Apple Wants to Make Mac Pro Computers in the US, Needs Tariff Relief: Cook

Apple Chief Executive Tim Cook on Tuesday said that the desire to keep Mac Pro computer production in United States was behind the company's recent request for tariff exclusions.

"We want to continue to be here," he told analysts on a post-earnings call, adding that the company is investing in capacity to manufacture $6,000 (roughly Rs. 4.1 lakhs) Mac Pros in the United States.

On July 18, Apple had asked the US Trade Representative's office to waive 25 percent tariffs on 15 parts, including ones for the Mac Pro desktop computer. The public comment period for those requests closes on August 1.

The Wall Street Journal reported in June that Apple is shifting manufacturing of its new Mac Pro desktop computer to China from Texas.

Last week, US President Donald Trump said his administration would not grant Apple any relief for tariffs on parts made in China for Mac Pro, later adding that he thought the firm would build a plant in Texas.

In its earnings report, Apple said iPhone sales dropped to less than half of quarterly revenue for the first time in seven years. Cook on Tuesday described the change as successfully diversifying away from a single product and forecast results above Wall Street targets.

That strategy proved especially useful in China, the world's largest smartphone market. Investors feared a drumbeat of negative shipment data from the Chinese government and analysts meant problems for the iPhone maker.

Apple's greater China sales, which had gone into a near free-fall earlier this year, dipped only slightly, assuaging concerns that trade tension were undermining Apple's standing in one of its most important markets.

© Thomson Reuters 2019