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Apple kicks off ‘Made in USA’ company program with $2,999 Mac Pro unit

By Peter Burrows
Bloomberg News

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Apple Inc. is taking orders today for the new Mac Pro personal computer, which is being built in Texas with components made domestically as part of Chief Executive Officer Tim Cook’s $100 million “Made in the USA” push.

“We have begun manufacturing the Mac Pro in Austin,” Cook wrote in a posting Wednesday on the social media website Twitter. “It’s the most powerful Mac ever.”

The cylindrical machine, which runs on Intel Corp.’s latest Xeon chip, will be available to order at a starting price of $2,999, Apple said.

While companies such as Google Inc. and Lenovo Group Ltd. are doing some final assembly in the United States of parts made overseas, Cook said in an interview in October that Apple is manufacturing — not just putting together — the Mac Pro’s metal parts in this country.

“The difference with us is that we’re taking a bottoms-up approach,” Cook said at the time. “We don’t want to just assemble the Mac Pro here, we want to make the whole thing here. This is a big deal.”

Apple’s partners are using industrial molds and production processes that were developed in the United States, he said.

Cook’s pledge to domesticate some production followed years of criticism from labor advocates about conditions at contractors’ facilities in China, where most of Apple’s products are built. Though Apple, the world’s largest technology company, hasn’t announced plans to make other products in the U.S., recent investments suggest it may head in that direction, including a new plant in Mesa, Ariz.

The newest version of the Mac Pro, a top-of-the-line computer used by graphic designers and filmmakers who require the fastest performance, is going on sale at the height of the holiday shopping season in customizable configurations starting at $2,999 and $3,999 depending on the chip’s power and amount of memory.

The sleek, rounded black machine, which looks like a space age trash can or a small jet engine, is 9.9 inches tall and is an eighth the size of the current Mac Pro.

Intel’s Xeon processors will let it handle some calculations at twice the speed of the existing model, Apple has said, and will use 70 percent less power because of its smaller size.

The computer comes with 256 gigabytes of flash-based storage, expandable to one terabyte — the equivalent of 1,000 gigabytes.

So far, the company’s push isn’t poised to have a big impact. Of Apple’s $170.9 billion in annual revenue, more than 70 percent of that comes from the iPhone and iPad tablet, which are built in China.

The new Mac Pro will probably contribute less than 1 percent of Apple’s sales in 2014, said Gene Munster, an analyst at Piper Jaffray Cos.

He predicts the company will sell 1.1 million Mac Pros in 2014, compared with 300 million iPhones and iPads.


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