Tim Cook says that the construction of factory of Apple $ 600 billion will create a “domino effect”. But GIA technology

Apple CEO said recent investments of $ 600 billion in his business to build factories in the United States would create a “domino effect”, stimulating manufacturing in the country.

“We cannot be everywhere. I want us to be able to, but we put $ 600 billion to work in the next four years,” said Cook CNBCJim Cramer during a television interview on Monday. “And it is therefore an extraordinary commitment.”

Cook suggested that Apple’s “extraordinary commitment” in the next four years to build 79 factories in the United States could bring more companies to the communities in which they are built.

“This is the training effect,” said Cook. “There will be more companies to come. It’s a kind of domino thing. “

Apple has manufactured iPhones outside the United States since the creation of the product in 2007, the vast majority of the assembly taking place in China in the massive facilities of Foxconn. Foxconn, a manufacturer of Taiwanese multinational electronics contracts, has a Zhengzhou factory, which alone employs around 350,000 workers, produced up to 500,000 iphones per day and helps stimulate large -scale economic growth in the center of China.

Apple produces about 80% of iPhones bought in the United States in China, but would have transferred supply chains to India to avoid prices up to a chip agreement of $ 433 million. The Silicon Valley -based technological company has sent a value of $ 2 billion in $ in March, a record for the Computer Company Tata and Foxconn, according to Reuters.

Apple planned to move the assembly of most of the iPhones it sells in the United States by the end of 2026, Al Jazera reported in April.

Now Cook bets great on American manufacturing under the current administration, noting that the objective of President Donald Trump to obtain “more and more manufacturing” at the national level.

“I think most people look at (investment) and say:” It’s great that you are investing in America, “said Cook about the feeling of investors with the planned construction.

Dependence in Apple Asia

Despite Apple’s commitment to building factories, Scott Bickley, advisory member of the Info-Tech research group, said Fortune The technology giant manufacturing center will remain in Asia, due to factors such as the concentration of suppliers abroad, the labor scale and the cost of American workers compared to the offshore workforce.

“(These factors) all promote Asia remaining the heart of iPhone making in the predictable future,” said Bickley.

John Belton, portfolio director of the financial services company Gabelli Funds, said Fortune Most investments of Apple $ 600 billion were already reflected in the long -range financial planning of the company.

“The rechitect of a complex supply chain takes time,” said Belton.

The manufacture of certain components such as the cover glass and certain shavings will be revived, rather than the final assembly of the phones, which will remain in China – and to a lesser extent, India, added Belton.

“All of this should be considered more evolving than revolutionary for Apple global operations,” said Belton.

As for bringing more manufacturing competition to local communities once these factories have been built, recent reports have revealed a clear obstacle to a recasting of industry: there are simply no enough qualified workers. According to the Bureau of Labor Statistics, around 400,000 manufacturers are currently not completed, according to the Bureau of Labor Statistics.

“There is always the problem of the organization of the massive workforce required to assemble all these components in the finished iPhone,” said Weldon Dodd, engineer of distinguished solutions at Kandji, a software platform to manage and secure Apple devices for companies, told Fortune. “It is difficult to imagine where in the United States Foxconn could find a market with 300,000 workers or more available for rental.”

However, however, Bhasin Amritan, CEO of Astray, an Ai-Poweed Ai-Powed Ep: Fortune If Apple manages to withdraw its construction, “this will put pressure on other technological or material companies in the United States to invest in the” Made in America “model.”

Jamie Meyers, senior securities analyst at Laffer Tengler Investments, said Fortune Given the shortage of manufacturing labor and a complex global supply chain (Apple gets supplier parts and materials in more than 40 countries), it would be impossible to reproduce it at national level. However, this decision will open new manufacturing jobs.

“If the Americans want these jobs is another question,” said Meyers.

And, if more competition comes from the construction of factory, this will reflect the pressure of the Trump administration for domestic manufacturing, he said.

“Apple’s move to the United States was already planned and is now presented due to the position of administration towards domestic manufacturing,” said Meyers. “We do not think that it is Apple that will cause a domino effect, but it is a response to national and international policies.”

Apple did not immediately respond to FortuneComment request.

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