Tim Cook: Apple creating $1B fund to bring manufacturing jobs to US

Pablo Tucker
May 7, 2017

CEO Tim Cook announced that the iPhone maker would create a $1 billion fund to boost the manufacturing industry in the United States.

"We are creating an advanced manufacturing fund", Cook said in an interview broadcast on CNBC. Cook said, "We give back through our work in the environment, in running the company on renewable energy". He did not provide any specific details about what exactly the fund would do to benefit U.S. manufacturing.

Meanwhile, Apple's quarterly report also brought good news to shareholders and investors as they can expect a return of capital to the tune of $50 billion, which was already approved for release by the company's Board of Directors. Cook also believes a company should give back and should have values because a company is a collection of people.

The announcements were the latest in a series of disclosures to highlight how Apple, the world's largest company by market valuation, contributes to job creation in the United States. And so to invest in the United States, we have to borrow.

Apple is highlighting its US presence at the same time lawmakers consider a major tax proposal by Trump that would let Apple, along with other large companies, bring back accumulated profits from overseas at potentially lower tax rates. On a conference call with analysts, Cook griped that an endless barrage of leaks about the next iPhone - branded alternately by Apple watchers as the "iPhone 8" or the "iPhone X" - appear to have curbed sales of the current iPhone 7.

I actually think comprehensive tax reform is so important to this economy. Ninety-three percent of Apple's $256.8 billion cash is held overseas.

Apple has reported second quarter revenues of $52bn, driven by strong demand for the company's flagship iPhone 7 smartphone. Apple earned $7 billion in revenue from services, almost $1 billion more than in the second quarter of previous year. Still, the windfall topped the company's own projection of at least $51.5 billion for the same period.

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