Apple will spend more than $500 billion in the U.S. over the next four years

Good news. Now need engineers.

 

Art of the Deal?

 

https://www.barrons.com/articles/apple-stock-iphone-investment-trump-721fb764

 

Agree, hopefully they continue to invest in US.

“Apple today announced an acceleration of its US investments, with plans to make new contributions of more than $430 billion and add 20,000 new jobs across the country over the next five years”
April 2021


Apple commits $430 billion in US investments over five years

 

Time to expedite all of those H1-B applications

 

That photo looks completely fake.

 

And set aside some money for the anti-suicide nets at the new American Foxconns

 

Perfect timing. Apple wants to create high tech jobs while Trump is gutting science funding? NSF funding to be reduced by 2/3. My daughter, graduated from UF summa cum laude and working on her PhD at GaTech by way of an NSF award, believes her award will get cut. She said several of her peers have already lost their PhD funding. Thanks Trump.

 

While it's good news and I'm sure that Trump will take credit for the decision, I suspect that the decision to spend a good part of the $500 billion was made before Trump even took office. The $500 billion also includes the production of content for Apple TV+ money that would have been invested in the US under any circumstances.

 

AppleTV+ production budgets wouldn’t be nearly $500 Billion over 5 years. It’s supposedly $4-6B right now, so even if they ramped that up substantially hard to imagine it’s more than ~$50 billion of the total.

I agree there’s always a catch to these announcement, but TV production probably isn’t it.

 

thats good since I dont subscribe to apple tv anyways

 

Even 10% of the $500 billion is not insignificant and while the announcement is indeed good news the chances are that Apple would have invested a great deal of the total anyway. Although I'm sure that Trump, his supporters and maybe even Tom Cooke (aka Tim Apple) will try to create the impression that the decision was motivated primarily by Trump's threat of tariffs.

 

Hint: Apple is already spending $Tens of Billions in low cost India. This farce is NEVER going to happen unless President Musk is successful in totally eliminating corporate taxes, the EPA and NLRB.

 

this. looking at their financials, there is no way in hell they invest that much anytime in the next decade unless the dividend return totally stops and that isn't happening. another faux number, sad to see Apple pimp themselves out like this

it seems that apple has committed to a total of $930B.....hmmm, straight face test says......hmmmmmm.... nope..I suspect this is incremental increase for long term (20 year) expenditures. started at $350, went to 4430, added another $70B.

$70B doesn't sound as BIGLY as $500B and the rubes will believe whatever they are told so go with BIGLY

Apple’s $500 billion US investment looks ‘completely unrealistic’ | Fortune
But in a note to investors, UBS analyst David Vogt said “call us a skeptic… we believe it lacks substance,” referring to the announcement and large headline figure, citing multiple reasons. For one, only 10% of Apple’s supply chain is in the U.S., and the rest is throughout Asia, he told Fortune, and it’s probably taken the company close to a decade to make that 10% happen.
His note also points to other parts of the investment plan that don’t quite add up. He estimated that the addition of 20,000 employees would translate to just $5 billion in extra operating expenses per year.

Plus, Apple only spends about $10 billion a year on data center capital expenditures, per the UBS note, and it only generates about $100 billion a year in free cash flow, of which $90 billion goes to share buybacks, he said.

Given that Apple’s current $10 billion in capex is just a fraction of the $125 billion a year that the new U.S. investment would require, Vogt questions where the additional money will come from, adding that he doesn’t believe Apple will slash its buybacks.
So $500 billion over the next four years is “completely unrealistic mechanically,” Vogt told Fortune, adding later, “it’s unclear where the cash flow comes to try to even remotely attempt this.”

Vogt would not comment on why Cook is doing this. But Apple has announced similar investments before: a $350 billion contribution to the U.S. economy in 2018 during Trump’s first term, and an acceleration of that amounting to $430 billion, which was announced in 2021 during the Biden administration.

 

$430B of it to be precise

 

So I guess we’ve found “the catch”.

It’s not a CAPEX figure, it’s a “total contribution to the economy” figure.

 

and total contribution went up $70B, not $500B, and I can't find a timeframe it is supposed to occur over but maybe I'm missing it.

forget about the reality, flash the splash and move on