$350 Billion Contribution to US Economy Over Next Five Years
Apple® today announced a new set of investments to build on its
commitment to support the American economy and its workforce,
concentrated in three areas where Apple has had the greatest impact
on job creation: direct employment by Apple, spending and
investment with Apple's domestic suppliers and manufacturers, and
fueling the fast-growing app economy which Apple created with
iPhone® and the App Store®. Apple is already responsible for
creating and supporting over 2 million jobs across the United
States and expects to generate even more jobs as a result of the
initiatives being announced today.
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 $350 billion over the next five years, not
including Apple's ongoing tax payments, the tax revenues generated
from employees' wages and the sale of Apple products.
Planned capital expenditures in the US, 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.
"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."
Apple, already the largest US taxpayer, anticipates repatriation
tax payments of approximately $38 billion as required by recent
changes to the tax law. A payment of that size would likely be the
largest of its kind ever made.
Growing Apple's US Operations
Apple expects to invest over $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.
The company plans to establish an Apple 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.
Over $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.
Today, Apple is breaking ground on a new facility in downtown
Reno, which will support its existing Nevada facilities.
All of Apple's US facilities, including offices, retail stores
and data centers, are powered by 100 percent renewable energy
sources like solar, wind and micro-hydro power, which Apple
generates or purchases from local projects. The new campus
announced today will also be powered entirely by green energy.
Investing in Apple's Domestic Suppliers and Manufacturing
Partners
Building on the initial success of the Advanced Manufacturing
Fund announced last spring, Apple is increasing the size of the
fund from $1 billion to $5 billion. The fund was established to
support innovation among American manufacturers and help others
establish a presence in the US. It is already backing projects with
leading manufacturers in Kentucky and rural Texas.
Apple works with over 9,000 American suppliers — large and small
businesses in all 50 states — and each of Apple's core products
relies on parts or materials made in the US or provided by US-based
suppliers.
Preparing Students for the App Economy
Apple, which has a 40-year history in education, also plans to
accelerate its efforts across the US in support of coding education
as well as programs focused on Science, Technology, Engineering,
Arts and Math (STEAM).
The iOS app economy has created more than 1.6 million jobs in
the US and generated $5 billion in revenue for American app
developers in 2017. With demand for coding skills stronger than
ever, today there are more than 500,000 unfilled
programming-related positions across the country, and the US Bureau
of Labor Statistics predicts that by 2020 there will be 1.4 million
more software development jobs than applicants qualified to fill
them.¹
To address the coding skills gap and help prepare more people
for jobs in software development, Apple created a powerful yet
easy-to-learn coding language called Swift™, the free Swift
Playgrounds™ app and a free curriculum, App Development with Swift,
which are available to anyone and are already being used by
millions of students at K-12 schools, summer camps and leading
community colleges across the country. Over 100,000 students and
teachers have also attended coding classes at Apple retail
stores.
Apple will expand these initiatives and add new programs to
support teachers and teacher training. The company is also
increasing funding for its ConnectED program, so students in
historically underserved communities have a chance to learn app
coding skills and enjoy other benefits of technology in the
classroom.
Apple revolutionized personal technology with the introduction
of the Macintosh in 1984. Today, Apple leads the world in
innovation with iPhone, iPad, Mac, Apple Watch and Apple TV.
Apple's four software platforms — iOS, macOS, watchOS and tvOS —
provide seamless experiences across all Apple devices and empower
people with breakthrough services including the App Store, Apple
Music, Apple Pay and iCloud. Apple's more than 100,000 employees
are dedicated to making the best products on earth, and to leaving
the world better than we found it.
¹According to code.org, there are currently 503,338 open
computing jobs nationwide.
This press release contains forward-looking statements, within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include without limitation
those about Apple's plans for future investments and expansion,
taxes, Apple's plans for managing its cash balances, and
repatriation of overseas cash. These statements involve risks and
uncertainties, and actual results may differ. More information
regarding potential risks and other factors that could affect
Apple's financial results is included in Apple's filings with the
SEC, including in the "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations"
sections of Apple's most recently filed periodic reports on Form
10-K and Form 10-Q and subsequent filings. Apple assumes no
obligation to update any forward-looking statements or information,
which speak as of their respective dates.
NOTE TO EDITORS: For additional information visit Apple Newsroom
(www.apple.com/newsroom), or call Apple's Media Helpline at (408)
974-2042.
© 2018 Apple Inc. All rights reserved. Apple, iPhone, the App
Store, Swift, Swift Playgrounds and the Apple logo are trademarks
of Apple. Other company and product names may be trademarks of
their respective owners.
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version on businesswire.com: http://www.businesswire.com/news/home/20180117005748/en/
AppleJosh Rosenstock, 408-862-1142jrosenstock@apple.comFred
Sainz, 669-227-0492sainz@apple.com
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