Posted on 01/17/2018 10:56:32 AM PST by Red Badger
Apple said it will "contribute" $350 billion in the US economy over the next 5 years. It will include the creation of 20,000 new jobs and a new campus. Apple expects tax repatriation payments of about $38 billion.
Apple CEO Tim Cook (R) and Apple chief design officer Jonathan Ive (L) look at the new Apple iPhone X during an Apple special event at the Steve Jobs Theatre on the Apple Park campus on September 12, 2017 in Cupertino, California. Apple to create 20,000 jobs over the next 5 years 36 Mins Ago | 01:21
Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy.
The headline from Apple is that it will "contribute" $350 billion to the U.S. economy over the next five years, although it's unclear exactly how the company came to that number.
But the company promised to create 20,000 new jobs and a new campus thanks, in part, to the prospect of tax reform.
It anticipates a $38 billion tax bill for repatriated cash, as a result of the new tax bill. This implies it will bring back virtually all of its $250 billion in overseas cash.
Apple also said it would spend over $30 billion in capital expenditures over the next five years. About $10 billion in capital expenditures will be investments in U.S. data centers, the company said.
Apple added it will spend $5 billion as part of an innovation fund, up from the $1 billion previously announced CNBC's "Mad Money."
The job creation will focus on direct employment, but also suppliers and its app business, which it had already planned to grow substantially (app developers earned $26.5 billion in 2017.) The new campus will focus on customer support.
Wednesday's announcement indicates that Apple will still have hundreds of billions of dollars in cash. It could spend that money on buybacks, dividends or acquisitions or moonshot projects.
The announcement raises the bar for the world's most valuable company — now a huge driver of the economy — to continue its dominance and growth in the wake of political pressure on big tech companies. The plan calls for Apple to keep up 2018's $55 billion "supercycle" spending rate with domestic suppliers and manufacturers.
"We have a deep sense of responsibility to give back to our country and the people who help make our success possible," chief executive Tim Cook said in a statement.
In 2016, then president-elect Donald Trump publicly called out Apple's reliance on its Chinese supply chain, telling The New York Times that he would "get Apple to build a big plant in the United States, or many big plants in the United States."
Apple shares were up about half a percent after the announcement, adding about $5.6 billion to the company's market capitalization after the stock opened Wednesday's trading session down 0.3 percent.
Here's the full release:
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(R) and the App Store(R). 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 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. "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(TM), the free Swift Playgrounds(TM) app and a free curriculum, App Development 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.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple's four software platforms -- iOS, macOS, watchOS and tvOS -- provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple's more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
(1)According to code.org, there are currently 503,338 open computing jobs nationwide. This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about Apple's plans for future investments and expansion, taxes, Apple's plans for managing its cash balances, and repatriation of overseas cash. These statements involve risks and uncertainties, and actual results may differ. More information regarding potential risks and other factors that could affect Apple's financial results is included in Apple's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Apple's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Apple assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
This is breaking news. Please check back for updates.
Ping!..................
Oh man! So much winning! I am almost tired winning!!
This must be horrible for the economy. Liberals predicted this type of horror. I expect the poor and the children will be most severely affected.
No mention of them donating $33 million to a scholarship for illegal aliens. That’s reassuring.
20k jobs? Peanuts. Move all production back to the USA and we will talk.
More of Nancy’s crumbs...
this is going to really really piss off liberals..!
isn’t that funny?
they used to barrage us with homeless updates but now they have to deal with this..!
how do you like them apples..?
Yeah, but how much does the President weigh? THAT is the important thing.
--B. Obama, 2016
20k Jobs? Peanuts. Move all production back to the USA and we will talk.
****************************
So, we’re hearing from the Peanut Gallery.
Let me know when Samsung repatriates all their overseas profits back to the USA. Oh, that’s right...they’re not an American company but are, instead, a Korean company and they take their profits and wealth back to Korea. I’m glad that most FReepers are smart enough to know that 20,000 new high paying jobs in the US is nothing to sneeze at.
By the way, how many new American jobs are YOU creating.
It’s peanuts.
Tell Pelosi, that Apple will bringing more crumbs to dinner!
The jobs YOU are creating are peanuts?
Now which state will they land in....
NO NO this can’t be..Commie media leftists said that Trump’s tax plan would kill us all
Oh and does he have dentures..you forgot about the dentures
Wow Potsy what a come back.
I understand that you’re wearying of winning and get distressed when hearing about another 20k new high-paying jobs.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.