Did Apple CEO Tim Cook really tell Trump that the company is building a trio of U.S. factories?

Did Apple CEO Tim Cook really tell Trump that the company is building a trio of U.S. factories?
This past Tuesday, in an interview with the Wall Street Journal, President Donald Trump said that Apple CEO Tim Cook had promised Trump that he was going to build three "big, big, big" factories in the U.S. The president also said that Cook had called him to say that Apple was going forward with the U.S. factories. But Apple has historically strayed from using its own factories; the company currently owns just a single plant and that one is in Ireland.

Apple's use of contract manufacturers angers Trump, who called out Apple during the campaign for not making its mobile devices in the U.S. using domestic workers. Currently, only the Mac Pro rolls off an assembly line based in the states. Those factories building the computer might be found in Austin, Texas and Fremont, California, but they belong to the contract manufacturers.

One reason why Apple isn't expected to build one factory in the U.S. much less three plants, has to do with the supply chain set up that CEO Tim Cook put together in China. If Apple has to ship iPhone or iPad components from China to the U.S.to be assembled, it certainly would negatively affect Apple's profit margin. Also affecting the margin would be the higher paychecks Apple would have to pay workers in the U.S. As a result, Apple would have to accept a lower profit or raise prices. Carolina Milanesi, an analyst with the technology firm Creative Strategies, notes that "You don’t go from small facilities for a Mac to three plants."

So what about Trump's comments about being promised by Tim Cook that Apple is moving forward with plans to build the plants? We will leave that for Apple to respond to. We should point out that Apple has not confirmed the president's comments in any way.

Trump has tried to entice Apple to build factories in the states by hinting that he would allow U.S. corporations to repatriate funds held overseas at a lower tax rate for a one time tax holiday. Apple currently has $40 a share in overseas holdings, which works out to $250 billion. The current top tax rate for repatriated funds would be cut from 35% to 10% according to one version of the the president's proposal, and Apple would be one of the U.S. firms to benefit greatly from a one-time tax break.

source: WSJ

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25 Comments

1. NoAllegiance unregistered

Fake news, Tim Cook would never give Trump something that he will take credit from as if he had did anything to do with. Heck, most of these bills that he pass is stuff his advisers and the Republicans come up with.

9. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Silence is indeed golden. Tim properly hoping that Trump would get impreach before he would ever need to release an official statement.

12. ibend

Posts: 6747; Member since: Sep 30, 2014

Trump will make 3 factories in U.S.... with Apple's money..

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I see what you did there! Nice! ++++++

19. BullDozer

Posts: 154; Member since: Dec 18, 2015

Support Trump. Buy an iPhone.

25. cheetah2k

Posts: 2198; Member since: Jan 16, 2011

HAHAHAHA

2. HillaryClinton2020

Posts: 190; Member since: Feb 08, 2017

PLEASE APPLE BUILD FACTORIES IN BLUE STATES !! NO TO WISCONSIN

3. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Sorry to disappoint you, when it comes to manufacturing, the most qualified states are Wisconsin, Michigan, Indiana, Ohio, Pennsylvania. These were blue states won by Obama

10. cmdacos

Posts: 3959; Member since: Nov 01, 2016

The Wisconsin plant has nothing to do with Apple.

4. surethom

Posts: 1632; Member since: Mar 04, 2009

Trump produces more Fake News way more than the Media. But he is to stubborn to realise it.

5. trojan_horse

Posts: 5868; Member since: May 06, 2016

So Trump lied again... as usual.

6. kiko007

Posts: 7493; Member since: Feb 17, 2016

That meltdown his communications dude had tonight was absolutely f**king epic. I haven't seen a political train wreck like the current Trump admin. in my entire lifetime!

7. tedkord

Posts: 17182; Member since: Jun 17, 2009

It's actually worse than expected. Whodathunk?

22. Scott93274

Posts: 6030; Member since: Aug 06, 2013

Dude.... like seriously, the administration is such a cluster f$&%. I'm waiting for a "That's my Bush" spinoff with all Trump administration morons.

23. kiko007

Posts: 7493; Member since: Feb 17, 2016

I'm right there with you on that. This would make for a really interesting TV series, if it weren't so terrifyingly real at the moment. Hopefully our next President is as normal as Obama, or I might need to invest in heart medications lol.

8. AxelFoley unregistered

Trump 2020: Apple will build 3 plants in the US, Mexico is going to pay for them, and idiots will believe me.

* Some comments have been hidden, because they don't meet the discussions rules.

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