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Apple to Manufacture Computers in Texas to Dodge Chinese Fees

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Austin, Texas, is the would-be the site where Apple will manufacture its new generation Mac Pro desktops, as per the recent announcement by Apple. 

Most of Apple’s products are assembled in China and are under increased tariff threats. The Mac Pro is the first major Apple product line and computer to be constructed in the United States. 

The company confirmed that it has already received several federal product exclusions, enabling them to acquire some parts for the Mac Pro from outside the country without paying import duties. Apple also stated that the new Mac Pro models have over twice more American-made and sourced parts than their predecessors. 

Apple CEO Tim Cook thanks the Trump administration with their help and support in making this opportunity possible. He also said that the upcoming Mac Pro will be their most powerful computer ever, and they are adamant and excited about building it in Austin. 

Last July, President Trump commented that Apple will not be given tariff waivers of relief for parts that are made in China and that if they are made in the USA, there will be no tariffs. 

In response, Cook said that they would make the Mac Pro in the U.S. and that they are in discussion with the Trump administration about the problem. 

Trump, in a later statement, expressed happiness over the issue. “A man I have a lot of liking for and respect is Tim Cook, and we’ll work it out, I think they’re going to announce that they’re going to build a plant in Texas and if they do that I’m starting to get very happy.”

Over a call with analysts, Cook says that they want to continue this trend of manufacturing in the U.S. Apple is currently investing and working on the means to do so because the company wants to keep making Mac Pros in the U.S. 

The Mac Pro is a high-grade computer for programmers, artists, people who generally want a lot of power in their device. It is not a high-volume product for Apple, and they don’t reveal sales figures for the Mac Pro, but Mac computers and laptops make up for 10% of their revenue for the most recent quarter available. 

A previous version of the Mac Pro was assembled in Texas by the contact manufacturer Flex. The new version will also be manufactured at the same facility, albeit with a new design. 

However, Apple still has import duties for December 15 that would affect its major product lines, such as the iPhone, iPads, and Apple Watches.