Apple to Contribute $350bn to the US Economy in Job Creation

[PlayStation 2]

Welp, guess we can't have political debate so I'll just say it loud and clear: don't mention politics unless you're prepared to take the heat for it.

 

Sources: https://www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/ and https://www.cnbc.com/2018/01/17/apple-announces-350-billion-investment-20k-jobs-over-5-years.html

Apple plans on investing $350bn into the US economy, bringing a lot of its overseas money back into the States.

Quote

Apple today announced a new set of investments to build on its commitment to support the American economy and its workforce, concentrated in three areas where Apple has had the greatest impact on job creation: direct employment by Apple, spending and investment with Apple’s domestic suppliers and manufacturers, and fueling the fast-growing app economy which Apple created with iPhone and the App Store. Apple is already responsible for creating and supporting over 2 million jobs across the United States and expects to generate even more jobs as a result of the initiatives being announced today.

Apple expects to create around 20,000 jobs in the United States within the next five years.

Apple also expects to grow their current US operations, growing their domestic partners by investing $5bn and investing money in the education field.

 

Why this was done? I'm not particularly sure but it seems to tie into them bringing back around $250bn of foreign cash back into the States.

In any case, neat that Apple's bringing back jobs. Hopefully this can spell a new-ish direction for the company after what I feel has been a pretty mediocre 2017 for them.

[Sauron]

Now if they also paid taxes...

[Energycore]

Thread Cleaned.

 

I should not have to say that bringing up political topics is forbidden especially when even slightly unrelated to the news at hand.

[Sniperfox47]

Good job Apple! You're claiming positive PR from expansions you were doing anyways! Great way to spin things

[themctipers]

probably replacing all those iPhone batteries because nobody knows you have to replace batteries

 

ill get my battery replaced in December.

[Orangeator]

8 minutes ago, Sauron said:

Now if they also paid taxes...

Less they pay in taxes more they have to pay employees, meaning more employees make plus those employees have income tax which apple technically paying (coming out of the wage before it gets to the employee but still tax nonetheless).

[Sniperfox47]

3 minutes ago, Orangeator said:

Less they pay in taxes more they have to pay employees, meaning more employees make plus those employees have income tax which apple technically paying (coming out of the wage before it gets to the employee but still tax nonetheless).

In an idealistic capitalist world maybe. Except in the real world that money just gets hoarded and stuck away in offshore bank accounts of a couple very specific high ranking executive employees and the top 8 or so primary shareholders.

[DrMacintosh]

Great, all for made in America. Hopefully they don’t increase prices as a result. 

 

Regardless its a good move for Apple. 

[TacoSenpai]

Now can we get some innovative products and something a little more than a $1000 emoji machine?

[dalekphalm]

14 minutes ago, Orangeator said:

Less they pay in taxes more they have to pay employees, meaning more employees make plus those employees have income tax which apple technically paying (coming out of the wage before it gets to the employee but still tax nonetheless).

Yeah I really don't think that's as big a factor as you think.

 

Apple currently already makes OVER $50 Bn USD in profit per year (That's after expenses, including payroll)

Source:

http://www.businessinsider.com/apple-profit-by-year-2015-10

 

So, Apple doesn't need lower taxes in order to afford to hire more people or pay higher wages.

[Dissitesuxba11s]

1 minute ago, LordTaco42 said:

Now can we get some innovative products and something a little more than a $1000 emoji machine?

It looks like more research is being funded to improve their Animojis.

Spoiler

 

It seems like most of these 20,000 jobs will be in the STEM field, so some education is needed to land these proposed positions.

[Sniperfox47]

25 minutes ago, Orangeator said:

Yeah you have zero proof of this happening with Apple. Baseless claim that sounds like it came out of the wolf of wall street.

http://fortune.com/2017/12/28/apple-ceo-tim-cook-bonus-fiscal-2017/

Quote

Cook’s incentive pay totaled $9.33 million for the year ended Sept. 30, the Cupertino, California-based company said Wednesday in a regulatory filing. He also took home $3.06 million in salary and a previously disclosed equity award of $89.2 million, bringing his total payout for the year to about $102 million.

 

[dalekphalm]

2 minutes ago, Sniperfox47 said:

http://fortune.com/2017/12/28/apple-ceo-tim-cook-bonus-fiscal-2017/

 

lol - his "Salary" is $3m USD, whereas his "bonuses" are $99m USD.

 

IMO - An "incentive" pay should be a little extra to make you want to do a good job, not 3 times your normal salary.

[Orangeator]

22 minutes ago, Sniperfox47 said:

http://fortune.com/2017/12/28/apple-ceo-tim-cook-bonus-fiscal-2017/

 

That is insane!

[mr moose]

It's good to see apple investing in jobs money and employment money,   also local revenue money and money money. Tax money money money   with money monies money. money...

[sazrocks]

3 hours ago, Sniperfox47 said:

In an idealistic capitalist world maybe. Except in the real world that money just gets hoarded and stuck away in offshore bank accounts of a couple very specific high ranking executive employees and the top 8 or so primary shareholders.

Isn’t what is happening here the opposite though? Apple moving money out of those offshore accounts and moving it into the US where it belongs?

[dalekphalm]

6 minutes ago, sazrocks said:

Isn’t what is happening here the opposite though? Apple moving money out of those offshore accounts and moving it into the US where it belongs?

Yeah but how can we attribute those changes to the lower tax, when Apple was already making multiple tens of billions of pure profit every year?

 

They could have afforded to hire more people already. They had big enough profit margins.

 

So rather I suspect their motives are something else. Either this was a need they determined internally, or a good PR move, or some other reason. 

[Drak3]

33 minutes ago, dalekphalm said:

So rather I suspect their motives are something else. Either this was a need they determined internally, or a good PR move, or some other reason

My vote does to giving China and their "Copyright/Patent laws" the middle finger.

[mr moose]

1 hour ago, sazrocks said:

Isn’t what is happening here the opposite though? Apple moving money out of those offshore accounts and moving it into the US where it belongs?

Do we know they are moving anything out of off shore accounts?  setting up shop on US soil is only a small part of the whole operation.

17 minutes ago, Drak3 said:

My vote does to giving China and their "Copyright/Patent laws" the middle finger.

Maybe they are learning from the whole gibson thing.

[Blake]

3 hours ago, Orangeator said:

Yeah you have zero proof of this happening with Apple. Baseless claim that sounds like it came out of the wolf of wall street.

Show me any example where an organisation that has had it's tax burden reduced, increased wages as a direct result? And not just the CFO/CEO.

 

Fact is you wont be able to. Corporations' executives have something known as fiduciary duties to their shareholders, which means unless they can prove they'll make more money for the shareholder, by paying taxes, it wont happen (this is very similar to the concept of corporate social responsibility or the 'triple bottom line', but this concept relies on the consumer having perfect knowledge of the market, which is a flaw in the capitalist theory).

 

The Exec team will be able to argue for greater remuneration as they can show a % drop/saved from reducing their tax burden.

 

If you look at industry average ROI, and compare it to 'taxible income' that apple (and google and most tech giants), you can assume 1 of the following:

1. They are very poorly run (i.e. 8 billion in revenue versus 85mill in tax in Australia).

2. They are moving money around to reduce their tax burden.

[SansVarnic]

2nd cleansing. Anymore and well this topic will be locked. 

[Techstorm970]

On 1/17/2018 at 3:29 PM, mr moose said:

It's good to see apple investing in jobs money and employment money,   also local revenue money and money money. Tax money money money   with money monies money. money...

[Eduard the weeb]

Isn't that like 1/3 of apples cash because if I remember correctly they are one of the closes companies to 1 trillion 

[dalekphalm]

3 minutes ago, Eduard the weeb said:

Isn't that like 1/3 of apples cash because if I remember correctly they are one of the closes companies to 1 trillion 

It's not like they will be spending it all at once. No doubt, this will be over a multi-year process.

[Eduard the weeb]

2 minutes ago, dalekphalm said:

It's not like they will be spending it all at once. No doubt, this will be over a multi-year process.

 Yeah I agree 

It would be cool to see how this effect the economy