Apple announced plans on Wednesday to invest another $100 billion in US manufacturing, as the company seeks to avoid President Donald Trump's tariffs.
The new commitment would bring its total pledge to invest in the US to $600 billion over the next four years. The company pledged in February to invest $500 billion and hire 20,000 workers.
Apple also announced an initiative called the American Manufacturing Programme to help accelerate its supply chain and move advanced manufacturing to the US.
"This includes new and expanded work with 10 companies across America," Apple chief executive Tim Cook said in a statement. "They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support."
The announcement comes after Mr Trump threatened to hit the Big Tech giant with a 25 per cent tariff for making its flagship devices outside the US.
Apple shares closed 5.10 per cent higher at $213.28 on Wednesday after initial reports of the company's investment pledge.
During the company's earnings call last week, Mr Cook told investors that it had taken a hit of about $800 million from tariff-related costs in the last quarter and about $1.1 billion this quarter.
He told analysts during the call that the “vast majority” of iPhones sold in the US come from India. Most other Apple products, such as MacBooks and iPads that are sold in the US, are made in Vietnam, he said.
“We obviously try to optimise our supply chain,” Mr Cook said at the time. “And ultimately, we will do more in the United States.”
Hours before the announcement, Mr Trump met Nvidia chief executive Jensen Huang at the White House before he was set to announce tariffs on semiconductor imports, Bloomberg reported.
Apple had planned this year to switch its assembly for all US-destined iPhones from China to India to avoid the escalatory tariffs Mr Trump had placed on Beijing.
During his visit to Qatar this year, Mr Trump said there was “a little problem” with Apple and recalled a conversation he had with Mr Cook in which the President said he did not want the company assembling devices in India.
India has recently been in Mr Trump's crosshairs. The President on Wednesday imposed a 25 per cent tariff on New Delhi for buying Russian oil. The new tariff, due to take effect in three weeks, comes on top of a previously announced 25 per cent tariff that was set to be implemented on Wednesday.
Mr Trump has accused the country of indirectly or directly buying Russian oil. India condemned the latest action as “unfair, unjustified and unreasonable”.
