President Donald Trump announced on Wednesday that Apple (AAPL.O) will make an additional investment of $100 billion in the United States, a strategic move that could help the company avoid potential tariffs on iPhones. This new commitment elevates Apple's total domestic investment in the U.S. to an impressive $600 billion over the next four years. Earlier this year, the tech giant had already pledged to invest $500 billion and create 20,000 jobs across the nation during this period. The focus of this announcement is on bolstering Apple’s supply chain and advanced manufacturing in the U.S. However, it does not fully satisfy Trump’s insistence that the company start producing iPhones domestically. "Companies like Apple, they're coming home. They're all coming home," Trump stated to reporters in the Oval Office just after Apple CEO Tim Cook presented him with a U.S.-made souvenir featuring a 24-karat gold base. "This is a significant step toward the ultimate goal of ensuring that iPhones sold in America are also made in America," Trump added.
When asked if Apple could one day assemble entire iPhones in the U.S., Cook mentioned that many components—like semiconductors, glass, and Face ID modules—are already produced domestically. However, he indicated that final assembly would remain overseas "for a while."
While this investment pledge is certainly noteworthy, analysts point out that the figures are consistent with Apple’s usual spending habits and parallel commitments made during both the Biden administration and Trump's previous term.
In May, Trump threatened Apple with a 25% tariff on overseas-manufactured products, marking a departure from an earlier landscape where his administration had exempted smartphones, computers, and other electronics from various tariffs on Chinese imports. This shift in policy cost Apple approximately $800 million in the June quarter.
"Today is a good step in the right direction for Apple, and it helps mend bridges with Trump after what seems to have been a tense few months between the White House and the tech giant," remarked Daniel Ives, an analyst with Wedbush Securities.
Apple has a mixed history regarding its investment promises. In 2019, for example, Cook toured a Texas factory with Trump, suggesting it would serve as a new manufacturing site. However, this facility had already been producing Apple computers since 2013, and production has since shifted to Thailand. Currently, Apple manufactures the majority of its products, including iPhones and iPads, in Asia, predominantly in China, although some production has been relocated to Vietnam, Thailand, and India in recent years.
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