Cook pays "letter of allegiance" to Trump: Apple Inc. (AAPL.US) will increase its investment in the US to 600 billion US dollars.

Apple Inc. (AAPL.US) CEO Cook is using a familiar strategy to maintain Donald Trump's favor: expanding existing initiatives to show his support for the president's "Made in America" agenda. On Wednesday, Cook stood in the Oval Office with Trump and Vice President JD Wansheng to announce that Apple Inc. would increase its investment in the United States to $600 billion over the next four years, surpassing Trump's promise of $500 billion after winning a second term. The core of this expansion is a $2.5 billion investment in Apple Inc.'s long-time glass supplier Corning Inc. All iPhone and Apple Watch cover glass will be produced for the first time in the United States at Corning Inc.'s factory in Kentucky. Although Apple Inc. previously claimed that the iPhone glass originated from the United States, some of the glass was previously produced overseas. Trump announced, "Apple Inc. has some investments in other countries. I won't disclose which countries specifically, but there are definitely a few. Now they are coming back." He stated that the $600 billion investment is the "biggest to date." The iPhone maker also discussed increasing agreements focusing on semiconductor manufacturing, expanding deals with partners such as Samsung Electronics, Texas Instruments Incorporated, and Broadcom Inc. Apple Inc. named this effort the "American Manufacturing Plan" (AMP). In conclusion, these statements are enough to prove that Apple Inc. is focusing on the American market, but are not forcing it to make major changes. Corning Inc. has been supplying Apple Inc. since the first iPhone in 2007, and Cook has long promoted the use of American-made glass for iPhones. The new change is a slight expansion in scale. Apple Inc. is attempting to alleviate impending tariffs through these transactions. The Trump administration is allowing exemptions for tariffs on smartphones and electronic devices to expire, and new tariffs are being imposed on imported products from India - which could pose a potential issue for Apple Inc., as the company recently shifted iPhone assembly destined for the United States to India. Cook even capitalized on Trump's fondness for gold. He presented the president with a large circular Corning Inc. glass plaque inscribed with the president's name and embedded with 24K gold. The Apple Inc. CEO stated that the glass came from an assembly line in Kentucky, while the gold came from Utah. Cook also added that the plaque was designed by a former US Marine who worked at Apple Inc. Meanwhile, Trump announced a major incentive: he stated that companies investing in the United States - even if projects are still in the early stages - will receive partial tariff exemptions. Trump said, "The good news for companies like Apple Inc. is that if you build in the United States, or commit to building, you won't be charged anything." Even if Apple Inc. does not actually produce iPhones and other popular devices in the United States, its commitments are expected to meet this standard. Smartphone assembly - a costly and complex process involving parts assembly, testing, and packaging - will continue to be done in China, with India gradually increasing its role. Cook stated that this portion would be "temporarily held elsewhere." But "a lot of it comes from the United States, and we are very proud of that." Trump acknowledged that the assembly process "is done elsewhere and has been for a long time," but he reiterated his hope to one day bring this production stage to the United States. He said, "This is an important step towards the ultimate goal of ensuring that iPhones sold in the United States are also manufactured in the United States." Trump's existing tariffs have already impacted Apple Inc. The company stated last week that these tariffs would result in a loss of about $1.1 billion in the September quarter. However, Apple Inc. is working to avoid further costs, especially as it prepares to launch the iPhone 17 series next month. Cook may also be seeking Trump's support in other areas: the US Department of Justice is suing Apple Inc. for alleged antitrust violations, and in another case, Forbes threatened a $20 billion search deal with Alphabet Inc., a subsidiary of Alphabet Inc. Class C. The US government may also help Apple Inc. deal with new strict restrictions on the App Store in the EU. This is not the first time Apple Inc. has used statements about American manufacturing to promote Trump's priorities. In 2019, the company pledged to assemble the new Mac Pro in Texas. This wasn't a significant change: Apple Inc. has been producing the previous generation Mac Pro in the state since 2013. But this move helped the company obtain tariff exemptions. Earlier this year, after Trump returned to the White House, Cook announced Apple Inc.'s initial $500 billion investment pledge, accelerating the investments that began during President Joe Biden's term. At that time, Apple Inc. announced that it would start producing AI servers in Houston. On Wednesday, Cook stated that the first test equipment had come offline from the assembly line of that factory last month. "We will continue to build the core technology of our products in the United States."