Tim Cook of Apple

President Donald Trump It has been made clear that he wants apple Made in the United States iPhone

CEO of Apple Tim Cook The commander is being comforted without final concessions.

Cooking on Wednesday Appear In the White House with Trump, the plan to announce plans to spend about $600 billion in the US within four years has not been announced iPhone made in the United States Trump wants, but Cook promotes Apple’s position in U.S. production.

Apple’s most valuable parts, such as glass and facial recognition sensors, are made by American companies that Apple has worked with for many years. Final assembly is only part of the iPhone production, but it is very critical.

“The last convention you are focusing on will be elsewhere,” Cook said Wednesday in the Oval Office.

Trump seems to be happy for the moment.

“He made a lot of components here and we’ve been talking about it,” Trump said. “The whole thing was built elsewhere and has been there for a long time in cost and everything, but I think we might inspire him to the point that he’ll bring it back one day.”

Experts say Cook’s announcement appears to be aimed at getting Apple to get tariffs in Trump’s crosshairs. Trump announces in public meeting that the government plans to impose tariffs on chips Their price doublesbut Apple (which relies on hundreds of different chips on its devices) will be exempt.

“The CEOs are realizing that they do have to do something, and what they find is that if they brag about the president without destroying the company, the problem can go away for a certain period of time,” said Peter Cohan, a professor of strategy and entrepreneurs at Babson College, who wrote a case study on Apple.

gambit worked. Apple stocks rose 5% on Wednesday and another 3% on Thursday.

“What Tim Cook showed in the first administration was a real dangerous water navigation,” said Nancy Tengler, CEO of Laffer Tengler Investments. “I think this news is very important symbolically because the president is looking for headlines.”

For example, Apple explain All its coverslips for iPhone and Apple Watch will be made from Corningin Kentucky, that would cost $2.5 billion on the job. It’s a powerful symbol – while the phone may be screwed together in China or India, in the United States, the surfaces that users touch will be made in the United States

But Apple has pointed out that Corning was a key U.S. supplier in the past. The company’s glass has been used on iPhones since its first release in 2007. While Apple does not normally allow its suppliers to talk about their relationship, former COO Jeff Williams was welcomed by Corning’s Glass in 2017 when it received an “investment” from the Apple Advanced Manufacturing Fund. Apple follows $250 million 2019 Commitment and $45 Millions in 2021.

Analysts are skeptical that partnerships can greatly improve Corning’s revenue. Corning “has already produced 100% cover glass for Apple phones and tablets,” Morgan Stanley analysts wrote Thursday, adding that Corning’s glass business, called featured materials, is worth about $2 billion a year.

Apple also highlighted its partnership with Coherent, a long-term laser supplier of Apple’s facial recognition hardware, which was established in Texas. Morgan Stanley fixed the business for about $100 million a year and said that Apple and Sony include Lumentum and Sony.

iPhone Maker says it expands with Texas Instruments Making chips in Texas and Utah. Texas Instruments has long provided iPhone chips, such as circuits that control USB interfaces or power monitors. Apple said it will work with another key parts supplier from Samsung, such as iPhone displays, to launch “innovative new technologies to make chips” without providing additional details.

Apple announced that even if they usually sell services or merchandise to Apple suppliers, it will work directly with companies in the semiconductor chain. Other partnerships are Application materialstool company, GlobalFroundRosschip foundries and global weapons from the United States Taiwan Semiconductor Manufacturing Company There are also Texas instruments with USA wafers, which is the starting point for a batch of chips.

Globalfouldries produces chips Broadcomprovides wireless chips for iPhone. Both will work with Apple to develop and manufacture 5G components in the United States

Meanwhile, Apple will buy millions of chips made by TSMC in Arizona, where it will become the factory’s largest customer. Cook joins former President Joe Biden’s factory In 2022 And committed to buying chips from the factory.

Apple says it will invest and become a customer in Arizona Amkor The installation of packaging and testing chips is the final stage before installation in a computer.

Apple also said it will expand existing data centers for artificial intelligence in North Carolina, Iowa, Nevada and Oregon. In the past, these data centers have highlighted these data centers in their spending commitments.

“New and extended engagement may not be exactly global revenue and outlook,” JPMorgan Chase analysts warned in a note Thursday, when Apple announced its shares to partners.

Trump has a different view.

After reading Apple’s list of commitments, the president said, “Oh, I love you doing this.”

Apple hardly has to worry about who will be responsible for its promises. The company is not going to ruin our spending, and most of Apple’s suppliers are Contract requirements Keep the information secret. Apple has not reported the cost of its final cost for its new campus in Austin, Texas or North Carolina.

Additionally, this $600 billion title number may include a large amount of regular fees.

apple explain In February, its $500 billion commitment included payments to U.S. suppliers, direct employment, data centers for Apple intelligence and corporate facilities, and Apple TV+ Productions spending in 20 states.

Apple began publicly announcing our spending during Trump’s first administration in 2018, About $70 billion per year. In February, the company Firm $125 billion per year. Wednesday’s announcement made $150 billion a year.

This is still a small part of Apple’s total spending.

In Apple’s fiscal year 2024, the company spent $210 billion on global sales costs and $57.5 billion on operating expenses, with nearly $275 billion in global capital expenditures of $9.45 billion during that period.

Teffler said she believes the newly announced spending is not the importance of Apple’s profitability, especially because it already has a relationship with companies like Corning.

“They will spend money somewhere,” Tegra said.

Wedbush analyst Dan Ives, formerly predict Wednesday’s announcement said a manufactured iPhone would cost billions of dollars in production and cost consumers $3,500. He said it was “the cost of doing business.”