Apple just promised to give USA manufacturing a $1 billion boost
- Author: Arturo Norris May 05, 2017,
May 05, 2017, 11:29
The Apple logo is seen on the outside of Bill Graham Civic Auditorium before the start of an event in San Francisco, California on September 7, 2016.
While it did not announce a new manufacturing facility with thousands of manufacturing jobs, Apple, the world's most valuable public company, said it planned to dedicate resources to American job creation with a $1 billion fund to invest in advanced manufacturing in the United States.
During Mad Money, Cook explained that Apple is starting a $1 billion fund to promote advanced manufacturing jobs in the United States.
Bullish on India, Apple CEO Tim Cook has said that the United States tech giant was bolstering its presence in India's "underpenetrated" market to tap the huge growth opportunities in the fast-growing economy amidst improving 4G network infrastructure.
Apple is already facing the effects of anticipation for the iPhone 8, with CEO Tim Cook recently disclosing that rumors about the smartphone have resulted in many consumers not buying existing devices as they wait patiently for the next one.
Cook, 56, was asked whether the California-based company is underpenetrated in India and if it needs to work with the government to have Apple-owned stores or production given the great opportunity in the country.
"I think with each administration in every country in the world, there are things you disagree and things you agree, and you look to find common ground and try to influence the things you don't", he said.
Although Apple designs its products in the USA, majority are built in factories run by contractors in China and other countries.
And while Cook has been among Silicon Valley stars critical of Trump when it comes to limiting immigration, he endorsed a push for comprehensive tax reform. "We have been investing quite a bit". Apple is set to announce its first investment for the fund later this month. So you're the first person I'm telling. It appears that Apple may indeed be a part of what will be announced from Softbank and Foxconn.
Foxconn is the world's largest contract electronics maker and is best-known for assembling products for global brands such as Apple and Sony.
In an earnings call this week, Apple said that iPhone sales slumped in the last quarter because of widespread reports on what it might have planned for a future iPhone.
Apple has been secretive about the release of the iPhone 8.
When Cramer pointed out the $1 billion in seed money is a small slice of Apple's $256 billion cash reserve, Cook pointed out that to get $1 billion in cash in the U.S., Apple would have to borrow some of it. "How can we train more people to code so they can pursue their passion?"