Apple plans to add $350 billion to U.S. economy and create over 20,000 new jobs over next 5 years, pay $38 billion in repatriated taxes, the largest ever made

Apple today announced a new set of investments to build on its commitment to support the American economy and its workforce, concentrated in three areas where Apple has had the greatest impact on job creation: direct employment by Apple, spending and investment with Apple’s domestic suppliers and manufacturers, and fueling the fast-growing app economy which Apple created with iPhone and the App Store. Apple is already responsible for creating and supporting over 2 million jobs across the United States and expects to generate even more jobs as a result of the initiatives being announced today.

Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers — an estimated $55 billion for 2018 — Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.

Planned capital expenditures in the US, investments in American manufacturing over five years and a record tax payment upon repatriation of overseas profits will account for approximately $75 billion of Apple’s direct contribution.

Apple CEO Tim Cook and U.S. President Donald Trump at tech summit in June
Apple CEO Tim Cook and U.S. President Donald Trump at tech summit in June 2017
“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO, in a statement. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made.

Growing Apple’s US Operations

Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one. Apple already employs 84,000 people in all 50 states.

The company plans to establish an Apple campus in a new location, which will initially house technical support for customers. The location of this new facility will be announced later in the year.

Over $10 billion of Apple’s expanded capital expenditures will be investments in data centers across the US. Over the last decade, Apple has invested billions of dollars in data centers and co-located facilities in seven US states, including North Carolina, Oregon, Nevada, Arizona, and a recently announced project in Iowa.

Today, Apple is breaking ground on a new facility in downtown Reno, which will support its existing Nevada facilities.

All of Apple’s US facilities, including offices, retail stores and data centers, are powered by 100 percent renewable energy sources like solar, wind and micro-hydro power, which Apple generates or purchases from local projects. The new campus announced today will also be powered entirely by green energy.

Investing in Apple’s Domestic Suppliers and Manufacturing Partners

Building on the initial success of the Advanced Manufacturing Fund announced last spring, Apple is increasing the size of the fund from $1 billion to $5 billion. The fund was established to support innovation among American manufacturers and help others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky and rural Texas.

Apple works with over 9,000 American suppliers — large and small businesses in all 50 states — and each of Apple’s core products relies on parts or materials made in the US or provided by US-based suppliers.

Preparing Students for the App Economy

Apple, which has a 40-year history in education, also plans to accelerate its efforts across the US in support of coding education as well as programs focused on Science, Technology, Engineering, Arts and Math (STEAM).

The iOS app economy has created more than 1.6 million jobs in the US and generated $5 billion in revenue for American app developers in 2017. With demand for coding skills stronger than ever, today there are more than 500,000 unfilled programming-related positions across the country, and the US Bureau of Labor Statistics predicts that by 2020 there will be 1.4 million more software development jobs than applicants qualified to fill them.¹

To address the coding skills gap and help prepare more people for jobs in software development, Apple created a powerful yet easy-to-learn coding language called Swift, the free Swift Playgrounds app and a free curriculum, App Development (ADHLF) with Swift, which are available to anyone and are already being used by millions of students at K-12 schools, summer camps and leading community colleges across the country. Over 100,000 students and teachers have also attended coding classes at Apple retail stores.

Apple will expand these initiatives and add new programs to support teachers and teacher training. The company is also increasing funding for its ConnectED program, so students in historically underserved communities have a chance to learn app coding skills and enjoy other benefits of technology in the classroom.

¹According to code.org, there are currently 503,338 open computing jobs nationwide.

Source: Apple Inc.

MacDailyNews Take:
Boom!

SEE ALSO:
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U.S. sees strongest holiday sales since 2010 – January 12, 2018
Dow, S&P 500 and Nasdaq rocket to new all-time records – January 11, 2018
S&P 500 and Nasdaq rise to records on first trading day of 2018 – January 2, 2018
Apple makes Trump-friendly investment in Finisar – December 13, 2017
Apple is backing up iPhone X’s Face ID and AirPods with American jobs – December 13, 2017
How Apple and Finisar are transforming the future of Sherman, Texas – December 13, 2017
Apple awards $390 million to VCSEL-maker Finisar; award will create 500 high-skill jobs at Sherman, Texas facility – December 13, 2017
U.S. employment jumps more than expected in November, boosts U.S. stocks – December 8, 2017
U.S. third-quarter GDP revised to three-year high of 3.3% – November 29, 2017
Goldman Sachs sees U.S. unemployment rate hitting lowest level since the late-1960s – November 20, 2017
American consumer confidence soars to highest level since December 2000 – October 31, 2017
U.S. jobless claims plunge to lowest level since 1973 – October 19, 2017
U.S. economy picks up steam; second-quarter GDP up 3.0% reflecting robust consumer spending and strong business investment – August 30, 2017
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Corning shares boosted by Apple’s $200 million investment – May 15, 2017
Apple’s billion-dollar advanced manufacturing investment is a blueprint for U.S. job growth – May 4, 2017
Apple to invest $1 billion to promote manufacturing jobs in the U.S. – May 4, 2017
Apple’s top manufacturing partner to meet with U.S. President Trump today – April 27, 2017

56 Comments

      1. Could you please explain why this hurts you so, and or, why this is illogical, or surprises you so? I bet it goes way back to when Jimmy got a firetruck for his B-Day and you just got a cupcake? You’ve heard the saying, it takes $$ to make $$, right?

        1. )posted earlier on MDN, before this article was up):

          hate-the-richers, share-the-wealthers, trickle-down-flat earthers, read the other article at CNBC that states Apple plans to contribute $350 billion to the U.S. economy over the next five years. In another CNBC article, it’s reported that APPL will create 20,000 new jobs in the next five years as a result.
          For those inclined to conflate, confuse and combine statements because of their hatred of the Cheeto, Drumpf, or other juvenile adjectives used for the prez on MDN, whom I think acts like a juvi at times, I’m talking the “mechanics” of economics alone. Nor am not attributing these investment/job #’s to Don….so control yourself and focus, please.

          Is it reasonable to assume the tax cuts and repatriation is resulting in Apple’s move? Yes.
          Does this give credence to the position that the rich don’t just sit on their $$? Yes.
          Does this demonstrate that when the rich/wealthy have a pile of money or experience an infusion of $$ that a investment results and it typically is followed by job creation? Yes.
          Are the rich/wealthy largely responsible for the material level of job creation…20K being defined as a material level? Yes.
          Does mean the rich will likely get richer as a result of the cuts/infusion? Yes. Is this bad? Yes, to those that expect a direct infusion of this $$ into their back pockets.
          Does this give the “not-wealthy” the opportunity for success? Yes…esp if they live within/below their means.

          BJ, Jimmy, Roscoe and others that philosophically posit that the f’g rich need to give more…what more do you expect, need, want? Do these recent announcemnts support and epitomise the unfairness you proclaim? I thought the real drivers of the economy were the consumers? The chicken or the egg argument comes to light again…did you ever get a job from the non-wealthy, or from a poor man? We know the answer. Life is very unfair, I guess, but this news is good…even to those that have this “want” mindset.

          1. All reasonable, to a point…

            I repeat, why do corporations need incentive, in the form of tax breaks, from the government in order to hire people that will make them more money?

            This is exactly like the government writing them a post dated check.

            Simple as simple gets. Why? I think I know, but I want to know what you think.

            1. They don’t need incentive. They need money. The “tax break” gives them the money they can now use to invest.

              The government is not writing Apple a check, post dated or otherwise. The money that the Government is making available to Apple already belonged to Apple. The Government has merely removed the threat of taking it. Any money the Government has came from corporations and people who earned it in the first place.

              Why do you think the Government has the right to have the money that other people earn? Yes, society has joint interests that the people have agreed to administer through the Government. Overreach is easily achieved.

            2. If you’re suggesting we abolish all tax, then it’s a separate conversation. Not just corporate, but all.

              So if they “need money”, Apple and other companies don’t have money? Why won’t they do this program without the tax break? Why should the US citizen pay for it?

            3. We don’t need a separate conversation, because I didn’t suggest that we should abolish taxes. In fact, I explained WHY we need taxes.

              That’s right. Apple now has $250B more money than they did before the repatriation. They’ve pledged to spend $350B. That’s $100B more than has been made available by the Government’s actions. Apple wasn’t doing this program before the Government action because they didn’t have the $250B. I think that’s pretty obvious.

              As I pointed out before, US citizens aren’t paying for it. It was already Apple’s money.

              Oh by the way, the US citizens are going to derive the benefit of that $250B being spent by Apple. Again, I think that’s pretty obvious.

        2. Hate to say it BJ, but for Apple to make money it took Jobs and The Woz. As soon as Jobs left and a Corporate America guy stepped in the company went down hill.

          Then Jobs came back, pulled some bright guys together and Apple took off again. Bright guys like Jonny Ive and Tim Cook – far fro Trump’s type.

          And since you love trump so much maybe you can explain why all that brilliance led to 6 Bankruptcies. My concern, besides all the lying & groping, is that he’ll bring us down with him for # 7.

    1. And Apple won’t generate any money from all those employees? Is this a charitable contribution to hire them?
      Why do you need to be bribed to make money? Corporate welfare mothers is what you are. And the President is the most successful welfare mother in history.

      1. Your frothing-at-the-mouth hatred of the current president is consuming you. Please get some help. I’m not being sardonic; I’m merely offering an honest suggestion.

        If you automatically decry and deplore anything being done that benefits the US economy and education system simply because of your political beliefs, then you DO have some mental issue. Go get help.

        1. The US economy is and has been dependent on corporate welfare.
          It dictates domestic an foreign policy.
          Soldiers die to protect corporate interests.

          It’s the least I can do. What’s In It for you?

          At least I post under one name, who the hell are you today?

      2. “Corporate welfare?” Welfare is being given something you don’t have. Both the repatriation and recent tax cuts involve the Govt determining they aren’t going to take as much, or are going to return more of the original owner’s $$.
        And yes…Apple WILL generate money from the employees. You gotta be f’g kidding with this question! What do employees do of value…punch in/punch out and get paid?
        Companies/corps are in the biz to make $$…duh! People seek employment through this rich pigs–not charity…duh!
        Your statements/question show an extremely low level of business understanding and, or such a disdain for business in a capitalistic environment. Now, don’t conflate or confuse my last sentence with evil…just because I mentioned C A P I T A L I S M. Yes, there are skunks in the system, like all systems, but it works pretty darn well when laws are followed. I’ll say it for you, so your reply doesn’t. Fark the Cheeto, Drumft, Cheesehead, Mr. Orange, P_ssy Grabber. I think he’s a pretty strange guy, but I’m talking economics/business.

          1. The $$ was rerouted by someone that didn’t own it and you call it a “gift” to restore to the original state? I guess if you believe in the govt as omnipotent. “Thank you so much dear lord govt for leaving me some of my wages to buy bread…cuz you know everything and the best way for all.” Also, you presume the definition “debt” as it relates to taxes, to be a specific and correct number and you apparently think that Apple having not paid prior to repatriation was forsaking payment, or debt owned? Your conclusions are based on skewed logic and you presume things that aren’t law, nor are they concrete as presumed. Taxes are and have always been variable and relative. Thanks so much for the stars. They’re now on my forehead and I’m so proud.

            1. Why does any company need US government incentive to hire people to make more money? Why wouldn’t they “just do it”?

              These companies as well as citizens have an obligation to their home country. Part of that obligation is taxes. None of us like them, but if I were to use your logic then they have no right to the protection of the US military, to US funded research, to the Cops, or to any of the infrastructure. What do you think taxes are for anyway?

    1. By all means, lets look at the details. Well, there are none. Apple either announced this move hastily or it’s just a smoke screen people will forget over the next 5 years.

      1. Wow, I guess some people are reading challenged. Apple provided a lot of details, like the fact that they will spend $55 billion in 2018 alone buying parts from U.S. manufacturers. You know, like cover glass from Corning. $55 billion x 5 year is $275 billion just for buying parts. Add in continued investments in infrastructure and Apple will easily spend $350 billion pumping money into the U.S. economy. And Apple specifically said that $350 billion doesn’t include future corporate tax payments or taxes paid by employees. Try to get some brains before you comment.

      2. Apple has never given any “details” about what they are going to do and never will. This is not new and will never change. The only thing here is that these things were already scheduled and things that needs to done anyways. The only thing is that now Apple does not need to borrow the money for these. They can now use their own money for it. Also the money does not “move” to America. The only movement happens in the accounting and that´s it. Money stays there where it already is and is taken care by the Braeburn Capital.

  1. I’m surprised the stock hasn’t moved more on this announcement. Perhaps it was assumed they’d bring all the cash home and it’s already factored into the stock price? That’s ~$245B they’re bringing back I think. 😳

      1. Apple also said they will spend $55 billion in 2018 buying parts from U.S. manufactures. Even if that amount doesn’t increase year after year, you are looking at $275 billion in business for American purchase.

        In addition they increased their Advanced Manufacturing Fund from $1 billion to $5 billion. The fund injects money into U.S. manufactured to give them a competitive edge. Corning and Texas-based FNSR have so far received almost $800 million from the fund, and Apple is looking to spend way more.

        Add in a minimum if another $50 billion in corporate taxes that Apple will pay in corporate taxes in the next, Apple will single-handedly pump up the U.S. economy. That’s something all American should cheer.

        Unless you think rah-rahing for foreign companies like Samsung and Huawei is preferable.

  2. Wait just a doggone minute here!

    Lets talk about Trump being mentally ill, or that he is a racist, or that he cavorts with hookers, or that he colludes with the Russians, shall we?

    Why bother about how he is bringing America back to greatness again, like this latest announcement from Apple, of all companies.

    You whining losers out there, suck it up, swallow it down, you are a joke.

    TRUMP!

        1. Yes, the Constitution is a “liberal” document – in the sense of “classic” liberalism, which in fact is today’s conservatism.

          Today’s “liberalism” has no relationship whatsoever to classic liberalism, primarily because at its root it disconnects actions from consequences, and causes from effects – and yet still repeatedly performs actions based on that premise in order to correct the bad effects of the PREVIOUS actions based on those premises.

          “The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.” ― Alexis de Tocqueville

  3. Apple has not laid out how and where this $350 billion will be added to the economy over 5 years. Apple must have Trillions – all on the backs of slave labor.

    Only saying it plans on building another “campus” that will employ 20K US workers. Their campus in Texas only employs 6,000 workers. While Apple currently employs a total of 84K workers in the US. I can’t see Apple increasing their US workforce by about 24% with so many dropped balls like the Mac Pro, SIRI, a saturated iPhone market and missed opportunities such as the HomePod. The devil is in the details.

    1. to rationalize this/his reality. BJ, I don’t think that details and economics are your forte, so all you need to know is that Apple is infusing…that is bringing a Texas-like flood of $$ to rush into the economy. You may not like where/how AAPL is spending it, but it’s it’s going to find it’s way into people’s back pockets…if they position, train, and qualify themselves to receive it. Nope, sorry…this is not a pixie-dust delivery into the pockets of those with “want.” Btw, don’t you think Apple has the skill/right to determine how they appropriate THEIR $$, or should a Board be set up to determine a FAIR way?

      1. You, sir, are delusional.

        U.S. black unemployment rate falls to record low

        The Bureau of Labor Statistics reports 6.8 percent unemployment rate for black workers in December, the lowest in the 45 years the data has been tracked. In the 45 years the data has been tracked, the unemployment rate for black or African-American workers aged 16 years and older has never fallen below 7 percent until now.

        Shove your hatred of America up your ass, sideways.

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