Apple today announced that "as part of its commitment to US economic growth" it will make the new Mac Pro, which it announced during WWDC in June, in the same Texas facility where it's made the previous-generation Mac Pro since 2013. The company's decision not to move the Mac Pro's production to China stems at least partly from a tax exemption granted by the U.S. government on September 20.
The company had previously requested a tariff exemption on some Mac Pro components, such as the system's power supply unit, that are manufactured in China. Apple CEO Tim Cook said in a July 30 earnings call that the company wanted to continue making the Mac Pro in Austin, Texas but didn't have the required capacity. The exemptions were supposed to allow it to make some parts in China but assemble the rest of the system in the U.S.
President Donald Trump said in July that Apple wouldn't receive those exemptions because he (and we're paraphrasing from his tweet on the matter) believed the company should make the Mac Pro in the U.S. instead of China. That is why Cook said the company sought the exemptions in the first place. But the president reversed course after meeting with Cook in August, and the exemption was granted just a few weeks after that meeting.
Apple explained in the announcement that "the US manufacturing of Mac Pro is made possible following a federal product exclusion Apple is receiving for certain necessary components." Cook also said in a statement that Apple "thank[s] the administration for their support in enabling this opportunity." He added that Apple products are "made up of parts from 36 states, supporting 450,000 jobs with US suppliers, and we're going to continue growing here."
Production on the new Mac Pro is expected to start in the Austin facility "soon." The company hasn't provided a release date for the system, saying only on its website that the device is "coming this fall," but potential buyers can sign up to be notified when it becomes available.
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Nathaniel Mott is a freelance news and features writer for Tom's Hardware US, covering breaking news, security, and the silliest aspects of the tech industry.
Tax exemptions seem to be given out like candy on Halloween. What companies actually pay taxes anymore? I find it frustrating to read stories about special tax treatment for large companies like Apple. This practice needs to be reigned in especially given the size of the national deficit and debt.Reply