When it comes to flagship American companies, GE and Walmart have taken a pounding in recent years. But Apple appears here to stay. After coming roaring back from relative obscurity with the breakthrough of the iPhone, Apple has continued to build on that success, making all the right moves to stay current as the market shifts.
Now, the company that captured the imagination of the world as to what might be possible with consumer electronics says it has plans to make some major investments right here at home. Thanks to changes in U.S. tax law, Apple says it will pay $38 billion in taxes on some cash the company has been storing overseas. Plus, Apple has promised to bring 20,000 new jobs as well as a $30 billion infrastructure investment over the next few years.
As hedge fund manager Mark Angelo of Yorkville Advisors notes, “That’s not to say Apple is tremendously happy about the first part of the deal. The move is in response to new requirements that will no longer allow American companies to avoid paying taxes on international profits simply because the cash is being held offshore. The carrot to go with that stick is a lower corporate tax rate.”
The net result will be a major windfall for Apple, who has promised to share the wealth with its workforce. According to a recent press release, Apple will offer $2,500 stock bonuses to employees across the globe in celebration of the changes in the tax code.
In further good news, Apple is also promising to build or improve several facilities in the country. The new facility is expected to offer tech support, however, no other details were made available. Most market watchers expect that effort to grow into what Apple refers to as “a campus” which is multiple facilities in a single location that work on everything from customer service to design to development. Apple currently has two such campuses: in Silicon Valley and Austin.
Additional new facilities will include data centers to bolster Apple’s capacity for customers of Siri, iMessage, and Apple Music. Nevada and Iowa are already on the list for new data centers, and there could be others.
What will these investments mean for Apple in the long run? And, how will their plans be influenced by current trends in consumer technology? Apple has built its reputation on being the industry innovator, but there are several new big name players in the market, and competition is definitely tightening up.
Ronn Torossian is one of America’s foremost Public Relations executives as founder/CEO of 5WPR, a leading independent public relations Agency. The firm was honored as PR Firm of the Year by The American Business Awards, and has been named to the Inc. 500 List. Torossian is author of the best-selling "For Immediate Release: Shape Minds, Build Brands, and Deliver Results with Game-Changing Public Relations." For more of Ronn Torossian's reports, Go Here Now.
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