Tim Cook’s timing is as good as Amy Klobuchar’s

The day after Apple unveiled AirTag, she invited downtrodden Tile to testify. Five days later, he put $430 billion on America’s table.

From Apple’s “Apple commits $430 billion in US investments over five years” posted Monday as a press release:

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. Over the past three years, Apple’s contributions in the US have significantly outpaced the company’s original five-year goal of $350 billion set in 2018. Apple is now raising its level of commitment by 20 percent over the next five years, supporting American innovation and driving economic benefits in every state. This includes tens of billions of dollars for next-generation silicon development and 5G innovation across nine US states.

“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states,” said Tim Cook, Apple’s CEO. “We’re creating jobs in cutting-edge fields — from 5G to silicon engineering to artificial intelligence — investing in the next generation of innovative new businesses, and in all our work, building toward a greener and more equitable future.”

Today, Apple supports more than 2.7 million jobs across the country through direct employment, spending with US suppliers and manufacturers, and developer jobs in the thriving iOS app economy. Apple is the largest taxpayer in the US and has paid almost $45 billion in domestic corporate income taxes over the past five years alone…

As part of its investments and expansion, Apple plans to invest over $1 billion in North Carolina and will begin construction on a new campus and engineering hub in the Research Triangle area. The investment will create at least 3,000 new jobs in machine learning, artificial intelligence, software engineering, and other cutting-edge fields.

My take: Realpolitik.

10 Comments

  1. bas flik said:
    this spending spree of 430 billion will end up destroying windows and make Apple the biggest monopolistic force ever created by mankind. By then Apple will have more power than the whitehouse and politicians touching Apple will loose all their votes.

    11
    April 26, 2021
  2. Gregg Thurman said:
    Politicians love nothing more than going back to their respective constituents, and take credit for new job creation (whether they were actually responsible or not).

    Apple can’t donate that much to election campaigns, but it doesn’t have to, politicians are well aware of where the votes come from, and it ain’t from the unemployed.

    Being green and inclusive are powerful incentives to voters, but not near as much as high paying jobs. Put the three together, and the politician that can claim credit for a Company expanding into their neighborhood is a lock to get re-elected.

    15
    April 26, 2021
  3. bas flik said:
    Apple is becoming a black hole.
    sucking everybody in it who comes to close.
    i am already in the center of it and cannot escape anymore.
    lost and disconnected but happy!

    13
    April 26, 2021
    • Timothy Smith said:
      I prefer “black hole” to “walled garden.” The bigger it gets, the bigger it gets.

      10
      April 26, 2021
  4. Jerry Doyle said:
    “…. Apple today announced an acceleration of its US investments,….”.

    Analysts, think analytically what the above “acceleration” implies about where Apple’s target price lies. Higher! The statement above says unequivocally that Apple’s growth is robust and growing faster. What does it take to convince WS Apple already is a $200 stock price.

    12
    April 26, 2021
    • David Drinkwater said:
      You are definitely right here, Jerry:

      If Apple leadership are investing in Apple or AAPL, it is because they think the long-term horizon is pointing upward.

      That’s very reassuring. And exciting.

      8
      April 26, 2021
  5. Jonny T said:
    Leaving the Black Hole is to jump into the flames of hell..!

    8
    April 26, 2021
  6. David Drinkwater said:
    BTW I don’t totally buy the headline.

    I think the story is more like:

    “Klobuchar checks. Cook check-raises.”

    8
    April 26, 2021
  7. Bart Yee said:
    The other side of the investments are the short to midterm boost in construction jobs and the multiplier effect of the permanent jobs created – increased housing utilization, uptick in the housing market, spending at local resources (home, grocery, restaurant, fuel, public/private transportation, banking, etc.), and positive impacts on the jobs market.

    Spreading Apple investments throughout the US means more recruitment of available talent, getting footholds in more states to expand supplier and manufacturing jobs, having more influence at the state legislative level against threats to Apple by affecting what politicians understand best – the economics of jobs and money.
    Plus continued halo effect for Apple.

    Note the logistics investments is one of Apple’s Amazon-style shipping system supply chain to ensure timely product delivery in its biggest market.

    4
    April 27, 2021

Leave a Reply