Apple has planned to move the production of new Mac Pro from United States to China. The company’s latest Mac Pro computer would not be assembled in Austin, Texas, as in the case of its previous version.
Apple (AAPL) is said to tie-up with China’s Quanta Computer, near Shanghai. The move would help the iPhone maker to reduce costs related to transporting the components to the United States for the final stage of production, as it is located closer to Apple’s other factories.
The news came amid tensions between US and China. Apple faced the brunt of the ongoing trade war between the two countries, as China is also one of the biggest markets for products like its iPhone. In January, Apple missed earnings expectations for the first time in 16 years, majorly due to a drop in iPhone sales in China.
It is speculated that the manufacturing shift could upset US President Donald Trump, who has pressed Apple to move more of its production to the United States. Trump said during the 2016 campaign, “We’re going to get Apple to start building their damn computers and things in this country, instead of in other countries.”
Apple released a statement saying that assembly of product was just one step in a broad production process that created multiple jobs in different countries. The company said it had worked with factories in 30 states and had spent $60 billion with over 9,000 suppliers across the United States last year.
“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. Final assembly is only one part of the manufacturing process,” the statement said.
After facing the financial impact of the trade war, the company got another major hit with the announcement of its chief designer, Jony Ive, leaving the company.
The company’s shares dropped less than 1 percent to US$198.35 at 1.34pm in New York, after the announcement, late on Thursday, that Jony Ive, who designed company’s most remarkable products including the smartphone, Mac computer, and Apple Watch, would soon be exiting the company.