Apple’s move to make new Mac Pros in the US a smart one: Loup Venture's Gene Munster
Apple (AAPL) announced Monday that it will make its new Mac Pros computers at its Austin, Texas facility, thanks to some tariff exemptions on components that are used to make the computers.
It’s a move that Loup Ventures Managing Partner Gene Munster says is important for investors to watch. ”Apple is doing an effective job at managing this balance between giving some things to the [Trump] administration and getting some things in terms of some breaks on the tariffs,” Munster said in an interview with Yahoo Finance’s On The Move.
“There was a view that Apple’s wearables division, which makes up 8% of its revenue, was going to be tariffed in September,” he said. Now “there has been some exemptions to that which have been granted to Apple, so those tariffs have been either completely eliminated or minimized.”
The Trump administration has been dangling the threat of tariffs of up to 25% on computers as part of the ongoing trade war with China. Over the summer the president tweeted that Apple would not receive a tariff exemption for Mac Pro parts, tweeting:
Apple’s decision to make Mac Pros in the U.S. comes ahead of the threat that its China-made iPhones could be hit with tariffs in December.
“I believe that this news means it meaningfully declines the probability that the iPhone will be tariffed in December,” Munster said. “I’m surprised the stock didn’t react more positively on this news.”
Bridgette Webb is a producer at Yahoo Finance. Follow her on Twitter @bridgetteAwebb.
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