Apple announces plans to repatriate billions in overseas cash, says it will ‘contribute’ $350 billion to the US economy over the next 5 years

Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy. The headline from Apple is that it will “contribute” $350 billion in the U.S. economy over the next five years, although it’s unclear exactly how the company came to that number. But the company promised to create 20,000 new jobs and a new campus thanks, in part, to the prospect of tax reform. It anticipates a $38 billion tax bill for repatriated cash, as a result of the new tax bill. This implies it will bring back virtually all of its $250 billion in overseas cash. Apple also said it would spend over $30 billion in capital expenditures over the next five years. About $10 billion in capital expenditures will be investments in U.S. data centers, the company said. Apple also says it will spend $5 billion as part of an innovation fund, up from the $1 billion it previously announced CNBC’s “Mad Money.” The job creation will focus on direct employment, but also suppliers and its app business, which it had already planned to grow substantially. The new campus will focus on customer support. The announcement raises the bar for the world’s most valuable company — now a huge driver of the economy — to continue its dominance and growth in the wake of political pressure on big tech companies. The plan calls for Apple to keep up 2018’s $55 billion spending rate with domestic suppliers and manufacturers. “We have a deep sense of responsibility to give back to our country and the people who help make our success possible,” chief executive Tim Cook said in a statement. In 2016, then president-elect Donald Trump publicly called out Apple’s reliance on its Chinese supply chain, telling The New York Times that he would “get Apple to build a big plant in the United States, or many big plants in the United States.” Wednesday’s announcement indicates that Apple will still have hundreds of billions of dollars in cash. It could spend that money on buybacks, dividends or acquisitions or moonshot projects. Apple shares were up about half a percent after the announcement, adding about $5.6 billion to the company’s market capitalization after the stock opened Wednesday’s trading session down 0.3 percent. Click here to see the full release.

 

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