Apple's (NASDAQ:AAPL) latest announcement to invest $500 billion in the U.S. over the next four years has everyone talking. The tech giant plans to hire 20,000 people, expand its manufacturing presence, and build a massive new AI-focused factory in Texas. But while this sounds like a big win for American jobs, some experts aren't buying into the hype.
The Skepticism: Is This Plan Even Possible?
Not everyone is convinced Apple can pull off such a massive investment. According to Fortune, UBS analyst David Vogt called the numbers "completely unrealistic mechanically." His main concern? Apple's supply chain.
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Right now, only 10% of it is based in the U.S., with the bulk of production happening in Asia. Shifting a significant portion of that back to the States would take much longer than four years.
Then there's the financial reality. Vogt points out that Apple already spends $10 billion per year on data centers, generates about $100 billion in free cash flow, and uses $90 billion of that for stock buybacks.
Hiring 20,000 new employees would cost about $5 billion annually—so where's the rest of this investment money coming from? Some analysts believe it's more of a political maneuver than an actual, new financial commitment.
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The Associated Press reports that Apple's investment announcement came just days after CEO Tim Cook met with Donald Trump. The timing is interesting because Trump has been pushing an "America First" manufacturing policy and threatening new tariffs on Chinese imports.
Apple, which relies heavily on China for iPhone production, could be trying to get ahead of potential trade restrictions.
This isn't Apple's first big investment pledge. In 2018, the company announced a $350 billion contribution to the U.S. economy. By 2021, it had increased that number to $430 billion. Now, we're at $500 billion—but how much of this is new spending versus what Apple was already planning to invest?
According to The Wall Street Journal, Apple has spent $1.1 trillion in the past four years, with about 43% of its revenue coming from the Americas. That suggests a big chunk of this investment is just a continuation of Apple's existing spending patterns, rather than a completely new commitment.
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