WASHINGTON, DC August 6: US President Donald Trump shakes arms with CEO of Apple Tim Cook dinner throughout a gathering within the Oval Workplace of the White Home on Wednesday August 6, 2025.
Demetrius Freeman | The Washington Publish | Getty Photos
President Donald Trump has made clear that he desires Apple to make iPhones within the U.S.
Apple CEO Tim Cook is doing what he can to appease the commander in chief, with out making that final concession.
Cook dinner on Wednesday appeared on the White Home with President Trump to announce plans to spend about $600 billion over 4 years within the U.S. Apple did not announce the made-in-USA iPhone that Trump desires, however Cook dinner acquired to tout Apple’s place on U.S. manufacturing.
A few of Apple’s Most worthy elements, corresponding to its glass and facial recognition sensor, are made by U.S. corporations that Apple has labored with for years. Last meeting is just a small, although very essential, a part of iPhone manufacturing.
“The ultimate meeting that you simply deal with, that will probably be elsewhere for some time,” Cook dinner mentioned Wednesday within the Oval Workplace.
Trump appeared glad sufficient, for now.
“He makes lots of the elements right here, and we have been speaking about it,” Trump mentioned. “The entire thing is ready up in different places, and it has been there for a very long time when it comes to value and all, however I feel we might incentivize him sufficient that in the future he’ll be bringing that again.”
Specialists mentioned Cook dinner’s announcement appeared designed to get Apple out of Trump’s crosshairs with respect to tariffs. Trump introduced in the course of the public assembly that the administration deliberate to position a tariff on chips that might double their price, however Apple — which depends on lots of of various chips for its gadgets — can be exempt.
“CEOs are realizing that they do need to do one thing, and what they’ve found is that if they offer the president one thing to brag about with out destroying their firm, that the issue may go away for a sure period of time,” mentioned Peter Cohan, professor of technique and entrepreneurship at Babson School who has written case research on Apple.
The gambit labored. Apple inventory rose 5% on Wednesday and one other 3% on Thursday.
“What Tim Cook dinner demonstrated within the first administration was an actual savvy navigation of the treacherous waters,” mentioned Nancy Tengler, CEO of Laffer Tengler Investments, which holds a place in Apple. “I believed this announcement was super-important symbolically, as a result of the president is in search of headlines.”
What Apple introduced
A present given by Apple CEO Tim Cook dinner to U.S. President Donald Trump stands on President Trump’s desk, as they current Apple’s announcement of a $100 billion funding in U.S. manufacturing, within the Oval Workplace on the White Home in Washington, D.C., U.S., August 6, 2025.
Jonathan Ernst | Reuters
The centerpiece of Apple’s announcement was the so-called American Manufacturing Program, which Apple mentioned was designed to incentivize different corporations to make elements for computer systems within the U.S.
By Apple committing to buy elements and broaden its relationship with U.S. suppliers, it might give these corporations the abilities and capability to broaden their enterprise. And it lets Apple take some credit score for supporting the 450,000 whole jobs at its suppliers.
A more in-depth take a look at the members of this system reveals that Apple is leaning on a few of its longest-tenured companions. All collectively, Apple mentioned that its U.S. suppliers are on observe to make 19 billion chips for its merchandise this 12 months. That stage of enterprise would not seem in a single day.
For instance, Apple said that every one of its cowl glass for iPhones and Apple Watches can be made by Corning, in Kentucky, and that it could spend $2.5 billion on that effort. It is a highly effective image — whereas the telephone may be screwed collectively in China or India, the floor that customers contact all over the world will probably be made within the U.S.
However Apple has pointed to Corning as a essential American provider up to now. The corporate’s glass has been used on the iPhone since its first model in 2007. Whereas Apple usually would not let its suppliers speak about their relationships, former COO Jeff Williams hailed Corning’s glass in 2017, when it acquired an “funding” from the Apple Superior Manufacturing Fund. Apple adopted that up with a $250 million dedication in 2019, and $45 million in 2021.
Analysts are skeptical that the partnership might considerably enhance Corning’s income. Morgan Stanley analysts wrote on Thursday that Corning “already produces 100% of the quilt glass for Apple’s telephones and tablets,” including that Corning’s glass enterprise referred to as Specialty Supplies is value about $2 billion per 12 months.
Apple additionally highlighted its partnership with Coherent, a longtime provider of lasers for Apple’s facial recognition {hardware}, which is made in Texas. Morgan Stanley pegged the enterprise at about $100 million per 12 months, and mentioned Apple has choices together with Lumentum and Sony.
The iPhone maker mentioned it expanded a partnership with Texas Instruments to make chips in Texas and Utah. Texas Devices has lengthy provided chips for the iPhone, corresponding to circuits to manage USB interfaces or energy shows. Apple mentioned it could companion with Samsung, one other key provider of elements like iPhone shows, to launch an “progressive new know-how for making chips,” with out providing further particulars.
Apple declared that it’ll companion straight with corporations within the semiconductor chain, even when they usually promote providers or items to Apple suppliers. Different partnerships are with Applied Materials, a tooling firm, GlobalFoundries, a chip foundry, and GlobalWafers America, which is suppling Taiwan Semiconductor Manufacturing Company and Texas Devices with made-in-USA wafers, the place to begin for a batch of chips.
GlobalFoundries manufactures chips for Broadcom, which provides wi-fi chips for iPhones. Each will work with Apple to develop and manufacture 5G elements within the U.S.
In the meantime, Apple will purchase hundreds of thousands of superior chips made by TSMC in Arizona, the place will probably be the manufacturing unit’s largest buyer. Cook dinner joined former President Biden on the plant in 2022 and dedicated to purchasing chips from the manufacturing unit.
Apple mentioned it could put money into and grow to be a buyer at an Arizona Amkor facility, which packages and checks chips, the ultimate stage earlier than set up in a pc.
Apple additionally mentioned it could broaden present information facilities for synthetic intelligence in North Carolina, Iowa, Nevada and Oregon. It is highlighted these information facilities up to now in spending commitments.
Whereas Apple’s announcement despatched companion shares up, JPMorgan Chase analysts warned in a observe on Thursday that “the brand new and expanded engagements may not be fully incremental to international revenues and outlook.”
Trump had a distinct take.
“Oh, I like that you simply’re doing this,” the president mentioned, after studying an inventory of Apple’s commitments.
‘Price of doing enterprise’
Apple has little to fret about with regards to who will maintain the corporate accountable for its guarantees. The corporate would not get away U.S. spending, and most of Apple’s suppliers are contractually required to maintain the data secret. Apple would not report how a lot its new campuses in Austin or North Carolina find yourself costing.
Moreover, the $600 billion headline quantity probably consists of plenty of common bills.
Apple said in February that its $500 billion dedication included funds to U.S. suppliers, direct employment, information facilities for Apple Intelligence and company amenities, in addition to spending on Apple TV+ productions in 20 states.
Apple began publicly asserting U.S. spending throughout Trump’s first administration in 2018, at a price of about $70 billion per year. In February, the corporate committed to $125 billion per 12 months. Wednesday’s announcement brings that determine to $150 billion yearly.
That is nonetheless a fraction of Apple’s whole spending.
In Apple’s fiscal 2024, Apple spent $210 billion globally on value of products offered, $57.5 billion on working bills, and $9.45 billion in capital expenditures for practically $275 billion in international spending in the course of the interval.
Teffler mentioned she did not assume the newly introduced spending can be materials to Apple’s profitability, particularly because it already has relationships with the assorted corporations corresponding to Corning.
“They are going to spend cash someplace,” Tegler mentioned.
Wedbush analyst Dan Ives, who beforehand predicted a made-in-USA iPhone would value billions to supply and would go away customers paying $3,500, mentioned the Wednesday bulletins point out a a lot completely different method. He mentioned it is “the price of doing enterprise.”
