Apple: US Investment and Job Creation $350 Billion Contribution to US Economy

[Jacki Treehorn]

https://www.businesswire.com/news/ho...0117005748/en/

Apple Accelerates US Investment and Job Creation
$350 Billion Contribution to US Economy Over Next Five Years

January 17, 2018 01:00 PM Eastern Standard Time
CUPERTINO, Calif.--(BUSINESS WIRE)--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® and the App Store®. 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.

“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”

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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™, the free Swift Playgrounds™ 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.

¹According 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.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple's Media Helpline at (408) 974-2042.

© 2018 Apple Inc. All rights reserved. Apple, iPhone, the App Store, Swift, Swift Playgrounds and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Contacts
Apple
Josh Rosenstock, 408-862-1142
jrosenstock@apple.com
Fred Sainz, 669-227-0492
sainz@apple.com


Basically Apple is bringing back to the US most of the money they had overseas and investing in building a new campus (location has not been released), building new data centers, and adding 20,000 jobs split between the new and the existing campuses. It won't be all at once estimated 55 billion in 2018, and 350 billion over the next five years. Will be interesting to see how this all plays out, and if other companies follow suit or not.

Apple also announced this today Apple Gives Employees $2,500 Bonuses After New Tax Law

[kasuke06]

oh look, more good news. Gonna be hard to be a dem and campaign negative against so much good news.

[Celista]

oh look, more good news. Gonna be hard to be a dem and campaign negative against so much good news.

Economic recovery happened due to the Obama administration. It started well before Trump took office.

Go ahead and email your pal Barack your thanks.

[Jacki Treehorn]

Where do you think the new campus will be built? I'm thinking someplace cheaper like Nevada or Texas. I read that the new campus would not focus on manufacturing, or R&D but more on customer support, so they wouldn't necessarily have to be in Silicon Valley.

[Gestopft]

I'll file this under "things that companies were able to or going to do already, but they want to cash in on some goodwill in hopes you'll forget about how much richer their shareholders and executives are going to get under this tax law" with all the others.

[kasuke06]

Economic recovery happened due to the Obama administration. It started well before Trump took office.

Go ahead and email your pal Barack your thanks.

yeah... not like this is directly related to the new tax cuts under trump or anything. oh wait, it's directly related to the new tax cuts reducing the choke-hold on business.

Opinion from the left: literally anything good that happens ever is what Barrack did, especially if it took place after he left, and even more especially if Trump had any hand in it, because we are literally incapable of seeing trump as anything other than cheeto hitler. Anything shitty that ever happens is trump, regardless of whether or not he had anything to do with it, and whether it's real or imagined. Trump is the literal devil/hitler/cheeto Cerberus-type final boss we must vanquish through any means necessary! Fuck democracy! Fuck due process! Anyone who doesn't parrot our views is a nazi!

[Blamblam41]

yeah... not like this is directly related to the new tax cuts under trump or anything. oh wait, it's directly related to the new tax cuts reducing the choke-hold on business.

Opinion from the left: literally anything good that happens ever is what Barrack did, especially if it took place after he left, and even more especially if Trump had any hand in it, because we are literally incapable of seeing trump as anything other than cheeto hitler. Anything shitty that ever happens is trump, regardless of whether or not he had anything to do with it, and whether it's real or imagined. Trump is the literal devil/hitler/cheeto Cerberus-type final boss we must vanquish through any means necessary! Fuck democracy! Fuck due process! Anyone who doesn't parrot our views is a nazi!

Considering the Right already alienated anyone that doesn't agree with no regulation on guns, business and banning of abortions and drugs and called them liberals.

I'm sorry, what are you bitching about exactly? That Barack saved the economy from the negligence of the housing and credit and auto industry and Republitards economic policy failures while you were in kindergarten? awwww.

[Karaoke]

Considering the Right already alienated anyone that doesn't agree with no regulation on guns, business and banning of abortions and drugs and called them liberals.

I'm sorry, what are you bitching about exactly? That Barack saved the economy from the negligence of the housing and credit and auto industry and Republitards economic policy failures while you were in kindergarten? awwww.

buuuuuuuuuuuuurn

/10char

[Gestopft]

yeah... not like this is directly related to the new tax cuts under trump or anything. oh wait, it's directly related to the new tax cuts reducing the choke-hold on business.

They're pretending as hard as they can this is because of the new tax bill, but this is something they a) almost certainly already had the capital for, and b) were probably going to do anyway. No responsible business says "we have more money, let's hire a bunch of people and build facilities that we don't actually need." Especially for a rich corporation such as Apple, whether or not they are expanding has little do do with their tax rate, but with whether or not expanding their business is deemed profitable. Capital expenditure is a function of demand, not supply.

Oh, and taxes don't put a "choke-hold" on businesses. You are aware that it's only profits that are taxed? So any money they want to spend on new facilities/workers isn't being taxed.

[oxymoronic]

You are aware that it's only profits that are taxed? So any money they want to spend on new facilities/workers isn't being taxed.

what is your point? money spent is money spent and less profit overall.

[Gestopft]

what is your point? money spent is money spent and less profit overall.

The point is that businesses are going to expand if they deem it profitable regardless of what the tax rate is.

[Mafic]

They're pretending as hard as they can this is because of the new tax bill, but this is something they a) almost certainly already had the capital for, and b) were probably going to do anyway. No responsible business says "we have more money, let's hire a bunch of people and build facilities that we don't actually need." Especially for a rich corporation such as Apple, whether or not they are expanding has little do do with their tax rate, but with whether or not expanding their business is deemed profitable. Capital expenditure is a function of demand, not supply.

Oh, and taxes don't put a "choke-hold" on businesses. You are aware that it's only profits that are taxed? So any money they want to spend on new facilities/workers isn't being taxed.

https://www.apple.com/newsroom/2018/...-job-creation/

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.

Why would Apple choose to repatriate now and not so much in the past?

Because the tax code was overhauled by the Trump Administration.

[Gestopft]

Why would Apple choose to repatriate now and not so much in the past?

Because the tax code was overhauled by the Trump Administration.

True. Most companies know that they can just wait for the GoP to be in office so that they get blow j...er, "tax holidays."

But you'll also notice the article says that the tax payment is part of the direct contribution to the economy, not that the repatriated profits are going to be used for those specific investment purposes. You'll also notice that it says "planned capital expenditures," i.e. things they were already going to do.

They're bringing back over 200 billion dollars, and announcing that they'll spend a whopping...30 billion. Which I'm sure they already had. Even assuming that overseas profit is what they are using for capital investment, what's happening with the other 85% of the repatriated profits?

[Deleted]

If you offer a good enough deal, production will return. The Trump administration did just that.

Nothing to do with Obama, who sat mostly idle for 8 years and only did the bare minimum.

[kamuimac]

oh look, more good news. Gonna be hard to be a dem and campaign negative against so much good news.

wait till net iphone will cost 5k $$$

- - - Updated - - -

If you offer a good enough deal, production will return. The Trump administration did just that.

Nothing to do with Obama, who sat mostly idle for 8 years and only did the bare minimum.

thats only half of truth - the other half is how much wages risen in china in last 20 years - atm specialised production worker (and that who apple needs in their assemply lines ) in china earn with ease >2000 $ a month. and it will only continiue to rise further - add to this shipping costs, insurance os shippenets etc etc and it builds up .

moving factories to bagladesh and india / pakistan was pointless too since its easy to predict that wages will jump up there too in next 10-20 years - moving back to US was only logical buisness choice especially that in poor parts of US people will gladly accept wage of 2k $ per month

this artickle is nothing but PR bs trying to hide real reasons why they return.

[Independent voter]

Apple to stash 94% of it's money overseas, mainly Ireland where the corporate tax rate is 12%.

Now that we've lowered our corporate tax rate from 35% to 24%.

And the EU made Apple pay a fine of $14 billion dollars for no reason.

It makes a lot more sense for Apple to move, and move its money, back to the US.

[Hooked]

Also California is about to lose a lot of high income taxpayers because they can no longer shift their tax burden from the state to the federal government. I live in California and I hope the state goes bankrupt.

[Tiwack]

I'll file this under "things that companies were able to or going to do already, but they want to cash in on some goodwill in hopes you'll forget about how much richer their shareholders and executives are going to get under this tax law" with all the others.

QFT

This is expected. Moving jobs is the new creating jobs.

[Gestopft]

I live in California and I hope the state goes bankrupt.

Why on Earth would you hope your own state goes bankrupt?

[Tiwack]

Why on Earth would you hope your own state goes bankrupt?

Clearly an illegal alien. Bad hombre! /s