That amount does not include the company's regular tax payments or tax revenues generated on the wages of its employees and sales of its products.
The iPhone maker plans capital expenditures of $30 billion in the US over five years and will create 20,000 new jobs at existing sites and a new campus it intends to open, the Cupertino, California-based company said Wednesday in a statement. -- Team, This morning we announced a new set of investments Apple will be making over the next several years, including expanding some of our existing campuses and establishing a new one.
Apple would not say if it had already selected the location of the new campus, only that it would release more information later this year. The fund is expected to grow from $1 billion to $5 billion.
Apple is also increasing the size of the Advanced Manufacturing Fund - announced last spring - that was established to support innovation among American manufacturers. More than US$10 billion will be invested in data centres in the US. The payment should be the "largest ever made", the company said. The iPhone maker estimates its current pace of spending with US-based manufacturers and suppliers at about $55 billion for this year. Twenty thousand American workers over the next five years may disagree. Back in the fall, Apple co-founder Steve Wozniak and Google head Sundar Pichai each announced initiatives to train people to work in tech.
Apple says it plans to bring back billions of dollars it has kept in tax havens overseas, and that it will pay a one-time tax of $38 billion on its overseas cash holdings. It will also invest $10 billion of that money in new data centers in the USA adding to the seven already in operation or planned. It will initially house employees who provide technical support for customers. We're also extending our efforts in support of coding education, ConnectED and STEAM programs.
We're using the Trump catchphrase because Apple's action is only possible thanks to the new tax arrangements that the U.S. president campaigned on, namely a one-off discount on repatriating foreign profits.
In his conversation with Cook, Cramer said the CEO emphasized the need for his company to be a leading corporate citizen and create jobs that will last through technological advances.