Apple CEO Tim Cook Evades Questions on Alleged Plans to Build Three 'Big' U.S. Factories

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Last week, United States President Donald Trump told The Wall Street Journal that Apple had plans to build three "big, big, big" manufacturing plants in the United States, a statement that allegedly came from Apple CEO Tim Cook.

Unsurprisingly, Cook was questioned about the president's statement during the question and answer portion of today's earnings call, and he deftly dodged it by highlighting Apple's overall efforts to increase jobs in the United States.

Apple CEO Tim Cook at the Executive Tech Summit at Trump Tower in December of 2016​

Cook said Apple has created two million jobs in the United States, across three separate categories. The first, responsible for about 2/3rds of those jobs, is the App Store and the Apple developer community.

Cook said Apple is making an enormous effort in this area by encouraging children and college students to get into coding through Swift-based curriculum that's been introduced in schools around the world.

The second category, according to Cook, is Apple's manufacturing purchases. Last year, Apple purchased $50 billion in goods and services from U.S. based suppliers, and has been aiming to increase that. Apple in May announced a $1 billion Advanced Manufacturing Fund meant to encourage innovation among U.S.-based manufacturers. Corning became the first recipient of the fund in mid-May, and Cook says the money will be used to expand the company's Kentucky plant to make innovative glass.

"There are several plants that can benefit from having some investment to grow, expand, or set up ship in the U.S. for the first time," said Cook. "We're excited."

The third category relates to Apple's own facilities in the United States, like its Cupertino-based campuses that employ thousands of employees. Cook didn't have much to say about this category, but he hinted at announcements coming later this year, potentially giving some weight to Trump's statement about job creation.

"Two thirds of our employee base is in the United States, despite only one third of revenue being here," Cook said. "We have some things we'll say about that later in the year."

Cook said that Apple does feel that it has a responsibility to create jobs in the United States. "We do view that we have a responsibility in the United States to increase economic activity and increase jobs. Apple could only have been created here," Cook said.

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Article Link: Apple CEO Tim Cook Evades Questions on Alleged Plans to Build Three 'Big' U.S. Factories
 

Relentless Power

macrumors Nehalem
Jul 12, 2016
32,947
33,788
"We're excited". Of course you're excited. You're exited 365 days a year. Parroting the same old rehearsed lines, that have zero value in them. Telltale signs of a weak and incompetent leader.
That "incompetent" leader has taken Apple
To great heights and created Jobs all over the country, making Apple the most profitable company in the world. Stop making it sound as if he is not capable of leading Apple. He is a leader and leading this Company accordingly.
 
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FactVsOpinion

macrumors 6502
Jul 27, 2012
307
452
But that is how Apple operates.

They invest in facilities and the companies that own the facilities, and then also buying products and services from those companies.

They don't do their own manufacturing with Apple-owned plants.
[doublepost=1501627217][/doublepost]
"We're excited". Of course you're excited. You're exited 365 days a year. Parroting the same old rehearsed lines, that have zero value in them. Telltale signs of a weak and incompetent leader.
He was saying they were particularly excited about a particular front. Nothing wrong with that.

You'll notice they don't say they are excited about the future of the iPod line; rather, perhaps extremely proud of its past.

What's more, Apple has as much right as any other company to express excitement. It is certainly NOT a "telltale sign" of incompetence. Give me a break.
 
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KPOM

macrumors Pentium
Oct 23, 2010
15,067
3,454
My guess is that the "3 factories" include the Foxconn facilities and perhaps Corning and another supplier.
 
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Pilgrim1099

Suspended
Apr 30, 2008
1,109
602
From the Midwest to the Northeast
But that is how Apple operates.

They invest in facilities and the companies that own the facilities, and then also buying products and services from those companies.

They don't do their own manufacturing with Apple-owned plants.
[doublepost=1501627217][/doublepost]

He was saying they were particularly excited about a particular front. Nothing wrong with that.

You'll notice they don't say they are excited about the future of the iPod line; rather, perhaps extremely proud of its past.

What's more, Apple has as much right as any other company to express excitement. It is certainly NOT a "telltale sign" of incompetence. Give me a break.
Hmm...you mean like when the late Nintendo CEO said in one infamous Wii U promotion video near the end, bowing and saying " PLEASE be excited for our new Wii U " in an extremely awkward manner when it turned out to be a dud? I remember this extremely well.

You just don't simply say you're excited about something you've no idea how to answer honestly when it's really beating around the bushes. It sounds like Tim's full of it if he keeps telegraphing the " excited this, excited that " line. It's a dodgy attitude. Trust me. I can smell a liar when a person keeps using that line over and over, unable to be more articulate in detail and sophistication.
[doublepost=1501628163][/doublepost]
That "incompetent" leader has taken Apple
To great heights and created Jobs all over the country, making Apple the most profitable company in the world. Stop making it sound as if he is not capable of leading Apple. He is a leader and leading this Company accordingly.
We'll see how he acts on the next keynote sweating like a pig regarding the iPhone 8, especially Phil who might attempt to insult our intelligence again. I'll bet you they're going to use a comedy introduction video in the start of the September keynote to allay any sense of fear coming from Apple, proving 'everything is all rosy' just because of the recent iphone 8 leak.

This September is THE keynote that will either tarnish his reputation, or not.
 

gumblecosby

macrumors 6502
Jun 22, 2010
296
5
Does anyone feel that these manufacturing plants will be quickly be automated in the near future? Would that be the only way to make manufacturing in the US feasible in order to keep prices down?
 
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iReality85

macrumors 6502a
Apr 29, 2008
891
1,716
Upstate NY
It seems to me that, at least, Apple and Trump share a similar design ethos: big and beautiful.

Big beautiful doors.

Big beautiful buildings.

Big beautiful glass windows.

As such, I expect that Apple's "big big big" manufacturing plants would be beautiful as well.
 

Alenore

macrumors 6502
Apr 7, 2013
423
426
Cook said Apple has created two million jobs in the United States, across three separate categories. The first, responsible for about 2/3rds of those jobs, is the App Store and the Apple developer community.

Cook said Apple is making an enormous effort in this area by encouraging children and college students to get into coding through Swift-based curriculum that's been introduced in schools around the world.
So, let's round that to 1.4 million jobs for app developers.
70 billion reversed to developers since the app store was launched (https://www.apple.com/newsroom/2017/06/developer-earnings-from-the-app-store-top-70-billion/)

70 000 000 000 / 1 400 000 = $50 000 in 9 years. And that is, if ALL developers are from the USA.
Can you say you created a job when you don't even make a 5 figure income out of it?
 

mossy

macrumors regular
Sep 11, 2013
157
47
Ireland
I suppose you want erratic nonsense and company plans thrown out for you to consume?
This statement is a legitimate response. Well the first part. We come to Mac Rumours for example - to find out whats happening (to consume). A few plans - well yea - I am all ears (unless you also meant "erratic company plans" - which would make the entire statement legitimate).

Are you even a shareholder?
You let yourself down here though. I could write a list the length of my arm of what is wrong with this statement - but it would take ages.

"We're excited" - buzz words are part of corporate communications. Now, he and his employees could also be genuinely excited. I'll give him the benefit of the doubt and go with the latter :)
 

Denmac1

macrumors 6502a
Apr 22, 2007
663
720
Lost in Space
I'm not thrilled with the direction Tim & Co have taken. Some thoughts:
1. No update for entry level Mac, as in Mac Mini. Last update 1020 days and crippled with minimal ability to update/upgrade
2. iMac Pro: Overuse of 'Pro' for too many reasons....and overpriced. I predict there will be quality issues
3. Promise of an 'improved Mac Pro"..Any word on this? See #2 above...Hmmmm.
4.Tim being excited with a 'pipeline' that doesn't seem to generate anything new and exciting. Promises, Promises...
5.Apple Music..use to get 'Radio' for free. Now have to deal with subscription. I like to own my music, not paying $10 a month to have to search/listen, deal with Urban DJ's. (IMHO)
6. Apple TV...where were we...???

At least Tim is not going to feed Trump's ego by committing to 'big, big, big factories' Manufacturing in USA is now down to IT and robotics. Jobs (Steve or otherwise) are not coming back in the numbers we used to have.

Too much money in the bank with not much to show....IMHO.

We have become a society of demanding instant gratification, but not willing to strive for making our USA a better place to live.

Rant out.....
 
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ThunderSkunk

macrumors 68030
Dec 31, 2007
2,952
2,489
Milwaukee Area
"Sure, we're excited about the prospect of building three new giant plants in the US; we'll obviously have to get our numbers guys on it, but if it works out, yeah, that'd be great!" is probably the least crazy thing you can get away with feigning support for that keeps you involved the discussions around the mad hatters table.
 

unobtainium

macrumors 68020
Mar 27, 2011
2,352
3,263
Even if they build a few factories, it's pure tokenism. Manufacturing is not coming back to wealthy developed countries.
 
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BaltimoreMediaBlog

macrumors 6502a
Jul 30, 2015
815
1,298
DC / Baltimore / Northeast
If the US tax cuts go through, Apple will be out of the Irish tax haven within minutes!
And also, that will be a strong blow to the European Union in general, which is largely based on failed socialism.

Apple will always be making some products in Asia, but they'll have absolutely no use for Ireland.

As for manufacturing, Apple has in the past actually BUILT Apple Macs in the US. Nobody seems to remember that.
With the extreme level of automation in factories today, there's no reason developed countries could not produce these things. It's more a matter of WANTING TO. Europe has given up. The US will not.
 

BaltimoreMediaBlog

macrumors 6502a
Jul 30, 2015
815
1,298
DC / Baltimore / Northeast
What about the gigantic Tesla plant?
With the Space X, Elon Musk's only real competitor is the incompetent US and Russian governments, proven failures at running a commercial capitalist business for various reasons.

Let's see how Elon Musk does with mainstream products against all the world's many capitalist automobile manufacturers, including the Japanese and S. Koreans.

We'll see. :D
 

Thunderhawks

Suspended
Feb 17, 2009
4,057
2,118
"We're excited". Of course you're excited. You're exited 365 days a year. Parroting the same old rehearsed lines, that have zero value in them. Telltale signs of a weak and incompetent leader.
Please enlighten us and mention just a few of your qualifications to lead Apple better than TC does.
You can't even seem to distinguish between marketing and PR bravado and corporate results.
 

mossy

macrumors regular
Sep 11, 2013
157
47
Ireland
If the US tax cuts go through, Apple will be out of the Irish tax haven within minutes!
And also, that will be a strong blow to the European Union in general, which is largely based on failed socialism.

Ehh - no they won't (not for that reason). Europe has a lot of red tape. They are best having a HQ here.
How is it a blow to the E.U if they never paid the taxes?????
 

unobtainium

macrumors 68020
Mar 27, 2011
2,352
3,263
Yes, in "wealthy developed countries" like the USA, real incomes (per Fed data) have gone nowhere since the mid '90s. Keep that up long enough and you will see guillotines. Is there an app for that?:cool:

https://fred.stlouisfed.org/series/MEHOINUSA672N
I didn't say anything about income inequality. It's a serious problem and Trump/the Republicans would be the last ones to solve it.* Either way, manufacturing is not returning to countries like the U.S., Canada, Western Europe etc. It's over.

*In case it's not clear, I meant Trump has no ability or desire to end income inequality. Bernie Sanders would've stood a better chance. Either way, manufacturing will not be the solution. Any new plants that open here are pure tokenism.
 
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