Ap­ple’s US$1b fund to grow in­ter­est in man­u­fac­tur­ing

New Straits Times - - Business -

SAN FRANCISCO: Ap­ple is cre­at­ing a fund to get more peo­ple in the United States to do “ad­vanced man­u­fac­tur­ing”, kick­ing it off with a bil­lion dol­lars, said its chief Tim Cook on Wed­nes­day.

Ap­ple spent more than US$50 bil­lion (RM216 bil­lion) in the US last year, buy­ing from sup­pli­ers, work­ing with devel­op­ers be­hind ap­pli­ca­tions for the Cal­i­for­nia com­pany’s de­vices and more, said Cook in an in­ter­view on CNBC.

The com­pany had about 80,000 em­ploy­ees in the US and planned to hire thou­sands “in the fu­ture”, he said.

The first in­vest­ment of the new fund would be an­nounced later this month, said Ap­ple.

Mean­while, in Lon­don, Ap­ple’s key sup­plier Imag­i­na­tion Tech­nolo­gies said it had started a “dis­pute res­o­lu­tion pro­ce­dure” with the iPhone maker af­ter fail­ing to re­solve a stand­off over li­cens­ing.

Imag­i­na­tion said last month that Ap­ple had no­ti­fied the Bri­tish firm it was de­vel­op­ing its own graph­ics chips and would no longer use Imag­i­na­tion’s pro­cess­ing de­signs in 15 months to two years time.

The po­ten­tial loss of Ap­ple, which ac­counts for about half of the firm’s rev­enue, sent its shares down 70 per cent on the day, and the stock has barely re­cov­ered. It has also sent shud­ders through other Ap­ple sup­pli­ers.

Imag­i­na­tion re­ceives roy­al­ties from ev­ery sale of an Ap­ple de­vice con­tain­ing its de­signs, in­clud­ing the iPhone and iPad.

It said on Thurs­day it had been un­able to make sat­is­fac­tory progress with Ap­ple on an al­ter­na­tive com­mer­cial ar­range­ments for the li­cence and roy­alty agree­ment.

“Imag­i­na­tion has com­menced the dis­pute res­o­lu­tion pro­ce­dure un­der the li­cence agree­ment, with a view to reach­ing an agree­ment through a more struc­tured process,” it said. Agen­cies

Tim Cook

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