Apple is not budged by the trade war between USA and China. Reports suggest that Apple has shifted the production facilities of its up and coming Mac Pro computers to China.
Many experts are concerned over this move of Apple as both countries are engaged in a months-long trade war.
In the past, Apple employed Austin based contractor Flex to manufacture its computers.
Now Apple has moved its production facilities to China. The Cupertino tech giant will work with US-based Quanta computers to assemble the upcoming Macs.
If this happens, we can expect the next generation Mac Pro to cost a lot less than the current generation Mac Pro because even after the transportation cost, the manufacturing cost is much cheaper in China than USA.
What’s the reason behind the shift of production facilities to China amid trade wars?
As per reports of WSJ, the previous contractor Flex had a hard time finding skilled workers at minimum wages. Flex had to lay off workers to maintain operation after Mac Pro sales dipped the last year.
The contractor was left with limited resources which are not enough to fulfill the demands of Apple.
Future of Apple amid ongoing trade war
It’s not just Mac computers, but iPhone the new iPhones can get affected by this trade war.
Now, Apple has two choices either set up the production facility in the USA and delay the launch of Macs or move to another country.
Reportedly, Foxconn claims that if Apple wants them to shift out of China, it can do that in a few months. In a recent statement, Apple urged the U.S. government not to impose tariffs on its products.
G20 Summit: A ray of hope
Next move of Apple is relatively dependent on what comes out of the meeting between Trump and Xi Jinping at the G20 Summit.
Apple would like China and USA to resolve its issues and stop the trade war as it is hurting plans and financial of the company