Trump announces US$100 billion new investment pledge from Apple
The new pledge brings Apple's total investment commitment in the US to US$600 billion. Earlier this year, the company had announced it would invest US$500 billion and hire 20,000 workers across the country over the next four years.
The announcement centres on expanding Apple's supply chain and advanced manufacturing footprint in the US, but still falls short of Trump's demand that Apple begin making iPhones domestically.
"Companies like Apple, they're coming home. They're all coming home," Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a US-made souvenir with a 24-karat gold base.
"This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America," Trump added.
Asked if Apple could eventually build entire iPhones in the US, Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas "for a while".
While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term.
In May, Trump had threatened Apple with a 25 per cent tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple US$800 million in the June quarter.
"Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple," said Daniel Ives, an analyst with Wedbush Securities.
"A SAVVY SOLUTION"
Apple has a mixed track record when it comes to following through on investment promises.
In 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013 and Apple has since moved that production to Thailand.
Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years.
Despite political pressure, analysts widely agree that building iPhones in the US remains unrealistic due to labour costs and the complexity of the global supply chain.
"The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the US," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares.
Partners on Apple's latest US investment effort include specialty glass maker Corning, semiconductor manufacturing equipment supplier Applied Materials, and chipmakers Texas Instruments, GlobalFoundries, and Broadcom.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 minutes ago
- Straits Times
Apple rejects Elon Musk's claim of App Store bias towards ChatGPT
Sign up now: Get ST's newsletters delivered to your inbox Apple said its goal at the App Store is to offer 'safe discovery' for users. SAN FRANCISCO - Apple on Aug 14 rejected Elon Musk's claim that its digital App Store favours OpenAI's ChatGPT over his company's Grok and other rival AI assistants. Mr Musk has accused Apple of giving unfair preference to ChatGPT on its App Store and threatened legal action, triggering a fiery exchange with OpenAI chief executive officer Sam Altman this week. 'The App Store is designed to be fair and free of bias,' Apple said, in reply to an AFP inquiry. 'We feature thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria.' Apple added that its goal at the App Store is to offer 'safe discovery' for users and opportunities for developers to get their creations noticed. But earlier this week, Mr Musk said Apple was 'behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,' without providing evidence to back his claim. 'xAI will take immediate legal action,' he said on his social media network X, referring to his own artificial intelligence company, which is responsible for Grok. Top stories Swipe. Select. Stay informed. Singapore Over 100 people being investigated for vape offences, say MOH and HSA Singapore Bukit Merah fire: Residents relocated as town council carries out restoration works Singapore askST: What to do in the event of a fire at home Singapore Jalan Bukit Merah fire: PMD battery could have started fatal blaze, says SCDF Singapore askST: What are the fire safety rules for PMDs? Asia AirAsia flight from KL to Incheon lands at wrong airport in South Korea Asia India and China work to improve ties amid Trump's unpredictability Singapore From quiet introvert to self-confident student: How this vulnerable, shy teen gets help to develop and discover her strength X users responded by pointing out that China's DeepSeek AI hit the top spot in the App Store early this year, and Perplexity AI recently ranked number one in the App Store in India. DeepSeek and Perplexity compete with OpenAI and Mr Musk's startup xAI. Mr Altman called Mr Musk's accusation 'remarkable' in a response on X, charging that Mr Musk himself is said to 'manipulate X to benefit himself and his own companies and harm his competitors and people he doesn't like.' Mr Musk called Mr Altman a 'liar' in the heated exchange. OpenAI and xAI recently released new versions of ChatGPT and Grok. App Store rankings listed ChatGPT as the top free app for iPhones on Aug 14, with Grok in seventh place. Factors going into App Store rankings include user engagement, reviews and the number of downloads. US billionaire Elon Musk's Grok chatbot triggered an online storm in July, after inserting anti-Semitic comments into answers without prompting. PHOTO: AFP Grok was temporarily suspended on Aug 11 in the latest controversy surrounding the chatbot. No official explanation was provided for the suspension, which followed multiple accusations of misinformation including the bot's misidentification of war-related images – such as a false claim that an AFP photo of a starving child in Gaza was taken in Yemen years earlier. In July, Grok triggered an online storm after inserting anti-Semitic comments into answers without prompting. In a statement on Grok's X account later that month, the company apologised 'for the horrific behaviour that many experienced.' A US judge has cleared the way for a trial to consider OpenAI legal claims accusing Mr Musk – a co-founder of the company – of waging a 'relentless campaign' to damage the organisation after it achieved success following his departure. The litigation is another round in a bitter feud between the generative AI start-up and the world's richest person. Mr Musk founded xAI in 2023 to compete with OpenAI and the other major AI players. AFP
CNA
an hour ago
- CNA
US Supreme Court declines for now to block Mississippi social media age-check law
WASHINGTON :The U.S. Supreme Court declined on Thursday to put on hold Mississippi law requiring that users of social media platforms verify their age and that minors have parental consent in a challenge by a trade group whose members include Meta's Facebook, Alphabet's YouTube and Snapchat. The justices denied a request by NetChoice to block the law while the Washington-based tech industry trade association's legal challenge to the law, which it argues violates the U.S. Constitution's protections against government abridgement of free speech, plays out in lower courts. Justice Brett Kavanaugh in a statement about the court's order said the Mississippi law was likely unconstitutional, but that NetChoice had not met the high bar to block the measure at this early stage of the case. NetChoice had turned to the Supreme Court after the New Orleans-based 5th U.S. Circuit Court of Appeals let the law take effect even though a judge found it likely runs afoul of the First Amendment. NetChoice sued in federal court in 2024 in a bid to invalidate the law, which was passed unanimously in the state legislature amid concern by lawmakers about the potential negative effects of social media use on the mental health of children. Its emergency request to the justices marked the first time the Supreme Court was asked to consider a social media age-verification law. The law requires that a social media platform obtain "express consent" from a parent or guardian of a minor before a child can open an account. It also states that regulated social media platforms must make "commercially reasonable" efforts to verify the age of users. Under the law, the state can pursue civil penalties of up to $10,000 per violation as well as criminal penalties under Mississippi's deceptive trade practices law. U.S. District Judge Halil Suleyman Ozerden in Gulfport, Mississippi, last year blocked Mississippi from enforcing the restrictions on some NetChoice members. Ozerden issued a second order in June pausing the rules against those members, including Meta and its Instagram and Facebook platforms, Snapchat and YouTube. The 5th Circuit on July 17 issued a one-sentence ruling that paused the judge's order, without explaining its reasoning. Courts in seven states have preliminarily or permanently blocked similar measures, according to NetChoice. Some technology companies are separately battling lawsuits brought by U.S. states, school districts and individual users alleging that social platforms have fueled mental health problems. The companies have denied wrongdoing. NetChoice said the social media platforms of its members already have adopted extensive policies to moderate content for minors and provide parental controls. In its request to the Supreme Court, the state told the justices that age-verification and parental consent requirements "are common ways for states to protect minors."
CNA
an hour ago
- CNA
Trump says Putin ready to make deal on Ukraine, US hopes to include Zelenskyy
MOSCOW/LONDON/KYIV: US President Donald Trump said on Thursday (Aug 14) he thought Vladimir Putin was ready to make a deal on ending his war in Ukraine after the Russian president floated the prospect of a nuclear arms agreement on the eve of their summit in Alaska. Ukrainian President Volodymyr Zelenskyy and his European allies have intensified their efforts this week to prevent any deal between the US and Russia emerging from Friday's summit that leaves Ukraine vulnerable to future attack. "I think he's going to make a deal," Trump said in a Fox News radio interview, adding that if the meeting went well, he would call Zelenskyy and European leaders afterwards, and that if it went badly, he would not. The aim of Friday's talks with Putin is to set up a second meeting including Ukraine, Trump said, adding: "I don't know that we're going to get an immediate ceasefire." Putin earlier spoke to his most senior ministers and security officials as he prepared for a meeting with Trump in Anchorage, Alaska, on Friday that could shape the endgame to the largest war in Europe since World War Two. In televised comments, Putin said the US was "making, in my opinion, quite energetic and sincere efforts to stop the hostilities, stop the crisis and reach agreements that are of interest to all parties involved in this conflict." This was happening, Putin said, "in order to create long-term conditions for peace between our countries, and in Europe, and in the world as a whole - if, by the next stages, we reach agreements in the area of control over strategic offensive weapons." His comments signalled that Russia will raise nuclear arms control as part of a wide-ranging discussion on security when he sits down with Trump. A Kremlin aide said Putin and Trump would also discuss the "huge untapped potential" for Russia-US economic ties. A senior Eastern European official, who requested anonymity to discuss sensitive matters, said Putin would try to distract Trump from Ukraine at the talks by offering him possible progress on nuclear arms control or something business-related. "We hope Trump won't be fooled by the Russians; he understands all (these) dangerous things," the official said, adding that Russia's only goal was to avoid any new sanctions and have existing sanctions lifted. 'LIKE A CHESS GAME' Trump said there would be a press conference after the talks, but that he did not know whether it would be joint. He also said there would be "a give and take" on boundaries and land. "The second meeting is going to be very, very, very important. This meeting sets up like a chess game. This (first) meeting sets up a second meeting, but there is a 25 percent chance that this meeting will not be a successful meeting," he said. Trump said it would be up to Putin and Zelenskyy to strike an agreement, saying: "I'm not going to negotiate their deal." Russia controls around a fifth of Ukraine, and Zelenskyy and the Europeans worry that a deal could cement those gains, rewarding Putin for 11 years of efforts to seize Ukrainian land and emboldening him to expand further into Europe. An EU diplomat said it would be "scary to see how it all unfolds in the coming hours. Trump had very good calls yesterday with Europe, but that was yesterday." Trump had shown willingness to join the security guarantees for Ukraine at a last-ditch virtual meeting with European leaders and Zelenskyy on Wednesday, European leaders said, though he made no public mention of them afterwards. Friday's summit, the first Russia-US summit since June 2021, comes at one of the toughest moments for Ukraine in a war that has killed tens of thousands and displaced millions since Russia's full-scale invasion in February 2022. Speaking after Wednesday's meeting, French President Emmanuel Macron said Trump had said the transatlantic NATO alliance should not be part of any security guarantees designed to protect Ukraine from future attacks in a post-war settlement. However, Trump also said the US and all willing allies should be part of the security guarantees, Macron added. Expanding on that, a European official told Reuters that Trump said on the call he was willing to provide some security guarantees for Europe, without spelling out what they would be. It "felt like a big step forward," said the official, who did not want to be named. It was not immediately clear what such guarantees could mean in practice. On Wednesday, Trump threatened "severe consequences" if Putin does not agree to peace in Ukraine and has warned of economic sanctions if his meeting on Friday proves fruitless.
