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| During Donald Trump's first term, Apple CEO Tim Cook built a relationship with the president, in part via photo opportunities like this tour of a Texas plant that made Apple computers in 2019. MANDEL NGAN/AFP via Getty Images |
Apple has just announced an additional $100 billion investment in U.S. manufacturing facilities, expanding on a previously stated $500 billion commitment. But while the figure is headline-grabbing, the fine print reveals a more nuanced story.
At a White House event on Wednesday, Apple CEO Tim Cook stood beside former President Donald Trump to unveil the new pledge. The timing and optics invite questions: Is this a tangible plan with real financial commitments? A politically strategic gesture aimed at pleasing Trump’s reshoring agenda? Or a calculated move to protect Apple’s interests in the face of mounting tariff pressure?
The answer is all of the above.
Some Important Context
Back in February, Apple committed to investing $500 billion and hiring 20,000 new employees in the U.S. over the next four years. This new $100 billion pledge brings the total to $600 billion. At Wednesday’s event, Apple revealed some details, including a $2.5 billion investment to expand operations at a Corning facility in Kentucky, which manufactures glass for iPhones and Apple Watches.
Apple also claimed this expansion would eventually ensure that all Apple devices worldwide use glass made in the U.S., though it didn’t clarify how much of that process already occurs domestically.
Notably, this isn’t Apple’s first domestic investment announcement. In 2021, during President Joe Biden’s administration, the company revealed a $430 billion five-year U.S. investment plan, which included projects such as a new engineering hub in North Carolina and a $1 billion campus in Austin, Texas some of which were already under development when the announcement was made.
A Closer Look at the Math
As Bloomberg pointed out, Apple’s February announcement was essentially an acceleration of its previous plans. That commitment translated to about $39 billion in new annual spending and the addition of 1,000 new employees each year. Wednesday’s update appears to increase that by another $25 billion annually. While Apple didn’t specify further hiring plans, it did state that the Corning expansion would boost its workforce there by 50%.
So, yes Apple is spending more.
Will This Lead to iPhones Made in America?
But does this mean Apple is finally going to manufacture iPhones in the U.S., as Trump has frequently demanded?
In short: no.
Recreating Apple’s intricate, globally distributed supply chain domestically is nearly impossible certainly not something that could be done in just a few years, even if Apple had the desire to do so. Cook addressed the question directly at the press conference, pointing to the increased use of U.S.-made components like glass. However, when it came to final assembly the step that requires complex logistics and labor-intensive operations he was candid: “That will be elsewhere for a while.”
Nonetheless, the moment served Trump well. Appearing next to the CEO of one of the world’s most valuable companies as he touts American investment is politically valuable, especially amid Trump’s ongoing push for domestic manufacturing. He smiled proudly throughout the event.
It's also worth noting that Trump isn’t known for precision when it comes to numbers. For instance, he recently claimed he would reduce drug prices by “1,500 percent,” which is mathematically impossible. His flexibility extends to business announcements too such as when he inaccurately claimed during his first term that Apple had opened a new plant in Texas specifically at his request.
What’s in It for Apple?
So, why is Apple doing this?
At the top of its wish list: permanent relief from Trump’s tariffs on foreign manufacturing. While Apple has received some exemptions, the company has still paid roughly $2 billion in tariffs over the last two quarters.
Additionally, Apple and other tech giants want continued U.S. pressure on foreign governments especially the European Union that are imposing increasingly strict regulations on Big Tech. The EU has already forced Apple to adopt USB-C chargers and loosen its control over the App Store, among other measures.
In that context, Apple’s announcements serve dual purposes: bolstering its domestic footprint while courting favor with policymakers who can shape its regulatory and financial environment.
So yes Apple is investing more money in the U.S.
But no that doesn’t mean it's shifting iPhone manufacturing to America anytime soon. And it’s certainly not the full narrative Trump might want you to believe.
