Trump and Cook in conversation: Apple is planning high investments in the USA!

Trump and Cook in conversation: Apple is planning high investments in the USA!

President Donald Trump emphasized the positive outlook for the company in a conversation with Apple CEO Tim Cook. Trump expects Apple to increase its investments in the US, especially after the withdrawal of tariffs against China. The dialogue between Trump and Cook comes amid key challenges the company is addressing ahead of its 2027 product launches, Bloomberg's Dana Wollman reports.

Tim Cook, who has been active at Apple since his appointment as CEO and Director, brings extensive experience from various positions, including roles at IBM, Compaq and Intelligent Electronics. His academic background includes an MBA from Duke University and a bachelor's degree from Auburn University. Apple Inc. specializes in the development, manufacture and marketing of computer hardware and music storage media.

Financial challenges caused by trade policy

Apple is currently facing financial challenges caused by import tariffs imposed under Trump. These tariffs place a significant burden on the company's cost structure. CEO Cook announced that Apple expects additional costs of $900 million (approx. €800 million) in the coming fiscal quarter. These tariffs are particularly problematic for imports from China, where much of Apple's production takes place.

Total tariffs on Chinese goods could be as high as 145 percent, although tariffs on electronic products such as smartphones have been temporarily suspended. Nevertheless, Apple is already feeling effects in other product categories. Cook emphasized that trade tariffs directly affect the company's cost structure. Despite the challenges, Apple was able to minimize the impact last quarter by optimizing its supply chain and inventory, but there is uncertainty as to whether it can continue to do so in future quarters.

Cost management strategies

To meet the challenges, Apple plans to produce more than 50 percent of all iPhones sold in the US in India in the future. Almost all iPads, Macintosh computers, Apple Watch watches and AirPods for the US market are said to come from Vietnam. These strategic changes aim to reduce dependence on Chinese manufacturing facilities and reduce costs.

Despite the threat of additional costs, Apple presented positive figures in the last quarter, which was supported by advance smartphone purchases. Nevertheless, Apple shares fell by around two percent in after-hours trading. Cook's estimate of additional costs of $900 million per quarter could be adjusted depending on developments in the trade dispute.

A company spokesperson emphasized that Apple needs to develop strategies to deal with uncertainty. Experts also see signs that Apple is negotiating with suppliers and wants to develop fewer dependent components. The Apple case highlights the far-reaching global impact of trade conflicts on companies and their production sites. Cook has previously expressed concerns about trade tariffs and their impact on the company's competitiveness.

The future evolution of trade policy could be crucial for Apple and other global companies, as it may present new challenges and opportunities. Despite the uncertainties, Apple remains an influential company with a revenue distribution that is highly diversified across different segments and geographic regions.

Overall, the current situation surrounding Apple and Trump's statements are a clear indication of the complicated relationship between technology companies and political conditions. The coming months will show how these dynamics impact Apple's business strategies and investment decisions.