WASHINGTON, DC August 6: US President Donald Trump shakes arms with CEO of Apple Tim Prepare dinner throughout a gathering within the Oval Workplace of the White Home on Wednesday August 6, 2025.
Demetrius Freeman | The Washington Publish | Getty Photographs
President Donald Trump has made clear that he needs Apple to make iPhones within the U.S.
Apple CEO Tim Prepare dinner is doing what he can to appease the commander in chief, with out making that final concession.
Prepare dinner on Wednesday appeared on the White Home with 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 needs, however Prepare dinner obtained to tout Apple’s place on U.S. manufacturing.
A few of Apple’s most beneficial elements, comparable to its glass and facial recognition sensor, are made by U.S. corporations that Apple has labored with for years. Ultimate meeting is barely a small, although very essential, a part of iPhone manufacturing.
“The ultimate meeting that you simply deal with, that can be elsewhere for some time,” Prepare dinner mentioned Wednesday within the Oval Workplace.
Trump appeared completely satisfied sufficient, for now.
“He makes most of the parts right here, and we have been speaking about it,” Trump mentioned. “The entire thing is about up elsewhere, and it has been there for a very long time when it comes to price and all, however I feel we might incentivize him sufficient that at some point he’ll be bringing that again.”
Consultants mentioned Prepare dinner’s announcement appeared designed to get Apple out of Trump’s crosshairs with respect to tariffs. Trump introduced throughout the public assembly that the administration deliberate to put a tariff on chips that might double their worth, however Apple — which depends on tons 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 provide the president one thing to brag about with out destroying their firm, that the issue would possibly go away for a sure period of time,” mentioned Peter Cohan, professor of technique and entrepreneurship at Babson Faculty who has written case research on Apple.
The gambit labored. Apple inventory rose 5% on Wednesday and one other 3% on Thursday.
“What Tim Prepare 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 searching for headlines.”
What Apple introduced
A present given by Apple CEO Tim Prepare 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 develop its relationship with U.S. suppliers, it might give these corporations the talents and capability to develop their enterprise. And it lets Apple take some credit score for supporting the 450,000 complete jobs at its suppliers.
A better take a look at the members of this system exhibits that Apple is leaning on a few of its longest-tenured companions. All collectively, Apple mentioned that its U.S. suppliers are on monitor 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 mentioned that every one of its cowl glass for iPhones and Apple Watches can be made by Corning, in Kentucky, and that it will spend $2.5 billion on that effort. It is a highly effective image — whereas the telephone is likely to be screwed collectively in China or India, the floor that customers contact around the globe can be made within the U.S.
However Apple has pointed to Corning as a essential American provider previously. The corporate’s glass has been used on the iPhone since its first model in 2007. Whereas Apple sometimes would not let its suppliers discuss their relationships, former COO Jeff Williams hailed Corning’s glass in 2017, when it obtained 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 price 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 Devices to make chips in Texas and Utah. Texas Devices has lengthy equipped chips for the iPhone, comparable to circuits to regulate USB interfaces or energy shows. Apple mentioned it will accomplice with Samsung, one other key provider of elements like iPhone shows, to launch an “progressive new know-how for making chips,” with out providing extra particulars.
Apple declared that it’ll accomplice instantly with corporations within the semiconductor chain, even when they sometimes promote providers or items to Apple suppliers. Different partnerships are with Utilized Supplies, a tooling firm, GlobalFoundries, a chip foundry, and GlobalWafers America, which is supplying Taiwan Semiconductor Manufacturing Co. and Texas Devices with made-in-USA wafers, the start line 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 parts within the U.S.
In the meantime, Apple will purchase thousands and thousands of superior chips made by TSMC in Arizona, the place will probably be the manufacturing facility’s largest buyer. Prepare dinner joined former President Joe Biden on the plant in 2022 and dedicated to purchasing chips from the manufacturing facility.
Apple mentioned it will spend money on and change into 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 will develop present knowledge facilities for synthetic intelligence in North Carolina, Iowa, Nevada and Oregon. It is highlighted these knowledge facilities previously in spending commitments.
Whereas Apple’s announcement despatched accomplice shares up, JPMorgan Chase analysts warned in a observe on Thursday that “the brand new and expanded engagements may not be utterly incremental to international revenues and outlook.”
Trump had a unique take.
“Oh, I like that you simply’re doing this,” the president mentioned, after studying a listing of Apple’s commitments.
‘Price of doing enterprise’
Apple has little to fret about on the subject of who will maintain the corporate accountable for its guarantees. The corporate would not escape 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, Texas, or North Carolina find yourself costing.
Moreover, the $600 billion headline quantity probably contains a lot of common bills.
Apple mentioned in February that its $500 billion dedication included funds to U.S. suppliers, direct employment, knowledge facilities for Apple Intelligence and company amenities, in addition to spending on Apple TV+ productions in 20 states.
Apple began publicly saying U.S. spending throughout Trump’s first administration in 2018, at a fee of about $70 billion per 12 months. In February, the corporate dedicated to $125 billion per 12 months. Wednesday’s announcement brings that determine to $150 billion yearly.
That is nonetheless a fraction of Apple’s complete spending.
In Apple’s fiscal 2024, the corporate spent $210 billion globally on price of products offered, $57.5 billion on working bills and $9.45 billion in capital expenditures for almost $275 billion in international spending throughout the interval.
Teffler mentioned she did not suppose the newly introduced spending can be materials to Apple’s profitability, particularly because it already has relationships with the assorted corporations comparable to Corning.
“They’ll spend cash someplace,” Tegler mentioned.
Wedbush analyst Dan Ives, who beforehand predicted a made-in-USA iPhone would price billions to provide and would depart shoppers paying $3,500, mentioned the Wednesday bulletins point out a a lot totally different method. He mentioned it is “the price of doing enterprise.”
