Apple revealed a plan on Monday to spend $500 billion in the United States over the next four years, an announcement touted as the company's “largest-ever spend commitment.” But it may not be as impressive as it seems.
Andrew Ross Sorkin, co-anchor of CNBC’s "Squawk Box" and a financial columnist for The New York Times, described Apple’s monetary pledge as “squishy,” according to Mediaite — even as President Trump bragged on Truth Social that his administration's efforts led to it.
“APPLE HAS JUST ANNOUNCED A RECORD 500 BILLION DOLLAR INVESTMENT IN THE UNITED STATES OF AMERICA,” Trump posted on TruthSocial. “THE REASON, FAITH IN WHAT WE ARE DOING, WITHOUT WITCH, THEY WOULDN’T BE INVESTING TEN CENTS. THANK YOU TIM COOK AND APPLE!!!”
Apple said it plans to hire 20,000 people over the next four years as it expands chip and server manufacturing in the U.S. The investment includes a new advanced AI server manufacturing factory near Houston, an Apple Manufacturing Academy in Detroit, construction of a campus in the Los Angeles area and more. The company made a similar announcement in 2021, when it committed $430 billion and 20,000 new jobs over five years, Axios reported.
Sorkin pointed out on MSNBC’s "Morning Joe" that Apple likely highlighted its substantial dollar amount in an attempt to butter up the Trump administration for relief from tariffs. According to CNN, Apple relies on foreign imports, which include semiconductors and most of its iPhones, for its business. The company was granted exemptions from tariffs during Trump's first term.
“It is a bit of a down payment, potentially, on trying to get some relief from tariffs from the work that they’re doing in China later on,” Sorkin said.
Sorkin also emphasized that the investments Apple pledged are “not all new.” Between research and development for artificial intelligence technologies, to even the production of Apple TV+ films and shows, the company was likely slated to spend a substantial amount of money in the U.S. regardless of tariff policies or presidential administration.
“I wouldn’t say that Apple is doing this simply to placate the president or anybody else, they actually do need to be spending a large part of this money,” Sorkin said. “Of course, where they spend it was up for debate prior to this.”
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