Oct 4, 2019
In what looks like another trade-deal victory for the Trump
Administration, Apple announced on Monday that it would manufacture
its Mac Pro Desktop at a factory in Austin, Texas.
After the US government approved tariff waivers on 10 key
components for the Mac Book Pro that the company sources from
China.
"Manufacturing of the new model was made possible after the US
government approved on Friday Apple’s request for a waiver on 25%
tariffs on 10 key components imported from China."
Some analysts have warned that key components will still be made in
China and exported to the US for final assembly in Austin, but the
number of components for the new desktop increased by 2.5 times
from the previous model.
In an interesting about-face for Trump, the president had
previously signaled that he wouldn't grant the waivers, but has
apparently decided to cave. We imagine the softening in his
approach is related to the tit-for-tat pre-trade-talk detente going
on new between Washington and Beijing.
Trump had previously signaled that relief from tariffs on the Mac
Pro would be rejected, saying in a July 26 tweet that “Apple will
not be given Tariff waiver, or relief for." Mac Pro parts that are
made in China. Make them in the USA, no Tariffs!" However, the
president later told reporters that the two families “we’ll work it
out.”
Still, with five other requests pending before the DoC, Apple has
plenty of reason to be anxious. So far, Cook has been spared from
most duties. But products such as the Apple Watch, AirPods and iMac
computers were hit by 15% tariffs earlier this month, while the
iPhone, iPad and other major Apple products are set to be impacted
later in December.
Apple said construction for the new desktop will begin "soon,"
which roughly equates to: "Before the holiday shopping season
ends." Meanwhile, the revamped model was announced in June at the
company’s annual conference for developers, with a starting price
of $6,000. Compared with the previous version, the new model is far
more customizable and integrates with a new high-resolution
external monitor.
TG Watkins was first exposed to the stock market when his dad
brought him to a two day seminar when he was just 12 years old.