei and Samsung are pictured on cell phones at a workshop of the Oxflo company, specialised in refurbishment of broken European smartphones which will be resold and provided with a warranty as part of an eco-responsible approach, in Lusignac, France, June 20, 2019. REUTERS/ Regis Duvignau

(FILES) In this file photo taken on September 22, 2017 an Apple logo is seen on the outside of an Apple store in San Francisco, California. - Apple is warning the US administration that proposed tariffs on Chinese imports would be counterproductive, saying they would hurt the iPhone maker's competitiveness and "tilt the playing field" to non-American rivals. In comments filed this week to the US Trade Representative, Apple said the tariff proposal by President Donald Trump would hurt Apple's ability to compete and also end up reducing the tech giant's contributions to the US economy in taxes and investments.The Apple comments dated June 17, 2019 noted that the company is the largest US corporate taxpayer and also is on track to invest some $350 billion in the country over five years. (Photo by Josh Edelson / AFP)

Apple and Fitbit among US tech companies pressing Trump administration to drop China tariffs plan

The next round of tariffs is expected to hit AirPods, Apple TVs and batteries and parts. Photo: EPA-EFE

FILE - In this Wednesday, March 6, 2019 file photo, President Donald Trump talks to Apple Inc. CEO Tim Cook during the American Workforce Policy Advisory Board's first meeting in the State Dining Room of the White House in Washington. To President Donald Trump, it was an awkward slip of the lip. To Apple CEO Tim Cook, it was an opportunity to poke some lighthearted fun at a president who has often clashed with the tech industry. A day after Trump mistakenly referred to Cook at a Wednesday White House meeting as "Tim Apple" - an understandable slip, perhaps, coming from the head of the Trump Organization - Cook quietly changed his Twitter account, replacing his last name with the Apple logo. (AP Photo/Manuel Balce Ceneta, File)

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Shift to Quanta Computer near Shanghai will allow firm to take advantage of lower shipping costs


Shift to Quanta Computer near Shanghai will allow firm to take advantage of lower shipping costs.


Apple set to move production of new US$6,000 Mac Pro computer to China amid trade war

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}Shift to Quanta Computer near Shanghai will allow firm to take advantage of lower shipping costs

Shift to Quanta Computer near Shanghai will allow firm to take advantage of lower shipping costs