Apple share price jumps over 5% as iPhone maker pledges additional $100 billion investment in the US

Mint

3 days ago

Apple share price jumped over 5% on Wednesday after the iPhone maker announced an additional $100 billion investment in the United States, a move which will help it sidestep potential tariffs on iPhones.
Apple shares gained 5.10% to close at $213.28 apiece, lifting the Nasdaq Composite 1.21% for the day.
US President Donald Trump announced the new investment plan, which brings Apple's total commitment to $600 billion. Earlier this year, the tech giant had pledged to invest $500 billion and create 20,000 jobs across the country over the next four years.
The latest investment will focus on expanding Apple's domestic supply chain and advanced manufacturing footprint.
'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, Reuters reported.
When asked whether Apple could eventually assemble entire iPhones in the United States, Cook explained that several components—such as semiconductors, glass, and Face ID modules—are already manufactured domestically. However, he noted that final assembly would continue to take place overseas 'for a while.'
In May, Trump had threatened to impose a 25% tariff on Apple products manufactured overseas.
Apple still produces the majority of its devices—including iPhones and iPads—in Asia, primarily China, though it has diversified some operations to Vietnam, Thailand, and India in recent years.
Key partners in Apple's latest US investment initiative include specialty glassmaker Corning, semiconductor equipment supplier Applied Materials, and chip manufacturers Texas Instruments, GlobalFoundries, and Broadcom.
Shares of Corning rose nearly 4% in after-hours trading, while Applied Materials gained close to 2%.
Apple share price has risen 1.5% over the past month but is down 8.5% over the past six months. On a year-to-date (YTD) basis, it has declined 12.5%, though it remains up 3% over the past year and has surged 92% over the last five years.
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(With inputs from Reuters)