(Reuters) – Apple Inc’s (AAPL.(O) the shifting of production of its new Mac Pro desktop computer, go to China and the United States of america, the Wall Street Journal reported on Friday, citing people familiar with the matter.
FILE PHOTO: The logo of Apple is seen in a shop in zurich, Zurich, Switzerland, on January 3, 2019. REUTERS/Arnd Wiegmann
The move comes at a time when the Trumpet of the administration has threatened to impose new fees to cover almost all of the imports from China are under pressure from Apple and other manufacturers to get their products into the United States of america, if they want to avoid the fees.
Last week, Apple asked its suppliers to assess the impact on the cost of the move from 15% to 30% of their production to China, South east Asia, according to a Nikkei report.
“If it is true, it suggests to me that Apple has a lot of confidence in the united states and China will be in a position to solve the trade dispute, and to do so in the near future,” D. A. Davidson analyst Tom Forte said in an e-mail.
China is an important market for Apple as well as a major manufacturing center for appliances. The company has received nearly 18 per cent of the total turnover in China in the quarter that ended in Mar.
Apple’s Mac Pro, which is a $6,000 machine, it is used by creative professionals have been faced with a decreasing demand, the Journal said
The company does not break out sales of the Mac Pro machines. The office is part of the Mac family of products, which accounted for less than 10% of the company’s total revenue in 2018. In 2018, as Apple sold more than 18 million Mac products, in comparison with the approximately 218 million iPhones.
“As with all our products, the new Mac Pro is designed and engineered in California, and it has components from several different countries, including the United States,” an Apple spokesman said. Final assembly is only one part of the process.”
Apple’s decision coincides with the end of the tax subsidies it has received for the creation of a desktop in a facility in Texas that is owned and run by a contract manufacturer of Flex Ltd., according to the Journal.
“This should serve as a reminder of the fact that, in comparison with that of the united states, the production in China continues to be a lower-cost alternative, and the benefits of the existing infrastructure, versus the need, potentially, to the task of rebuilding the one in the U. S,” Forte said.
The tech giant has tapped the contractor Quanta Computer Inc (2382.T), for the manufacture of the computer, and the increase in the level of production in a factory near Shanghai, according to the report, here
Quanta did not respond to a request for comment.
Apple’s shares were down marginally at $198.69.
Reporting Akanksha Rana, Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D’silva