emily chang caught up with alex webb. alex: a new campus will be for support.y have one in austin. it's not something that is easy to do in china. it it has to be done in the u.s. emily: how many jobs might that create? alex it would create 3000 jobs. : that is good news from a political perspective, but given they have 84,000 already, it is a big bump. that is over five years. emily: what else does this mean? alex: if you look at the numbers, the big number they want everybody to talk about is will spend $350 billion in the u.s. over the next five years. they were going to spend that much already. the new deal is $30 billion spent in the u.s. they still have a huge pile of cash, and that is what shareholders will be excited about in terms of buybacks and dividends. emily: what happens to the rest of that cash that remains overseas? alex: there are three ways they can use it. buybacks, shareholder returns, m&a, and repayment of debt. they have over $100 billion in debt. i think the expectation is a lot of this money goes to shareholders. i think broadly speakin

emily: that was alex webb.ese suppliers is getting slammed for harsh working conditions. the company is under scrutiny after a rights group found violations on its factory floors. peter joined us from tokyo with the latest. it is important to note there is a report out from china labor watch. bloombergn, we sent news reporters to the factory to intervene reporters -- to interview workers. they described harsh conditions they are working under. for uplk about standing to 10 hours straight in hot factory conditions come as they work on these iphone casings. sometimes they say they don't have the proper equipment, including masks and gloves, in some cases earplugs. a talk about the difficulties there. they also talk about, they say there are hundreds of workers in this factory and the door only opens 12 inches, which makes it difficult to get in and out quickly. was able to visit their dorms to see living conditions, which were difficult. they are cramped. many workers cramped into small rooms. no showers, no hot

joining us more, bloomberg tech's alex webb, who covers all things apple. how they spend this $30 billion? >> it will spend on a new campus for technical support. they have one of these in austin. clearly something that is not is it do in, say, china. so it has to be done in the u.s. emily: how many jobs will that be? >> hundred thousand jobs, which is good news for a political perspective. it is quite a big bump, but it is one caveat. that is over five years. emily: what else does this mean? is if you interesting really look at the numbers, they are going to spend $350 billion in the u.s. over the next few years. odds are they were going to spend most of that money already. the new money for the tax bill and $30 billion spent on the u.s., if you subtract that from what they have offshore at the moment, they still have a huge pile of cash and that is what shareholders will be really excited about. the restat happens to of that cash that currently remains overseas? >> there are three ways they can use it. buybacks from shareholders, and repayment of debt. an

selina: that's alex webb.gest chinese suppliers is getting slammed for harsh working conditions. for the manufacturer iphone brush metal casings is after right group found violations on its factory floors. bloomberg managing editor peter joined us from tokyo. >> it's important to note, out from chinat liberal watch. we spent bloomberg news reporters to the factory to ahead of thisers report coming out. they described quite harsh conditions. they're working under. he talk about standing up for 10 hours. hours straight in hot factory conditions as they work on these iphone casings with lot of noises. statements they say they don't equipment,oper including masks, gloves and ear plugs. they talk about the difficulties there. they also talk about if you're a claustrophobic, the door 10 inches.about our reporter was able to visit their dorms too to visit living condition. they are cramped and many workers jammed in small rooms. no showers and no hot water. it's a quite difficult condition. they are cramped situation

we talked about that to bloomberg technology's alex webb. ex: the iphone x was released six weeks after the iphone 8. and so there was a fear that maybe if they got too close to the release date of samsung's next high-end smartphone which will probably come in march, there would not be enough demand to sustain the demand they otherwise have to get. cory: competition is another part of this? alex: exactly. particularly in china, a lot of the local manufacturers are coming out with products now, which have a better price point than what apple is able to offer, but have similar very features. nobody quite yet has the face identification or the sensor that the iphone has. some of these analysts were writing earlier today, that has not been enough to bring up demand for the product. cory: it seems like a big part of the apple strategy of the phones is drumming up the general marketplace of potentially new applications and stuff that we have not seen. the phone could do really cool facial recognition stuff or could, but there are not a one of appli

joining us now with apple's latest announcement is alex webb who covers all things apple.s $30hey spend billion? it will spend on a new campus for technical support. they have one of these in austin. so it has to be done in the u.s.. emily: how many jobs will that be? hundred thousand jobs, which is good news for a political perspective. it is quite a big bump, but it is one caveat. emily: what else does this mean? the numbers, the big number that everyone is going to talk about is that there want to spend three to $50 $350 billion in the u.s.. if you subtract that from the 252 billion that they have offshore, they have a huge pile of cash, and that is a big shareholders are going to be excited about in terms of buybacks. emily: what happens to the rest of that cash that remains overseas? >> there are three ways they can use it. buybacks from shareholders, and repayment of debt. debt a hundred billion dollars in debt. there are spending a lot of dollars on their m&a. , broadly speaking, the expectation that a lot of money is going to shareholders. emily: what is the expect

alex webb, who covers apple for bloomberg technology.ys for joining us today on the show. that does it for this edition of "bloomberg technology." a reminder, we are livestreaming on twitter. that is all for now. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. announcer: the following is a paid advertisement for credit secrets. sponsored. actual,he endorsers are enthusiastic and successful users of the credit secrets program. ♪

bloombergned by technology's alex webb. how big of a deal is this for the company?> i think the money they talked about is not one we care about. they have a lot to play with once they pay the tax bill -- there's no going to have wonders they billion dollars to play with. the expectation that it will go to buy back. >> what is apple not talk about in these headlines that we are not seeing? >> they're not talk about what they're going to use the rest of the money for. the 75 billion over six years -- it is these two elements, the drop in the ocean compared to what they're going to have to play with given they have you $1 billion in cash flow each year. a lot of people are interested to see what they talk about when they report the earnings the start of february. well was surprising asked -- was surprising as well that this was a bit earlier than expected. is this a surprise? > >> it made me chuckle. it's sort of make a mockery of that idea. it came out with no warning at this was going to happen. there might be political agendas behind it. we have yet to see any comm