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Apple's (AAPL) $500 billion investment into US manufacturing over the next four years is being seen as a strategic move to align with political objectives and mitigate risks from the ongoing US-China trade tensions. Apple CEO Tim Cook stated the iPhone maker is "bullish on the future of American innovation."
D.A. Davidson Head of Technology Research Gil Luria joins Morning Brief hosts Brad Smith and Seana Smith to talk more about Apple's goals to build out a Houston factory and hire an additional 20,000 workers.
"It's probably not incremental to CapEx. That's more political. But, there may actually be some domestic investment that is incremental that was not previously planned so the company can get in good graces with the president," Luria says.
Luria highlights that Apple has already been shifting its production away from China, focusing more on markets like India and the US, where manufacturing is becoming increasingly competitive. "The more you manufacture in the US, the more you're insulated from that," he says.
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Despite challenges in China, Apple's integration of artificial intelligence into its devices gives the company an advantage, as Luria adds, "that actually gives them an advantage in terms of how adaptive they can be to where AI is headed."
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This post was written by Josh Lynch