Date
24 September 2017
Tim Cook says Apple is looking for new ways to help the country and that the company can only exist in the US. Photo: Reuters
Tim Cook says Apple is looking for new ways to help the country and that the company can only exist in the US. Photo: Reuters

Apple says it spent US$50 bln with US suppliers in 2016

Apple spent roughly US$50 billion last year at US-based suppliers including 3M and Corning, chief executive Tim Cook said on Tuesday, stressing the iPhone-maker’s commitment to US manufacturing.

Speaking at an annual shareholder meeting, Cook gave the previously undisclosed data at a time when Apple has come under pressure from President Donald Trump for building its iPhones in China. Apple also wants to work with Trump on issues like bringing back its offshore profits at lower tax rates, Reuters reports.

“We’re always looking for more ways to help our country. We know that Apple can only exist in the US,” Cook told shareholders.

Apple’s stock is trading at record highs on expectations of improved iPhone demand this year following a decline in sales in 2016.

Meanwhile, South Korea’s LG Electronics Inc said it would spend US$250 million to build a new factory in the United States, in a move that comes amid criticism from Trump about companies manufacturing abroad for US consumers.

The US administration has threatened an import tax, and Trump has attacked some of the world’s biggest companies, triggering many to make promises to invest more in the United States.

LG rival Samsung Electronics Co Ltd was also considering building a US manufacturing plant as a response to criticisms about imports from Trump, a source told Reuters earlier this month.

LG said its new US plant, an 829,000-square-foot facility to be located near Clarksville, Tennessee, will employ 600 full-time workers and produce washing machines starting in 2019.

LG expects the vast majority of washers for US consumers to be made in the Clarksville plant. Its washing machines sold in the United States have so far been made in Korea, China, Vietnam and Thailand. 

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CG/RA

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