iPhone Maker announced yesterday (February 24) that it represents Apple’s (AAPL)’s largest domestic spending commitment ever, it will invest $500 billion over the next five years to create at least 20,000 jobs in the U.S. manufacturing industry but will not affect Apple’s flagship consumer products, such as iPhone, iPad and Imac, are mainly assembled in Asia.
The news comes days after Apple CEO Tim Cook met with Donald Trump, who urged to return to domestic manufacturing. Shortly after the meeting, Trump hinted at Apple’s plans to announce that the company would invest “hundreds of billions” in the U.S., and the president thanked Cook in a post on his Truth Social Platform yesterday and Apple, he noted that Apple’s announcement represents “faith in what we are doing.”
This is not the first time Apple has invested a lot of domestic investment. It made a similar commitment in 2018, according to the leadership of the First Trump administration and Biden administration. However, the timing of the latest announcement with President Trump’s tariff threat could impact key aspects of Apple’s business, such as the iPhone.
While most of Apple’s products will continue to be produced overseas, the $500 billion investment will open a 250,000-square-foot manufacturing plant in Houston in 2026 to build servers for the company’s “Apple Intelligence” AI systems. The company also plans to double the value of funds dedicated to U.S. manufacturing, in addition to establishing a new manufacturing college in Detroit to help companies learn AI implementation and advanced manufacturing technologies.
“10% of politicians and 90% of CEOs”
Apple’s splash investment is not necessarily related to which party in the White House. During Trump’s first semester in 2018, the company committed $35.5 billion to the U.S. economy over the next five years. Like today’s announcement, the investment plans create 20,000 jobs and inject capital into Apple’s Manufacturing Fund. In 2021, under the Biden administration, Apple increased its commitment by 20% to $430 billion, again pledging to create 20,000 new jobs in the U.S.
However, not all Apple’s lofty goals are met. For example, its 2021 commitment includes plans to build a new Apple campus and engineering center in North Carolina’s Research Triangle. As Raleigh News & Observer reported, construction at the site was suspended last summer, which observer noted that Apple suspended the project to delay construction schedule.
Apple’s new domestic spending will largely serve as a previous commitment. However, this is in a period of time as the company wants to circumvent new tariffs on Chinese goods. Dan Ives of Wedbush Securities said in an analyst note that the commitment was a “strategic move” that it showed Cook as “10% of politicians and 90% of CEOs” . Ives added that the news could ensure that Apple’s “smoother water” is secured in the context of tariff threats.
“We are optimistic about the future of American innovation and we are honored to build our long-term investment with a $500 billion commitment to our country’s future $500 billion commitment.” “We will continue to work with this People and companies in the country work together to help write an extraordinary new chapter in the history of American innovation.”
