Home Strategy Apple to repatriate overseas cash stash, invest heavily in US
Apple to repatriate overseas cash stash, invest heavily in US Featured

Apple will pay taxes of about US$38 billion in order to repatriate the US$246 billion in cash it holds overseas, the company said in a statement on Wednesday.

The amount has been calculated based on a recent change to US tax law which gives companies the chance to bring back profits which are stashed overseas after paying tax of 15.5%.

The announcement was made as part of a number of investment decisions made public, which the company said would collectively come to about US$350 billion over the next five years. It came on the day when Apple broke ground on a new facility in Reno which will support existing facilities in the state of Nevada.

The tax payment, capital expenditure and and investments in American manufacturing will make up about US$75 billion of the direct investment.

Apple said it would invest more than US$30 billion in capital expenditure and create more than 20,000 new jobs. The company already employs 84,000 people in the US.

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Apple will spend an estimated US$55 billion with US suppliers and manufacturers in 2018.

An additional Apple campus will be set up in a location yet to be announced to provide technical support. More than US$10 billion will be invested in data centres in the US.

Last year, US President Donald Trump said that Apple chief executive Tim Cook had promised he would build “three big plants, beautiful plants", in the US.

A small part of Apple's products are made in the US on contract. Flex makes Mac computers in Austin, Texas, and Quanta Computer makes Macs in Fremont, California.

But most Apple products are assembled in China, mainly by Foxconn Technology, which makes the iPhone and a number of other products.

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Students learn to code with Swift, a simple and fast open source coding language for apps that run on iOS, macOS, watchOS and tvOS.

In Wednesday's statement, Apple also said it would increase its Advanced Manufacturing Fund from US$1 billion to US$5 billion.

"Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Cook.

“We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness.

"We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”

Photos: courtesy Apple

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the sitecame into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

 

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