Apple Invests $60 Billion in Texas Amid Shift in Manufacturing Strategy
Tim Cook's $60 billion bet on Texas is his final major act as Apple's CEO, marking a significant investment in American manufacturing. The announcement comes as Cook prepares to step down and become Executive Chairman on September 1, with John Ternus taking over as CEO.
The new facility will host Mac mini production alongside a manufacturing school, echoing comments from Apple's CFO and Cook himself. However, it's worth noting that the $60 billion figure is not entirely Apple's direct investment - Foxconn is making much of the capital investment at this Houston site, while Apple commits to buy what comes off the line.
This arrangement preserves Apple's balance-sheet flexibility, allowing the company to maintain its $147 billion cash position for buybacks. As Cook said during the July 30 earnings call, 'We want to build more than great products. We want to build a future of American manufacturing.'