Jun 28, 2019

Report: Apple plans to move Mac Pro production from U.S. to China

Photo: Brittany Hosea-Small/AFP/Getty Images

Apple is moving the production of its Mac Pro desktop from the U.S. to China even as trade tensions grow between the 2 countries, the Wall Street Journal reports.

Why it matters: The company has invested hundreds of millions of dollars into manufacturing the computer in the U.S., and that money will now be going to China, says the WSJ. An Apple spokesperson told the WSJ that all products are still designed and engineered in the U.S., and some components are U.S.-made.

The big picture: The WSJ reports that although the Mac Pro isn't one of Apple's biggest products, the decision has outsized importance. Its dependence on Chinese manufacturers has become a sore point with President Trump as his trade war with China continues. Trump's tariff threats against China could raise the cost of Apple's products, such as the iPhone.

  • Apple invested $100 million in Austin, Texas, in 2013 to manufacture the computer following backlash over outsourcing to China, per WSJ.
  • Within the last 2 years, Apple announced a second campus in Austin for customer support and operations, but not plans for new manufacturing plants in the U.S.

Details: WSJ says shipping costs will be lower for Apple because of the proximity of the Apple facility in Shanghai to their other suppliers in Asia.

Go deeper: Apple's Tim Cook meets with Trump as tariffs loom

Go deeper

Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 5 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.