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No, Apple is not opening a new production plant in Texas



  Donald Trump speaks at the Apple Mac Mac manufacturing facility in Austin, Texas.
Enlarge / Donald Trump speaks at the Apple Mac Mac manufacturing facility in Austin, Texas.

MANDEL NGAN / Getty [19659004] President Donald Trump visited Mac Pro's manufacturing facility in Apple, Austin, Texas on Wednesday with CEO Tim Cook.

"We see the beginning of a very powerful and important race," Trump said during his visit. “I want to see Apple factories in the United States. This is happening. ”

Trump repeated this topic in tweet after the tour. "Today I opened a major Apple manufacturing facility in Texas that will bring back high-paid jobs back to America," he wrote.

Trump neglected to mention a few key facts about this device. First, it is technically owned by a Flex vendor, not Apple itself. More importantly, it's not new. Apple has been building Mac Pro in the same place since 2013.

Apple opens new facility in Austin – 3 million square feet of office complex where Apple says its employees will perform various functions including "engineering, research and development" , operations, finance, sales, and customer support. " In the notes on Wednesday, Mac Pro's Cook offered as a $ 1 billion investment to create Apple's second largest headquarters after Apple's home base in Cupertino.

But this new device is not a factory. This will create a few high-paying jobs, but mostly jobs in areas such as engineering, finance and sales.

Customs relief has helped Apple stay in the US

Apple's decision to maintain Mac Pro production in the United States is followed by controversial negotiations with the Trump administration. In June, the story of the Wall Street Journal indicated that Apple was preparing to move Mac Pro production to China. The story Journal contained notes from an Apple spokesman who did not make plans to move the dispute to China. Instead, the spokesman stressed that "final assembly is only one part of the manufacturing process."

Apple was looking behind the scenes for customs relief that would make it easier to build Mac Pro in the United States. In China, several key Mac Pro components were manufactured and Apple would pay for them if they sent these parts for assembly in the US.

Donald Trump chose a hard line in the July tweet question. "Apple will not receive duty relief or relief for Mac Pro parts manufactured in China," he wrote. "Make them in the US, no tariffs!"

But then in September, Apple announced that it would continue to produce Mac Pro in Austin – and the company attributed the Trump report for this shift.

"Manufacturing Mac Pro in the US is possible after excluding federal products that Apple accepts for certain necessary components," Apple wrote in its September announcement. Despite threats to Trump, its administration granted 10 out of 15 Apple's requests for exemption from Trump's 25% duty on imports from China.


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