Apple commits a significant investment of $100 billion towards its business ventures.
In a significant move, Apple has announced plans to invest an additional $100 billion in US production, as part of its new American Manufacturing Program (AMP). This brings the total US investment commitment to a staggering $600 billion over four years [1][3].
The AMP aims to bring more of Apple’s supply chain and advanced manufacturing—including components manufacturing—to the US. Key partners in this initiative include Applied Materials, Texas Instruments, Samsung, Corning, and Coherent [2][3]. Corning, a US glass manufacturer, is expected to benefit from this investment, particularly in the production of smartphone glass [4].
However, while component production and R&D are increasing in the US, the actual assembly of iPhones remains largely in Asia, particularly China. Moving full-scale iPhone assembly to the US would entail substantial cost increases and logistical challenges, potentially leading to higher consumer prices [2][4].
Apple is not expected to produce iPhones or iPad tablets in the USA, nor assemble them on finished parts in the USA. Instead, the focus seems to be on growing domestic advanced manufacturing and supply chains, possibly to mitigate tariff pressures and geopolitical risks [1][2][3][4].
The AMP also includes plans to hire 20,000 new employees in the USA, mainly in research and development [5]. Apple currently produces most iPhones sold in the USA in India, but the company has also expanded production in Vietnam [6].
Industry expert Patrick Moorhead is skeptical about Apple significantly shifting a large part of the value chain to the USA [7]. Apple CEO Tim Cook has previously stated that sufficient skilled workers cannot be found in the USA as in countries like China [8].
The increased investments come amidst tariffs imposed by Donald Trump on goods from India, with the intention of impacting Russia's financing of the war in Ukraine and its economy [9][10]. However, these tariffs are also likely to affect the cost of an iPhone produced in the USA, which is estimated to be around $3,500 [11].
Despite these challenges, Apple's commitment to increasing US manufacturing of iPhone components and related technologies is a significant step towards boosting American manufacturing and supply chain components. Whether it will lead to a major immediate shift of iPhone final assembly to the US remains uncertain.
[1] Apple to invest $100 billion in US manufacturing as part of new American Manufacturing Program (AMP) [2] Apple's $100 billion investment in US production: What it means for iPhone assembly [3] Apple's new American Manufacturing Program: A comprehensive guide [4] The cost of moving iPhone assembly to the US: A closer look [5] Apple to hire 20,000 new employees in the USA, mainly in research and development [6] Apple expands iPhone production in India and Vietnam [7] Industry analyst Patrick Moorhead: Apple's $100 billion investment unlikely to significantly shift value chain to the USA [8] Apple CEO Tim Cook: Sufficient skilled workers cannot be found in the USA as in countries like China [9] Donald Trump doubles tariffs on goods from India to 50% [10] Tariffs on goods from India: A strategy to pressure India regarding energy supplies from Russia [11] The cost of an iPhone produced in the USA: A breakdown
- The new American Manufacturing Program (AMP) by Apple plans to invest in US advanced manufacturing, including components manufacturing, utilizing technology for the production of iPhone components and related technologies.
- As part of the AMP, Apple intends to hire 20,000 new employees in the USA, specifically focusing on employment in research and development, indicating a commitment to technological advancement within the community.
