APPLE UNVEILS MASSIVE $500 BILLION INVESTMENT PLAN FOR THE US

Tue 25 February 2025:

Apple has revealed intentions to channel over $500 billion into the United States across the next four years, with initiatives to onboard 20,000 new employees and construct a server facility in Texas.

The announcement, made public on Monday, follows closely on the heels of President Donald Trump’s claim that Apple CEO Tim Cook assured him the company would relocate its manufacturing from Mexico to the US. According to Trump, this shift is motivated by a desire to sidestep tariff costs.

This commitment, alongside Monday’s investment reveal, coincides with Trump’s ongoing threats of tariffs that might increase the price of iPhones produced in China.

“We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment to our country’s future,” Cook said in a company blog post.

That $500bn includes everything from purchases from US suppliers for products like glass for its iPhones to US filming of television shows and movies for its Apple TV+ service. The company declined to say how much of the figure it was already planning to spend with its US supply base.

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The announcement is similar to one Apple made in early 2018 – during the first Trump administration – which promised to create 20,000 new jobs as part of a $350bn spend in the US. Trump was also mulling a tariff then that could have affected iPhones at the time, but he did not end up targeting those devices during his first administration.

“This [latest] pledge represents a political gesture towards the Trump administration,” said Gil Luria, analyst at financial services adviser DA Davidson, who estimated that Apple has already committed to spending more than $150bn per year in the US, including the cost of goods sold and capital expenditure.

“Even without growing that spend very much, they would only need three to four years to meet their obligation”, Luria said.

Apple also said an under-construction new factory in Houston, Texas – slated to open in 2026 – will produce servers to power Apple Intelligence, its suite of AI features that help draft emails and perform other tasks. The company claims this factory will create “thousands of jobs”.

Apple said it will work with Foxconn, formally known as Hon Hai Precision Industry, to build the Houston facility where it will assemble servers that go into data centres to power Apple Intelligence. Those servers are currently made outside of the US.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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