Deepwater’s Gene Munster – Apple (NASDAQ: AAPL) says Apple can save $11 billion a year after its $500 billion U.S. investment, Apple (NASDAQ: AAPL)

Deepwater Management‘ Gene Munster He has shared his insights on Apple’s recent announcement of a $500 billion investment.

what happened: On Tuesday, Munster introduced him to Apple AAPLDecided to increase its annual U.S. spending. He believes the technology giant will increase its annual investment by $39 billion, a 45% increase from its operating rate in 2021. However, Munster believes that actual incremental investment is close to $20 billion a year.

He also said Apple’s announcement highlighted its awareness that the AI-driven future requires substantial infrastructure investment. He estimates that 15% of the $19 billion incremental expenditure will be allocated to hiring 20,000 new employees, adding about $3 billion in annual employee expenses. The remaining 85% will likely invest in infrastructure, including expanding capacity in data centers and chip production for Apple Watch and iPad.

Munster’s third point highlights Apple’s strategic approach to bypassing tariffs by redirecting these savings to U.S. investments. He estimates that the U.S. accounts for about 35% of Apple’s total sales, with revenues of about $147 billion this year. Of this, about $120 billion comes from product sales, which could be affected by 10% tariffs. So by increasing its domestic investment, Apple could save at least $11 billion a year by avoiding tariffs. In short, tax avoidance covers half of the US announced $19 billion investment.

See: Trump confirms tariffs on Canada, Mexico will take effect as planned

Why it matters: CEO of Apple Tim CookNews of the announcement of the massive investment in the United States is widely regarded as a means to avoid the threat of tariffs. Tariffs have always been the main reason Apple is concerned about. Bank of America analyst Wamsi Mohan iPhone manufacturers have previously said that prices on iPhones, iPads and other products need to be increased by about 9% to offset the tariffs.

Meanwhile, the President Donald Trump Noted that the investment is the result of Apple’s confidence in his administration and policies.

In addition to Gene Munster, several other analysts have responded to the $500 billion investment from iPhone maker. UBS Analyst David Vogt Noting that “it lacks substance” and the famous short seller James Chanos Considering that Apple’s current capital base is less than $160 billion, it is called “unrealistic”. On the other hand, Wedbush’s Dan Ives “Apple made a smart strategic move on U.S. buildings with a $500 billion bet,” said the company.

Apple shares rose 0.66% to $247.17 on Monday.

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Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.