Tim Cook, the CEO of Apple Inc. (NASDAQ:AAPL) pointed out specifically Texas to build its line of Mac Computers. Tim Cook vowed last year that the production of Mac will be started in the United States. The announcement was made by Cook in December last year.
In a statement in front of the Senate subcommittee in Washington D.C, Cook revealed that the facility of Texas will be utilised for manufacturing the Macs from Apple Inc. (NASDAQ:AAPL). Texas would have been the choice due to fewer taxes on products in the region.
Concentration in hedge fund portfolios has been rising throughout the year and approached a record high during the third quarter. In fact, the only time concentration was higher was during the fourth quarter of 2018. Hedge Funds Are Highly Convicted But With Minimal Crowding According to Goldman Sachs' Hedge Fund Trend Monitor for the third Read More
“We’re investing $100 million to build a Mac product line here in the U.S.,” said Cook, according to an AllThingsD report. The CEO of the iPhone making company said that the product will be assembled in Texas. The components from Illinois and Florida will be used along with the equipments manufactured in Kentucky and Michigan.
Apple Will Look for Partner
Apple Inc. (NASDAQ:AAPL) has for long chosen factories in China to take care of assembling its products. The Cupertino based company in the previous year declared that it will transfer some of its production capacity in the United States, but there was no word on the location.
The decision of Apple Inc. (NASDAQ:AAPL) to build Macs in the United States clearly does not reflect that the Smartphone giant will set up its own production plants. The CEO of the company made it clear that Apple will work in collaboration with partners in manufacturing and will materialize this plan. The guess works are likely to come to an end about who will be the manufacturing partner of Apple Inc. (NASDAQ:AAPL) after the Cupertino based iPhone maker has announced that Texas would be the destination.
Whom Will Apple trust in Texas
There is no clear information coming out from the house of Apple about the facility, which will manufacture and assemble the Apple Inc. (NASDAQ:AAPL)’s Made-in-USA Mac, but there are strong possibilities that the Foxconn facility of Texas might be the one.
The Foxconn facility is also located in Texas and has been the hub for the production and assembling of the many products of Apple Inc. (NASDAQ:AAPL). The company also announced that the manufacturing operations in the United States will be increased further to fulfill the needs of customers whose names the company did not disclose.
What Cook is Doing in D.C.
At present, Tim Cook is in Washington D.C. to prove wrong the accusation put by senators that Apple Inc. (NASDAQ:AAPL) uses subsidiaries in an effort to save on tax by not paying billions of dollars in Texas in the previous five years.