So Apple just pulled the ultimate “please don’t tariff us” move, and honestly? It’s working like a charm.
Tim Cook rolled up to a press conference with Trump this week and basically said, “Hey, remember how you keep threatening to slap tariffs on our stuff? Well, what if we just… spent $600 billion in America instead?” And just like that, AAPL shot up 10%. Sometimes the simplest solutions are the best ones.
Here’s the deal: Apple’s committing another $100 billion on top of their previous $500 billion promise for US manufacturing over the next four years. They’re also planning to hire 20,000 more Americans through their American Manufacturing Plan (AMP). It’s like when your mom threatens to ground you, so you suddenly become the most helpful kid in the house.
But Wait, There’s a Catch
Before you start picturing iPhones rolling off assembly lines in Ohio, pump the brakes. Your iPhone is still getting made in China and Vietnam, thank you very much. Experts estimate a fully US-made iPhone would cost over $2,000, which would make even the most devoted Apple fanboy think twice.
What Apple IS doing is making sure every new iPhone and Apple Watch will have at least some US-made components. Specifically, that fancy cover glass? That’s coming from Kentucky now. It’s not everything, but it’s something – and apparently, it’s enough to keep the tariff wolves at bay.
The AI Elephant in the Room
Let’s be real – Apple’s been having a rough year. While everyone else was going crazy over AI, Apple showed up fashionably late to the party with “Apple Intelligence” and… well, let’s just say it wasn’t exactly the ChatGPT killer they hoped for.
The situation got so bad that Tim Cook had to hold an all-hands meeting basically admitting, “Yeah, we really need to figure out this AI thing.” Ouch. That’s like admitting you don’t know how to use TikTok at a Gen Z party.
But here’s where it gets interesting: rumors are swirling that Apple might acquire Perplexity, which is actually a big deal in the AI space. If that happens, Apple could go from AI also-ran to serious contender pretty quickly.
The Bottom Line
Apple’s stock was down nearly 10% earlier this year, hitting a low around $172 in April. But this manufacturing announcement, combined with the Perplexity acquisition rumors, has sparked the company’s best rally of the year.
Is this just expensive political theater? Maybe. But if it keeps Apple’s products affordable and gets them back in the AI game, investors don’t seem to care. Sometimes throwing money at a problem actually works – especially when you have Apple-sized pockets.
The market’s message is clear: when you’re sitting on a mountain of cash and facing political pressure, sometimes the best defense is a really, really expensive offense.