Apple’s Tim Cook convinced Trump to drop made-in-USA iPhone — for now

President Donald Trump He explained that he wants apple To make iPhone in the United States

Apple CEO Tim Cook He does what he can to satisfy the supreme leader, without presenting this final concession.

Cooking on Wednesday back In the White House with Trump to announce plans to spend about $ 600 billion over four years in Apple, it was not announced Made in USA iPhone Trump wants, but Cook got Apple’s position on US production.

Some of the most valuable parts in Apple, such as a glass and face recognition sensor, are made by American companies that have worked with them for years. The final assembly is only a small, albeit, very decisive, produced by iPhone.

“The final assembly focused on it, it will be in another place for another time,” Cook said on Wednesday at the Oval Office.

Trump seemed happy enough, at the present time.

“He makes many ingredients here, and we may talk about it,” Trump said. “The entire matter was prepared elsewhere, and there was for a long time in cost and everything, but I think we might motivate him enough even one day it will restore this.”

Experts said that Cook’s advertisement seemed to be designed to produce Apple from Trosshairs for the definitions. Trump announced during the general meeting that the administration planned to put a tariff on chips Weak priceBut Apple – which depends on hundreds of different chips of its devices – will be exempt.

“Executive presidents are aware that they have to do something, and what they discovered is that if they give the president something boasting without destroying their company, the problem may disappear for a certain period of time,” said Peter Kohan, a professor of strategy and entrepreneurship at Busbon College, who wrote case studies on Apple.

The maneuver worked. Apple shares rose 5 % on Wednesday and another 3 % on Thursday.

“What Tim Cook showed in the first administration was a real movement of treacherous water,” said Nancy Tengler, CEO of LaFFer Tengler Investments, who occupies Apple. “I thought this announcement was superior, because the president was looking for newspaper headlines.”

For example, Apple He said Each of its cover cup for iPhone and Apple watches will be made by CorningIn Kentucky, it will spend $ 2.5 billion on this effort. It is a strong symbol – while the phone may be collected in China or India, the surface that users touch all over the world will be made in the United States

But Apple referred to Corning as an embarrassing American resource in the past. The company’s glass has been used on iPhone since the first version in 2007. While Apple does not usually allow its suppliers to talk about their relationships, former Jeff Williams at Corning’s Glass in 2017, when she got an “investment” from the Apple Advanced Manufacturing Fund. I followed Apple with 250 million dollars Commitment in 2019 and $ 45 Million in 2021.

Analysts suspect that partnership can significantly improve Corning revenue. Morgan Stanley analysts on Thursday that Corning “is already produced 100 % of the cover glass for phones and tablets in Apple”, adding that the Corning Glass works called specialized materials are about two billion dollars a year.

Apple has also highlighted its partnership with Coherent, which has long been supplied for Apple face recognition devices, which are manufactured in Texas. Morgan Stanley connected the business by about $ 100 million annually, and said that Apple has options including Lumentum and Sony.

The iPhone maker said that she has expanded a partnership with her Texas tools To make chips in Texas and Utah. TEXAS Instruments has long chips for iPhone, such as circuits to control USB or energy interfaces. Apple said she will participate with Samsung, another major spare parts such as iPhone, to launch “innovative new chips”, without providing additional details.

Apple has announced that it will participate directly with companies in the semiconductor chain, even if they usually sell services or goods to Apple suppliers. Other partnerships with Applied materialsTools Company, GlobalfoundriesDaqqa, and Globalwafers America, which supplies Taiwan semiconductor manufacturer And Texas Instruments with MADE-In-usa chips, the starting point for a set of chips.

Globalfoundries makes chips for BroadcomThat provides wireless chips for iPhone devices. Both will work with Apple to develop and manufacture 5G components in the United States

Meanwhile, Apple will buy millions of advanced chips that TSMC made in Arizona, where you will be the largest factory agent. Cook joined former President Joe Biden at the factory In 2022 Commitment to purchase chips from the factory.

Apple said it will invest and become a customer in Arizona amkor The facility, which packs and testing chips, the final stage before installing on the computer.

Apple has also said that it will expand the current data centers of artificial intelligence in North Carolina, Iowa, Nevada and Oregon. These databases have been highlighted in the past in spending obligations.

While the Apple advertisement sent partner shares, JPMorgan analysts warned in a memorandum on Thursday that “the new and expanded links may not be completely increasing to global revenues and expectations.”

Trump was taking a different.

“Oh, I love to do this,” the president said, after reading a list of Apple obligations.

Apple does not worry only when it comes to those who will hold the company accountable for its promises. The company does not spend, and most of the Apple suppliers are Contractual is required To keep the information confidential. Apple does not report the amount of new universities in Austin, Texas or North Carolina in the end.

In addition, the address number is likely to include $ 600 billion in many regular expenses.

apple He said In February, its commitment of $ 500 billion included payments for American suppliers, direct employment, data centers for Apple Intelligence and corporate facilities, as well as spending on Apple TV+ Productions in 20 states.

Apple started announcing our spending publicly during the first management of Trump in 2018, at a rate About 70 billion dollars per year. In February committed To 125 billion dollars per year. On Wednesday’s announcement, this number raises to $ 150 billion annually.

This is still a small part of Apple spending.

In 2024 Apple, the company spent $ 210 billion worldwide on the cost of sold goods, $ 57.5 billion on operating expenses and $ 9.45 billion of capital expenditures compared to about $ 275 billion in global spending during this period.

TEFFLER said she does not think that newly announced spending will be material for Apple’s profit, especially as she already has relationships with different companies such as Corning.

“They will spend money somewhere,” Tigler said.

Wedbush Dan Eve analyst, who was previously Propagate IPhone in the United States of America said it would cost billions of billions and let consumers pay $ 3500, and he said Wednesday’s ads to a very different approach. He said it’s “the cost of doing business.”