Apple CEO Tim Cook visits Austin, Texas, Mac Pro assembly plant in 201
In a short while to journalists gathered at the White House, Trump again asked Apple to build his products in The United States and said he believes the tech giant will announce the construction of a new facility in Texas, reports Reuters .
While the president has previously been lobbying pointing comments that encouraged Apple and other consumer electronics manufacturers to pull Chinese entrepreneurial manufacturing operations and put this work into US hands, today's comments claimed a more well-defined plan. In particular, it seems that Trump looks at Texas as a domestic equivalent to Shenzhen.
Trump failed to elaborate on the luck of Apple's supposed Texas facility, but the company maintains a great presence in the state. Beyond existing office space, Apple announced last year plans to expand with a $ 1 billion campus in Austin. However, it should be noted that the scope of existing and future facilities at this time is limited to research and development, operation, cloud computing and other non-manufacturing areas.
Apple's current Mac Pro is assembled in Austin by contract manufacturer Flextronics, but the newly announced successor will be built by Quanta Computer in a plant near Shanghai.
The transition to Quanta exposed the upcoming professional-level desk for tariffs set by the Trump administration, duties Apple is attempting to unite in a prayer to the White House. Apple's official request is pending review, but Trump on a Friday Friday opposed the request publicly.
"Apple will not be given customs waves [sic] or relief, for Mac Pro parts made in China," Trump said on Twitter. "Do them in the US, no tariffs!"
Having said that, it is unlikely that Apple will invest in US-based manufacturing facilities at any time. Despite the exciting tariffs that were introduced as part of the US-China commercial war, Chinese production is in many ways better than counterparts.
Compared to the United States, China offers relatively cheap, high quality and, perhaps most importantly, responsive labor. Apple manufacturing partners like Foxconn can distribute tens of thousands of workers at short notice, and operate production facilities around the clock to meet strict deadlines.
Apple CEO Tim Cook consistently views China's workforce and described at a recent economic development conference its capacity to build technologically advanced products as outstanding. Cook offered a more concise explanation of Apple's dependence on Chinese suppliers in a 2017 interview.
"The popular notion is that companies come to China because of low payroll costs. I'm not sure which part of China they go to, But the truth is that China stopped being the low labor country years ago, "Cook said. "It's not the reason to come to China from a supply point of view, the reason is because of the skill."
Whether or not Apple will – or can afford – transferring production states as a cost-saving measure remains unknown.