3 days ago
Apple Expands Texas Supply Chain to Protect Shareholder Returns
Apple wants to build more of its supply chain in the United States.
It plans to spend $60 billion in Texas.
The money is part of a much larger $600 billion U.S. manufacturing commitment.
A new Houston factory will make Mac mini computers and send out special servers used for artificial intelligence.
Apple will still not make iPhones in the United States under this plan.
Producing more parts at home could help Apple deal with changing tariffs and trade rules.
Tariff refunds helped Apple’s latest profits and margins.
However, higher memory prices may reduce profits in the next quarter.
John Ternus is expected to become Apple’s CEO on September 1.
Apple plans to invest $60 billion in Texas as part of a broader $600 billion U.S. manufacturing and supply-chain commitment.
A new Houston facility will produce Mac mini computers and ship Apple’s advanced artificial intelligence servers, but not iPhones.
Apple is partnering with Broadcom on custom silicon components and advanced wireless technologies in an agreement valued at more than $30 billion.
Tariff refunds added two percentage points to Apple’s 50.1% quarterly gross margin and $0.11 to diluted earnings per share of $2.02.
Rising memory costs and potential future tariffs are expected to pressure margins as CEO-designate John Ternus prepares to take over on September 1.
- Who
- Apple, led by Tim Cook and preparing for John Ternus to become CEO, along with manufacturing partner Broadcom.
- What
- Apple plans a $60 billion Texas investment and broader U.S. supply-chain expansion to make its manufacturing network more resilient.
- Where
- Texas, including a planned facility in Houston, and the broader United States.
- When
- The investment is part of a four-year commitment announced last year; John Ternus is scheduled to become CEO on September 1, while the cited tariff ruling occurred in February 2026.
- Why
- To reduce exposure to tariffs and trade disruptions, protect profit margins, and build a more diversified domestic supply chain.
Key facts
- Texas investment
- Apple plans to invest $60 billion in Texas.
- Total U.S. commitment
- Apple has committed $600 billion over four years to U.S. manufacturing and supply-chain activities.
- Houston facility
- The facility is planned to produce Mac mini computers and ship Apple’s advanced artificial intelligence servers.
- Broadcom agreement
- The long-term partnership to develop and manufacture custom silicon and advanced wireless technologies is expected to exceed $30 billion.
- Latest gross margin
- Apple reported a 50.1% gross margin, including a two-percentage-point benefit from tariff refunds.
- Latest diluted EPS
- Diluted earnings per share rose 29% year over year to $2.02, including $0.11 from tariff refunds.
- Next-quarter outlook
- Apple expects fiscal fourth-quarter gross margin of 47% to 48%, including a one-percentage-point tariff-refund benefit.
Quotes
Tim Cook
Apple's chief executive officer
“This marks our largest-ever American manufacturing program commitment. It's also an important step forward in our work to build an end-to-end silicon supply chain here in the U.S.”
livemint.com
Sources
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