Apple has shifted the manufacturing of its Mac Pro computer from the U.S. to China, a Friday report stated.
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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. 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.
Trump has already imposed 25 percent tariffs on $250 billion of Chinese goods and is threatening to tax an additional $300 billion worth, thereby extending his import taxes to just about everything China ships to the United States. China has retaliated by imposing tariffs on $110 billion in U.S. imports.
The Wall Street Journal reported the tech giant has tapped Quanta Computer Inc. to manufacture the computer, which costs an estimated $6,000. The location of the facility near Shanghai is close to other Apple suppliers which may cut shipping costs versus “shipping components to the U.S.,” the media outlet reported.
"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 spokesperson told FOX Business in a statement. "We’re proud to support manufacturing facilities in 30 US states and last year we spent $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.”
Since he was a presidential contender, Trump has called on Apple to make more devices in the U.S. In 2017, he told The Wall Street Journal that Apple CEO Tim Cook “promised to build three big plants, beautiful plants” in the U.S.
Apple announced plans recently to build a second facility in Austin, Texas, as well as $500 million in new contracts with American component suppliers. However, the tech giant has not announced any plans to create plants in the U.S.
Earlier this month, Cook said China has not targeted Apple amid the trade war.
“Well, it currently the Chinese have not targeted Apple at all. And I don't anticipate that happening, to be honest,” Cook told CBS News.
Reuters reported that Apple shares were down at $198.05 on Friday.
The Associated Press contributed to this report.