Apple plans $1 bn ''advanced manufacturing fund'' to fund United States manufacturing

Lena Tucker
May 6, 2017

In a conference call announcing the company's Q1 results, CEO Tim Cook said the number of Apple Pay transactions for the quarter was up 450 percent compared to Q1 of 2016.

The company said it would announce the first investment from its new fund later this month. Cook also said Apple plans to fund programs that could include teaching people how to write computer code to create apps, and will release more details about the effort this summer. The US is one of the leading producers of advanced technologies in the world, so it's little surprise that Apple is looking to further invest in this sector, especially as the company stands to directly gain from it.

President Trump has made bringing manufacturing jobs back to the United States a big part of his agenda and a number of companies, including Apple are looking to increase their manufacturing in the US.

Of these 2 million jobs, Apple says that 1,530,000 are attributable to the App Store ecosystem, 450,000 are linked to its USA -based suppliers, and 80,000 work directly for the company. Cook's initiative was apparently not influenced by Trump; the president had earlier praised companies such as Carrier, SoftBank and Charter Communications for promising to hire more American workers.

Even as it pledges to spend big on what Trump views as a major priority, Apple and other tech companies still have billions of dollars in revenues stashed overseas.

Cook's off-hand comment refers to the fact that most of Apple's cash pile is held overseas, and the company has no plans to repatriate that money unless it can secure more favorable terms with regards to the US tax code.

Trump has proposed slashing corporate tax rates in a way that encourages businesses to bring some of those foreign-held funds back to the United States. "And one of the things you do is giving back", Cook said. If you do not expose up, I think it is the worst scenario.

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