Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.
Final assembly will be in Texas, and only for servers that Apple is using in their own facilities. All the pieces will still be imported, already matched and boards fully assembled, just needing to be put in the shells. In actuality, probably nothing changes from what Apple was already doing and planning. But Trump likes his boasting moments and Apple is giving him one he'll be allowed to take credit for.
Exactly! This is all part of their plans from 2017 during the 1st Mango administration, and 2021 at the start of the Biden administration.
As the first Trump administration ratcheted up tariffs on China in 2019, Apple began shifting some of its manufacturing to Vietnam, India and other Asian countries. But it didn’t bring any of that production back to the United States.
[ ... ]
The investment represents $39 billion in additional spending annually above what Apple promised to spend on employees and suppliers in the United States in 2021, [Gene Munster, managing partner at Deepwater Asset Management] said. It is in line with Apple’s average annual increase in U.S. investment to support its growth since 2017. And the 20,000 jobs that Apple said it would add is in line with the number of people that it would hire over a four-year span in the United States, as well.
Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.
So, either you did not read the article, or your reading comprehension is in the toilet! Nice!
Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.
The servers aren't for sale so that isn't a factor in that particular regard. They are for in-house use so Apple can swallow the costs. They were built outside the US previously for good reason.
Now, with tariffs and all, and also federal or state incentives, it probably works out as acceptable to do the manufacturing on US soil.
Reducing supply chain external interplay (and possible interference) is also becoming a hot topic so the more manufacturing is done at home makes sense as long as it doesn't break the bank to do so.
I agree that 20,000 jobs is a drop in the ocean but anything is better than nothing. How many will go to US citizens is another matter but I'm sure that Cook pushed back on Trump thinking in that regard in their meetings in order for Apple to be able to hire whoever is needed with little red tape.
Most of this announcement is probably not really Trump related. The server farms (Apple manufactured or not) were probably in the final stages of planning before Trump got back into the White House.
Good news today from Apple and good news from Merz in Germany. On the tech side of things it’s very good news for Apple to design/engineer their own servers, and hopefully they will stop leaving money on the table in this area of computing, not a direct competitor yet but Nvidia is currently building barn burning high wattage solutions which will be unsustainable going into the future, hopefully Apple will be able to take advantage of that shortcoming in time.
Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.
At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost. Tim will worked harder for this great American tax paying company.
Sounds like you're not aware that the GOP plans on doing a $4.5 trillion tax cut that primarily benefits corporations and the wealthy. They're going to extend the $2 trillion cut from 2017 and add another $2.5 trillion on top. Keep in mind that the $2 trillion cut from 2017 was in place during the entire Biden administration. So if you didn't like the Biden economy, the ineffectiveness of that tax cut was part of it.
The new taxcuts are mostly an extension of the exisiting tax law from 2017. The lowering of the corporate taxes brought the US from 2nd highest in the OECD to the middle of the pack and stopped the corporate inversions, which every liberal conveniently ignores. BTW, tax receipts are at al time highs. Seems obvious but apparently needs to be stated, that all tax cuts go mostly to those who earn more money because they also pay the highest amount taxes and at the highest tax rates (The US has a highly progressive income tax system). This very simple 4th grade mathematics seems beyond most liberals and Democratic Congress peoples comprehension - or so they pretend. They beleive a tax cut means people that pay zero or almost zero in income taxes need to get thousands of dollars back from the govt, tax cuts are for people that pay taxes, it's not govt welfare.
Let me know when you get to 5th grade mathematics, then maybe we can get into how I use the system to reduce my effective tax rate from nearly 40% (federal and state) to well into the single digits. This is what the wealthy do and you not knowing this either means you're a rube or you're lying.
9secondkox2 said: Oh, Tax cuts are bad thing now? LOL
Tax cuts are tax cuts. Not increased. That’s a great thing.
Tax cuts are good for everyone. And before you cry about wealthy people getting a big break, you have to realize how tax brackets work and how much of a ripoff taxes are currently. Recently took a big career jump. Pay went up by 25,000/year.
Was so excited. Then I got my first paycheck. Was the same as before. All due to my new friend, Mr. New tax bracket. So I’m genuinely happy for anyone and everyone (including wealthy people) who get a tax break. The bracket system needs to disappear.
And if corporations get a big tax break, that’s a win for literally everyone as they save money and don’t have to keep jacking up prices to stay profitable.
Tax cuts without spending cuts are a bad thing and not funny at all. The GOP/Trump 2017 tax cuts are responsible for 25% of the national debt, because no commensurate spending cuts were made. Yes, tax revenue is up, but government spending is up far more. Those tax cuts contributed to inflation, because they put non-existent money in everyone's pocket. The result is: Trump is the world's biggest spender. Corporations were doing just fine before the 2017 cuts and unemployment was at a good level, too, of about 3%. What the cuts allowed was for corporations to buy back shares--which they had promised not to do--which helped make the wealthy even wealthier and everyone else poorer. As has also been noted here, the wealthy have far more options for avoiding taxes than middle-income earners do. Trump didn't bankrupt two casinos without more than a little ineptitude. The supposed savings so far by DOGE are highly exaggerated, inaccurately characterized, opaque (not transparent at all), risky, chaotic, self-serving for Musk and other corporations, and wholly insufficient to justify maintaining the 2017 cuts. Oh, did I mention that the "process" Musk/DOGE is using is also illegal? It's illegal. Congress passed the 1946 Administrative Procedures Act and the 1974 Impoundment Policies Act that establish how Congressionally authorized expenditures are to be reviewed and potentially modified. Trump has done nothing to help ease inflation, which I believe was his number one priority. His immigration efforts are also not doing well and are a mess, with Obama and Biden having performed better without the unnecessary hoopla.
Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.
At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost. Tim will worked harder for this great American tax paying company.
Sounds like you're not aware that the GOP plans on doing a $4.5 trillion tax cut that primarily benefits corporations and the wealthy. They're going to extend the $2 trillion cut from 2017 and add another $2.5 trillion on top. Keep in mind that the $2 trillion cut from 2017 was in place during the entire Biden administration. So if you didn't like the Biden economy, the ineffectiveness of that tax cut was part of it.
The new taxcuts are mostly an extension of the exisiting tax law from 2017. The lowering of the corporate taxes brought the US from 2nd highest in the OECD to the middle of the pack and stopped the corporate inversions, which every liberal conveniently ignores. BTW, tax receipts are at al time highs. Seems obvious but apparently needs to be stated, that all tax cuts go mostly to those who earn more money because they also pay the highest amount taxes and at the highest tax rates (The US has a highly progressive income tax system). This very simple 4th grade mathematics seems beyond most liberals and Democratic Congress peoples comprehension - or so they pretend. They beleive a tax cut means people that pay zero or almost zero in income taxes need to get thousands of dollars back from the govt, tax cuts are for people that pay taxes, it's not govt welfare.
"The new taxcuts are mostly an extension of the exisiting tax law from 2017." The 2017 cuts were $2 trillion. The 2025 cuts would add another $2.5 trillion on top of that. Keep in mind that the stimulus package at the height of the Great Recession was less than $900 billion. "The lowering of the corporate taxes brought the US from 2nd highest in the OECD to the middle of the pack" That's the statutory rate. Corporate taxes as a share of GDP in the United States are 1.6%. Only Italy has a lower rate than that in the G7.
"Seems obvious but apparently needs to be stated, that all tax cuts go mostly to those who earn more money because they also pay the highest amount taxes and at the highest tax rates (The US has a highly progressive income tax system)."
There is a statutory rate and there is an effective rate. The effective rate for large/profitable corporations in the U.S. is only around 9%.
"This very simple 4th grade mathematics seems beyond most liberals and Democratic Congress peoples comprehension - or so they pretend. They beleive a tax cut means people that pay zero or almost zero in income taxes"
Individual income taxes are about 52% of U.S. revenue. Social Security and Medicare taxes are around 35%. Corporate income taxes are around 9%. Use your own math skills to determine which number is the lowest.
Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.
9secondkox2 said: Oh, Tax cuts are bad thing now? LOL
Tax cuts are definitely "a bad thing" when you're claiming to do them as a stimulus for the general economy. Every dollar that is put towards the cut will only generate a fraction of a dollar in stimulus (meaning direct spending into the economy on goods and services). Why? Because recipients won't actually spend 100% of the cut on goods and services. They'll save some of the money. That fraction of a dollar gets even smaller if you give the cuts to people who are wealthy or to corporations.
The more effective way to stimulate the economy is to do direct spending programs like infrastructure. Every dollar that goes towards infrastructure will generate more than a dollar in stimulus. Why? Because 100% of the money will be spent on the infrastructure project and the completed project will contribute to future economic growth beyond the original money that was spent. An example of a country that focused on infrastructure spending and not tax cuts to stimulate growth is China.
Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.
Because Foxconn Industrial Internet has an engineering / R&D facility / manufacturing presence in Houston, and the Apple engineers aren't that far away in Austin. I'm sure Tim has thought about all these questions and more. Announcements from Apple don't just come out of thin air.
Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.
The servers aren't for sale so that isn't a factor in that particular regard. They are for in-house use so Apple can swallow the costs. They were built outside the US previously for good reason.
Now, with tariffs and all, and also federal or state incentives, it probably works out as acceptable to do the manufacturing on US soil.
Reducing supply chain external interplay (and possible interference) is also becoming a hot topic so the more manufacturing is done at home makes sense as long as it doesn't break the bank to do so.
I agree that 20,000 jobs is a drop in the ocean but anything is better than nothing. How many will go to US citizens is another matter but I'm sure that Cook pushed back on Trump thinking in that regard in their meetings in order for Apple to be able to hire whoever is needed with little red tape.
Most of this announcement is probably not really Trump related. The server farms (Apple manufactured or not) were probably in the final stages of planning before Trump got back into the White House.
Good news today from Apple and good news from Merz in Germany. On the tech side of things it’s very good news for Apple to design/engineer their own servers, and hopefully they will stop leaving money on the table in this area of computing, not a direct competitor yet but Nvidia is currently building barn burning high wattage solutions which will be unsustainable going into the future, hopefully Apple will be able to take advantage of that shortcoming in time.
Apple designs / engineers their own servers with lots and lots and lots of engineering design & research & testing support from Foxconn Industrial Internet. Apple does not leave money on the table in this area of computing - they have designed / engineered their own servers for many years. But they are used internally and not for consumer or enterprise use.
This was surely money that was already going to be spent in the US. It's lip service. Nothing more.
Apple doesn't make decisions like this in four weeks time.
Cook walked into the White House, told the president about things that Apple was already planning to do, and because Trump is such a narcissist, Cook had no problem convincing Trump the whole thing was his idea. Now that Trump thinks he convinced Apple to do all those things, don't be surprised if he looks on them favorably and makes a carve-out in his tariffs for Apple.
Recently took a big career jump. Pay went up by 25,000/year.
Was so excited. Then I got my first paycheck. Was the same as before. All due to my new friend, Mr. New tax bracket. So I’m genuinely happy for anyone and everyone (including wealthy people) who get a tax break. The bracket system needs to disappear.
.
The U.S. used a graduated/progressive tax system and what you are describing, getting a 25k raise but your net pay remains the same, can’t happen unless one of the following occurred.
1. Your employer is doing its withholdings incorrectly.
2. You increased some sort of deduction (maxing out a 401k example.)
I guess the other option is you actually don’t understand how a graduated/progressive tax system works and just made up the story.
Recently took a big career jump. Pay went up by 25,000/year.
Was so excited. Then I got my first paycheck. Was the same as before. All due to my new friend, Mr. New tax bracket. So I’m genuinely happy for anyone and everyone (including wealthy people) who get a tax break. The bracket system needs to disappear.
.
The U.S. used a graduated/progressive tax system and what you are describing, getting a 25k raise but your net pay remains the same, can’t happen unless one of the following occurred.
1. Your employer is doing its withholdings incorrectly.
2. You increased some sort of deduction (maxing out a 401k example.)
I guess the other option is you actually don’t understand how a graduated/progressive tax system works and just made up the story.
I recall being given that same BS about "I got paid more but took home less because of my new tax bracket" by dumbass shift or store managers at at least one shitty ass job I worked at when I was an teenager and probably a young adult, but 1) it never really made sense to me so I looked it up and quickly found out that it wasn't correct true (and that was before the internet), and 2) haven't heard that the OP claims for a very long time.
Recently took a big career jump. Pay went up by 25,000/year.
Was so excited. Then I got my first paycheck. Was the same as before. All due to my new friend, Mr. New tax bracket. So I’m genuinely happy for anyone and everyone (including wealthy people) who get a tax break. The bracket system needs to disappear.
.
The U.S. used a graduated/progressive tax system and what you are describing, getting a 25k raise but your net pay remains the same, can’t happen unless one of the following occurred.
1. Your employer is doing its withholdings incorrectly.
2. You increased some sort of deduction (maxing out a 401k example.)
I guess the other option is you actually don’t understand how a graduated/progressive tax system works and just made up the story.
I recall being given that same BS about "I got paid more but took home less because of my new tax bracket" by dumbass shift or store managers at at least one shitty ass job I worked at when I was an adult and probably a young adult, but 1) it never really made sense to me so I looked it up and quickly found out that it wasn't correct true (and that was before the internet), and 2) haven't heard that the OP claims for a very long time.
Do you remember during Obama's presidency when Obama was talking about letting the Bush tax cuts expire for couples whose adjusted income was over $ 250k or singles that were over $ 200k, and people online (it's never a person you meet in real life) were saying they were refusing pay increases past $ 249k and $199k because if they went over they would get paid less? It was the quickest way to identify people that didn't make anything close to $ 250k/$200k and had no idea how taxes actually work.
Recently took a big career jump. Pay went up by 25,000/year.
Was so excited. Then I got my first paycheck. Was the same as before. All due to my new friend, Mr. New tax bracket. So I’m genuinely happy for anyone and everyone (including wealthy people) who get a tax break. The bracket system needs to disappear.
.
The U.S. used a graduated/progressive tax system and what you are describing, getting a 25k raise but your net pay remains the same, can’t happen unless one of the following occurred.
1. Your employer is doing its withholdings incorrectly.
2. You increased some sort of deduction (maxing out a 401k example.)
I guess the other option is you actually don’t understand how a graduated/progressive tax system works and just made up the story.
I recall being given that same BS about "I got paid more but took home less because of my new tax bracket" by dumbass shift or store managers at at least one shitty ass job I worked at when I was an adult and probably a young adult, but 1) it never really made sense to me so I looked it up and quickly found out that it wasn't correct true (and that was before the internet), and 2) haven't heard that the OP claims for a very long time.
...It was the quickest way to identify people that didn't make anything close to $ 250k/$200k and had no idea how taxes actually work.
This was surely money that was already going to be spent in the US. It's lip service. Nothing more.
Apple doesn't make decisions like this in four weeks time.
Cook walked into the White House, told the president about things that Apple was already planning to do, and because Trump is such a narcissist, Cook had no problem convincing Trump the whole thing was his idea. Now that Trump thinks he convinced Apple to do all those things, don't be surprised if he looks on them favorably and makes a carve-out in his tariffs for Apple.
Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's dcgoing to build the facility? Not the hardest workers from south of the border. trump made sure of that.
The servers aren't for sale so that isn't a factor in that particular regard. They are for in-house use so Apple can swallow the costs. They were built outside the US previously for good reason.
Now, with tariffs and all, and also federal or state incentives, it probably works out as acceptable to do the manufacturing on US soil.
Reducing supply chain external interplay (and possible interference) is also becoming a hot topic so the more manufacturing is done at home makes sense as long as it doesn't break the bank to do so.
I agree that 20,000 jobs is a drop in the ocean but anything is better than nothing. How many will go to US citizens is another matter but I'm sure that Cook pushed back on Trump thinking in that regard in their meetings in order for Apple to be able to hire whoever is needed with little red tape.
Most of this announcement is probably not really Trump related. The server farms (Apple manufactured or not) were probably in the final stages of planning before Trump got back into the White House.
Good news today from Apple and good news from Merz in Germany. On the tech side of things it’s very good news for Apple to design/engineer their own servers, and hopefully they will stop leaving money on the table in this area of computing, not a direct competitor yet but Nvidia is currently building barn burning high wattage solutions which will be unsustainable going into the future, hopefully Apple will be able to take advantage of that shortcoming in time.
Apple designs / engineers their own servers with lots and lots and lots of engineering design & research & testing support from Foxconn Industrial Internet. Apple does not leave money on the table in this area of computing - they have designed / engineered their own servers for many years. But they are used internally and not for consumer or enterprise use.
Apple has left money on the table in this area of computing (defined as not making any Mac servers at all) and by not doing anything in this market a market that they have all of the in the house resources to compete in, OS and design engineering and hardware, the very fact that last year when Apple announced at WWDC 2024 Apple Intelligence, and indicated they they were using the M2 Mac Studio Ultra, with future iterations M4, M5 and beyond as servers, means there will be servers available to the public in time.
For that to happen you have to build them first and there will be a demand among small, medium and larger sized businesses for whatever server Apple comes up with using Apple Silicon, Apple will not be able to hold back it is a very good sign that they are building in-house servers again particularly with all the advantages that they have with controlling both the OS and the hardware design, but for that to happen Apple has to build them and now they are.
Way to lie down and be counted. Exactly the sort of “Can’t Do” attitude that poisons us here in Europe. Believe it or not, some of us still look to you lot for a bit of testosterone fuelled inspiration.
I’d *** swim the Atlantic and walk the rest of the way for a job at that place.
No way on God’s earth Cook agreed to anything that wasn’t fully in Apple’s interest. The media may like to portray these people as children but the sharp end of these business deals is about as real as it gets.
Why? It is just a production job where you would be doing the same thing over and over again. You aren’t going to be designing or inventing anything.
Keeping servers in the states makes a lot of sense. They wouldn’t have them in China. They would never have them in Russia. And housing them anywhere in the EU means that they’d have to be subject to their laws. If the servers are in the United States, they can shut off any access to them based on laws and regions. I’m a little worried about the Houston installation because Texas’s grid is so unpredictable / unreliable.
Comments
Wouldn't call that job creation.
The 2017 cuts were $2 trillion. The 2025 cuts would add another $2.5 trillion on top of that. Keep in mind that the stimulus package at the height of the Great Recession was less than $900 billion.
"The lowering of the corporate taxes brought the US from 2nd highest in the OECD to the middle of the pack"
That's the statutory rate. Corporate taxes as a share of GDP in the United States are 1.6%. Only Italy has a lower rate than that in the G7.
"Seems obvious but apparently needs to be stated, that all tax cuts go mostly to those who earn more money because they also pay the highest amount taxes and at the highest tax rates (The US has a highly progressive income tax system)."
There is a statutory rate and there is an effective rate. The effective rate for large/profitable corporations in the U.S. is only around 9%.
"This very simple 4th grade mathematics seems beyond most liberals and Democratic Congress peoples comprehension - or so they pretend. They beleive a tax cut means people that pay zero or almost zero in income taxes"
Individual income taxes are about 52% of U.S. revenue. Social Security and Medicare taxes are around 35%. Corporate income taxes are around 9%. Use your own math skills to determine which number is the lowest.
The more effective way to stimulate the economy is to do direct spending programs like infrastructure. Every dollar that goes towards infrastructure will generate more than a dollar in stimulus. Why? Because 100% of the money will be spent on the infrastructure project and the completed project will contribute to future economic growth beyond the original money that was spent. An example of a country that focused on infrastructure spending and not tax cuts to stimulate growth is China.
Apple does not leave money on the table in this area of computing - they have designed / engineered their own servers for many years. But they are used internally and not for consumer or enterprise use.
Cook walked into the White House, told the president about things that Apple was already planning to do, and because Trump is such a narcissist, Cook had no problem convincing Trump the whole thing was his idea. Now that Trump thinks he convinced Apple to do all those things, don't be surprised if he looks on them favorably and makes a carve-out in his tariffs for Apple.
I guess the other option is you actually don’t understand how a graduated/progressive tax system works and just made up the story.