Enter Here to Win a MacBook Pro, iPad Pro and More.

Apple to Boost Job Creation by Investing $350B in U.S. Economy

Apple to Boost Job Creation by Investing $350B in U.S. Economy Credit: Apple
Text Size
- +

Apple has committed to invest more than $350 billion into the U.S. economy over the next five years, the company announced in a press release Tuesday.

The Cupertino tech giant’s investments will focus on three major areas: direct employment by Apple at its various facilities and services, spending and investment with domestic supply and manufacturing partners, and fueling the ever-growing App Store economy.

“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,” Apple CEO Tim Cook said. “We have a deep sense of responsibility to give back to our country and the people who make our success possible.”

About $75 billion of the total will come from capital expenditures, direct investments in manufacturing, and repatriation tax payments. Presumably, the rest of the $350 billion is the result of normal growth and spending by a company as massive as Apple.

“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 U.S. economy,” Cook said.

Capital Expenditures

Apple plans to invest $30 billion in capital expenditures in the country and create 20,000 new jobs at its own company over the next five years. That includes hiring new employees at existing campuses, as well as opening a new one. That new campus will house “technical support” staff, and its location will be announced next year.

It’s also allotting $10 billion of its capital expenditures to focus on investments in U.S.-based data centers — and Apple added that it is currently breaking ground on a new facility in downtown Reno, Nevada.

Domestic Suppliers

The company is also increasing the size of its Advanced Manufacturing Fund, which it announced last year, from $1 billion to $5 billion. That cash will go toward fostering U.S. manufacturing, including several new projects in Kentucky and Texas with U.S.-based partners.

Cupertino said that it works with over 9,000 American supply partners across all 50 states, and added that each of its core products “relies” on components and materials made in the U.S. or delivered via U.S. suppliers.

App Economy

Apple has long said that it is responsible for creating and supporting over 2 million new jobs across the U.S., particularly as a result of the app economy it helped create. Today, it estimates that roughly 1.6 million jobs have been created due to the iOS App Store.

As part of its app economy ambitions, Apple also committed to “accelerating” its STEM and coding education support efforts across the U.S., including an increase in funding for tech and coding students in underserved communities via its ConnectED program.

Tax Repatriation

Per recent changes to the tax law late last year, Apple — which notes that it is already the largest U.S. taxpayer — estimates repatriation payments of about $38 billion. A payment of that size, the company adds, would likely be the largest payment of its kind ever made. In addition, Apple will bring about $252 billion in cash back into the U.S.

Read Next:

Related:

#Advanced Manufacturing Fund #Economy

Recommended

Comments