Apple makes $500 billion investment in the U.S.
Here's how Apple is betting on American innovation.
Transcript:
Conway Gittens: Half a trillion dollars. That’s the humungous size of the investment Apple has pledged to make in the United States over the next four years. The money will be used to create 20,000 jobs and expand Apple’s manufacturing exposure inside the U.S. Also part of the plan, a 250,000-square-foot factory in Texas, focused on building artificial intelligence servers.
In a statement issued by the company, CEO Tim Cook says “We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments.”
Related: Top analyst weighs in on Apple's massive U.S. spending surprise
The $500 billion commitment is also being seen as Cook’s way of limiting exposure to new tariffs on imported goods. The iPhone, which is Apple’s most important product, is largely made outside of the U.S. Apple already had plans to produce Mac Pro computers at a new manufacturing plant planned for Texas.
Some of Apple’s partners are investing in the U.S., as well. Chipmaker TSMC is building a factory in Arizona thanks to funding from the Chips Act passed under President Biden.
Apple doesn’t do much manufacturing itself, choosing instead to farm out that work to so-called contract manufacturers. So that $500 billion investment is actually going to be filtered through those manufacturing partners. Apple says the benefits will be spread throughout all 50 states.
Turning to markets now, stocks are struggling somewhat on this Monday following the worst week for the Dow all year. Shares of Domino’s Pizza are down after quarterly results from the pizza chain show difficulties connecting with budget-conscious U.S. consumers.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
