Apple CEO Promised 3 New US Plants, Says President Trump: Report

Advertisement
By Agence France-Presse | Updated: 26 July 2017 09:40 IST
Highlights
  • Apple has promised to expand manufacturing in the US with 3 new plants
  • Cook in May announced the creation of an Apple fund
  • Apple has 80,000 employees in the US and plans to hire thousands more

The Wall Street Journal on Tuesday reported that US President Donald Trump said Apple has promised to expand manufacturing at home with three new US plants.

The Journal quoted Trump as saying that Apple chief executive Tim Cook committed to building "three big plants," in the United States.

Advertisement

No details were provided, and Apple did not respond to an AFP request for comment.

Cook in May announced the creation of an Apple fund to get more people in the US to do "advanced manufacturing," kicking it off with a billion dollars.

Advertisement

Apple building plants in the United States would come as rare common ground with Trump.

Cook has pointed out that Apple spent more than $50 billion (roughly Rs. 3,22,155 crores) in the United States last year - buying from suppliers such as Corning Glass, working with developers behind applications for the California company's devices and more.

Advertisement

Apple has about 80,000 employees in the US and plans to hire thousands more "in the future," according to Cook.

It is a sign of Apple's success but also a thorny problem: a cash stockpile topping a quarter of a trillion dollars, sparking debate on what do with such massive reserves.

Advertisement

The tech giant has resisted the idea of bringing the cash home, because the US tax code allows multinational firms to defer profits while they are held overseas but taxes income at up to 35 percent when repatriated.

Trump vowed while campaigning that he would force Apple to bring production to US soil.

Apple is not in the same position as automakers which relocated US factories overseas to cut costs, IHS manufacturing processes chief analyst Dan Panzica told AFP earlier this year. Apple never moved jobs offshore, it created them there.

"The Apple jobs were never here," Panzica said.

"The entire supply chain grew in China."

Apple benefits in Asia from a network that goes beyond subcontractors assembling smartphones, tablets or laptops. The firm relies on a dense ecosystem of companies that make components and spare parts for its devices as well.

China also offers sources of important raw materials, along with cheap, flexible and abundant labor to keep iPhone assembly lines cranking along.

It would be challenging to replicate that situation with US workers without using more robotics, undermining the political aim of creating jobs here, according to some analysts.

Moving iPhone manufacturing to the US would also likely push up costs, which is not in Apple's interests.

It was seen as more likely that Apple would make a symbolic move to appease Washington, such as investing more in making Mac Pro computers here, or in a facility for higher-priced, limited-edition devices such as an "anniversary edition iPhone" to mark the handset's 10th birthday this year.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Here's How the Oppo Find X10 Series Could Look
  2. Planning to Buy an iPhone 17? Apple Could Hike India Prices Soon
  3. Boat Nirvana Eutopia 2 ANC Launched in India With Up to 80 Hours of Battery Life
  4. Samsung Galaxy Z Fold 9 Ultra Could Inherit Rumoured Galaxy S27 Ultra Cameras
  5. Poco X8 Surfaces in New Regulatory Certifications
  6. New OTT Releases This Week: Musafir Cafe, Adarsh Baal Vidyalaya, and More
  7. Xiaomi Power Bank 5i 20000 67W With Built-In USB Type-C Cable Launched in India
  8. Android 17 Makes Switching From iPhone Easier With Expanded Data Transfer Support
  9. Poco F9 Ultra, Poco F9 Pro Spotted on Multiple Certification Sites Ahead of Launch
  10. iQOO Neo 11S Could Launch in August With 144Hz OLED Screen, 100W Charging
  1. Samsung Galaxy Z Fold 9 Ultra May Match Galaxy S27 Ultra With 200-Megapixel Camera, 5x Periscope Zoom
  2. Google Introduces Selfie Video Sign-In for Account Recovery
  3. Boat Nirvana Eutopia 2 ANC Launched in India With 45dB Hybrid ANC, Up to 80 Hours of Battery Life: Price, Features
  4. WhatsApp Could Replace Two-Step Verification PIN With a Stronger Password
  5. Oppo Find X10 Series Spotted Alongside iPhone 17 Pro in New Leak
  6. Microsoft Launches Xbox Backward Compatibility on PC With Four Original Xbox Games: Check System Requirements
  7. Vivo S2 Leak Reveals Expected Price and Storage Options Ahead of Rumoured India Launch
  8. New Redmi Note India Launch Appears Imminent After Official Teaser Goes Live; Could be Redmi Note 17
  9. Poco F9 Ultra, Poco F9 Pro Spotted on Multiple Certification Sites Ahead of Launch
  10. Google Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL Design, Colourways Reportedly Leak via Renders Ahead of Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.