Jueves, 20 Setiembre, 2018

Cook: Apple Spending $1B for Advanced Manufacturing Jobs

Ramiro Mantilla | 08 May, 2017, 15:04

Apple will invest $1 billion to help create more US manufacturing jobs and to counter recurring criticism about its reliance on overseas factories to assemble most of its iPhones and other devices. The news, which Cook disclosed in an interview with CNBC's Jim Cramer, indicates that Apple's executive leadership is intent on heading off any potential conflicts between the company and President Trump, who has promised to bring jobs back and pressure corporations to invest more domestically.

In the company's earning call, Cook blamed unfavorable exchange rates and falling sales in the Hong Kong market, which attracted fewer Chinese visitors to purchase Apple products during the period. "And so that and the demographics of the country is why we're putting so much energy there", Cook added.

Cook, who met with lawmakers in Washington earlier this year to discuss tax policy and technology issues, said that Apple would have to borrow the cash for its USA manufacturing investment fund and said he was hopeful Trump administration would address the repatriation issue. "If we can create many manufacturing jobs, those manufacturing jobs create more jobs around them because you have a service industry that builds up around them". Apple said the segment generated $7.04 billion in revenue this past quarter, the second straight quarter it's crossed the $7 billion threshold, and a $1.05 billion rise year-over-year. So I think the administration, you saw they're really getting this and want to bring this (cash) back. On the developer community, we're asking ourselves: How can we empower the next generation of developers?

Cook added, "How can we get more people to do advance manufacturing in the United States?"

Apple hopes that its $1 billion investment will expedite job creation and growth. Apple sales in India, Cook said, grew at double digits and set a new record in the March quarter. Apple's contribution amounts to a tiny fraction of its $257 billion in cash.

"To invest in the United States, we have to borrow". Our good position is we can borrow.