Apple’s statement did not say how it arrived at that number. However, the company said the $350 billion figure does not include Apple’s “ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.”
Apple, which has come under major criticism for building much of its popular products in China, announced a sweeping set of moves partially tied to the recent tax bill, including paying $38 billion in taxes from profits made overseas and opening another corporate campus.
Apple Inc. said it will bring hundreds of billions of overseas dollars back to the U.S., pay about $38 billion in taxes on the money and invest tens of billions on domestic jobs, manufacturing and data centers in the coming years.
Apple has the largest offshore cash reserves of any U.S. company
The iPhone maker said it also will make $30 billion in capital expenditures in the U.S. over the next five years, in part from opening data centers to feed growing demand for services like iCloud. And it will create over 20,000 new jobs at existing Apple campuses and a new one, initially for technical support, at an unnamed location, likely setting off a scramble among states and cities vying for bragging rights.
“It’s smart. Apple is one of the few companies that I believe, they believe this is the right thing to do, and they’re not just doing it to be clever corporate marketing people,” said Patrick Moorhead, principal analyst at Moor Insights & Strategy.
Apple unveiled a five-year investment plan in the United States on Wednesday that will create 20,000 new jobs and involve opening a second campus, the location of which will be announced later this year.
But in classic Apple fashion, there was at least “one more thing” to announce.
Apple, which likes to remind people it is the United States’ biggest taxpayer, said it will pay $38 billion in taxes on some of its overseas cash to the United States under the new tax plan.
The company did not say how much, if any, of its reported $250 billion stockpiles it planned to bring back to the U.S. However, the new tax plan has been designed to make such transactions easier.
“We are focusing our investments in areas where we can have a direct impact on job creation and job preparedness,” Chief Executive Officer Tim Cook said in the statement, which alluded to unspecified plans by the company to accelerate education programs.