Apple broadcasted $350 billion contribution to US economy over five years

Apple Inc. is showering it’s investment for the creation of jobs, stimulation of local economies

Apple Inc.  announced on Wednesday that it planned to contribute $350 billion to the U.S. economy over five years, new jobs, a second headquarters, and a series of investments being a major part of the investment.

Apple is expecting to pay a repatriation tax of about $38 billion. Apple has the most overseas cash of any U.S. company at more than $250 billion.

“A payment of that size would likely be the largest of its kind ever made,” Apple said in a release. Shares were up 0.6% in Wednesday afternoon trading.

Apple is in calculation to create 20,000 jobs on top of the 84,000 it currently has. Some of those positions will be at existing locations, while others will be at a new campus that the company expects to open in a city yet to be named. Apple opened a new spaceship-shaped campus called Apple Park in 2017, which took years to complete.

Apple says, the investment does not include ongoing tax payments, the tax revenues generated from employees’ wages or the sale of Apple products.

It will also invest $10 billion of that money in new data centers in the U.S., adding to the seven already in operation or planned. There is a new one coming in Iowa and they broke ground on one in Reno just today, in addition to data centers already in operation in North Carolina, Oregon, Nevada and Arizona.

Apple plans to expand its coding initiatives, helping students and teachers from K-12 and at community colleges across the country learn valuable coding skills.

Apple’s spending over the next five years will also include more money being allocated to its Advanced Manufacturing Fund, which invests in domestic manufacturers. The company originally planned to make $1 billion in investments through the fund, but it said Wednesday that it would increase the size to $5 billion.

“Planned capital expenditures in the U.S., investments in American manufacturing over five years and a record tax payment upon repatriation of overseas profits will account for approximately $75 billion of Apple’s direct contribution,” the company said. 

The company also plans to increase spending on its ConnectED program, which helps children in underserved schools learn coding skills.

Apple shares are up 48% over the last 12 months, compared with a 31% gain for the Dow Jones Industrial Average.

Image Source: Glassdoor

by Israt Yasmin, The Blogging Connection

Leave a Reply

Your email address will not be published.