Trump takes a victory lap on Apple’s $500 billion U.S. investment, but one analyst calls it ‘completely unrealistic’

President Donald Trump thanked Apple chief executive Tim Cook after the company announced a $500 billion U.S. investment plan that would create 20,000 jobs. It not only helps Apple gain his favor via his “America First” agenda but could help it avoid tariffs. One analyst called it a smart move, while another thinks it’s unrealistic.

It didn’t take long for President Donald Trump to take his victory lap after Apple announced a plan to spend $500 billion and hire 20,000 people in the U.S. over the next four years.

The largest-ever spending commitment by Apple would expand its teams and facilities throughout the country and build a new factory in Texas that would advance its artificial intelligence push. “We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” Apple chief executive Tim Cook said in a press release.

But in a note to investors, UBS analyst David Vogt said “call us a skeptic…we believe it lacks substance,” referring to the announcement and large headline figure, citing multiple reasons. For one, only 10% of Apple’s supply chain is in the U.S. while the rest is throughout Asia, he told Fortune—and it has probably taken the company close to a decade to make that 10% happen.

His note also points to other parts of the investment plan that don’t quite add up. He estimated that the addition of 20,000 employees would translate to just $5 billion in extra operating expenses per year.

Source: FORTUNE