Apple to inject $350 billion into the US economy in next 5 years

Apple anticipates repatriation tax payments of approximately $38 billion as required by the recent changes to the tax law.

  • Published: January 18, 2018 8:20 AM IST

Apple has announced that it will invest and spend about $350 billion in the United States in the next five years creating some 20,000 jobs in the country. Already the largest US taxpayer, Apple anticipates repatriation tax payments of approximately $38 billion as required by the recent changes to the tax law.

A payment of that size would likely be the largest of its kind ever made, the Silicon ValValley-basedmpany said in a statement.

“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible,” he said in a statement.

According to a company statement, Apple plans to establish a new campus in a new location, which will initially house technical support for customers. The location of this new facility will be announced later in the year. Apple expects to invest over USD 30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one.

Apple already employs 84,000 people in all 50 states. More than $10 billion of Apple’s expanded capital expenditures will be investments in data centers across the US. Over the last decade, Apple has invested billions of dollars in data centers and co-located facilities in seven US states, including North Carolina, Oregon, Nevada, Arizona, and a recently announced project in Iowa.

Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers an estimated $55 billion for 2018 Apple’s direct contribution to the US economy will be more than USD 350 billion over the next five years, the company said.

This figure is not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products, the company said. The White House applauded Apple’s announcement and attributed this to the tax reforms of President Donald Trump.

“Just as the president promised, making our businesses more competitive internationally is translating directly into benefits for the American worker, through increased wages, better benefits, and new jobs,” Lindsay Walters, the White House Deputy Press Secretary said. “This is great news for the American economy and for America s workers,” tweeted the House Speaker Paul Ryan.

Apple, however, did not say what impact this would have on its international investment plan. The company has a substantial investment in countries like China and is looking at investing in India. Apple did not immediately respond to questions in this regard.

This is published unedited from the PTI feed.

  • Published Date: January 18, 2018 8:20 AM IST