(21-10-2013, 01:31 PM)freedom Wrote: [ -> ]Apple and the likes can continue to dream on that the US government will lower repatriation tax. It is unfair for all those honest companies which paid the tax.
What do you mean by "revenue is overseas in non US$"? The revenue is overseas because they don't use their US subsidiaries to make the sales, which would pay higher tax. So still tax avoidance.
I will differentiate tax avoidance and tax evasion.
I do have issue with tax evasion, and it is very unfair for those have paid taxes.
I don't have issue with tax avoidance, as long as it is within the rules of game. Company's CFO is mandated by shareholders to do so, and part of his/her job scope.
No one is blaming Apple for tax avoidance. The problem here is that because tax avoidance, the cash becomes "dead money", which does shareholders no good. Unless Apple can think of a way of spending the oversea cash, it has done worse than paying the tax and do something in the United States in a way.
The competition continue...
iPhone 5S puts Apple back on top in the US
LONDON — iPhones outsold Samsung phones for the first time in six months last month, although the Korean company is still ahead in general, data from Counterpoint Research yesterday (Oct 21) showed.
The new iPhone 5S and iPhone 5 made Apple the US top smartphone seller in September, despite their only being on sale for 10 days of the month.
New data from Counterpoint Research provided exclusively to the Guardian shows that Apple sold 4.8 million phones there in September, jumping to a 38 per cent share of the entire US smartphone market for the month. The figures include sales of the new iPhone 5s and 5c, which went on sale there on Sept 20.
The competition saw Samsung drop to overall second place after having led the market since May.
...
http://www.todayonline.com/tech/gadgets/...ack-top-us
(21-10-2013, 01:31 PM)freedom Wrote: [ -> ]Apple and the likes can continue to dream on that the US government will lower repatriation tax. It is unfair for all those honest companies which paid the tax.
What do you mean by "revenue is overseas in non US$"? The revenue is overseas because they don't use their US subsidiaries to make the sales, which would pay higher tax. So still tax avoidance.
The dream was realised in 2004. It is not "unprecedented" as per the catchphrase nowadays. So not totally illogical for companies to keep hoping until no choice. "dead money" or not depends on the opportunity cost. As of now the opportunity cost for price of money is low. Read what Buffett has to say about delaying taxes to compund the returns.
And holding foreign currencies vs depreciating USD could be genius 3 years from now, not to mention as natural hedge against overseas non-USD expense. The cash can also be used for offshore acquisition as well. You can even structure to buy a company with offshore funds.
There are more than 1 reason to have separate units besides tax. Tax, like profit sharing, is a cost driver but usually not the main consideration. No legitimate company prefer no tax to no profit, barring the gymnastics done by the tax accountants.
PS again I am not stating an opinion is this post.
In the Apple Inc's case, is there a return of the oversea money? yes, merely less than 1%.
Who really benefits from the oversea money? No one.
If that's how the corporate treasury should work, soon these companies will simply destroy themselves.
BTW, if Warren Buffet encourages delaying repatriation taxes to compound returns, he would not invest in IBM as IBM paid most of its repatriation tax every year. The tax he is delaying, if I am not wrong, is because the tax rate in US is high and the dividend is taxed again on recipients. Correct me if I am wrong, in the context of Buffet's "delaying tax to compound return", he did invest the money in good business to generate good return or buy back shares, not as what Apple Inc did, leave the money in the US treasuries to earn less than 1%. There is a huge difference.
I believe McDonald's also derive lots of revenue from overseas.
Do they have the same problem? Just curious......
The new Apple tablets. The naming consistent with its notebook, the MacBook Air, the slim version.
Hands-on with Apple’s new iPad Air and Mini
SAN FRANCISCO — The iPad’s dense weight has been a longstanding complaint since the tablet first made its debut. But this has not stopped it from achieving long usage rates among users — a sign that tablets, or iPads rather, are not a passing fad.
According to a survey by research firm Gartner, 80 per cent of iPad owners use their tablets at least 10 times daily. Apple chief executive Tim Cook even pulled out a slide during the company’s iPad Air launch event to show that iPad usage rates were four times as much as other tablets.
This is why the iPad Air’s apparent lightness is such a big deal. Its more lightweight form will not tire your arms quickly under prolonged usage.
The original iPad weighed 680g and was 13mm thick, and the new iPad Air weighs 469g and is 7.5mm thick — this makes it 31 per cent lighter and 42 per cent more svelte than the original.
While it might not seem like much, the iPad Air does feel a lot lighter to hold in the flesh. The narrower bezel on its sides makes it look much sleeker and, at-a-glance, seems less cumbersome to hold compared to its predecessors.
The iPad Mini, on the other hand, retains its form factor but gains a leap in processing power, while packing a high-resolution display. It has certainly caught up with its bigger sibling.
This makes it tougher for consumers to choose between the iPad Air and the Mini. The only major feature that you might need to consider for your needs, apart from Apple’s premium prices, is the size of the display that you are comfortable with.
http://www.todayonline.com/tech/gadgets/...r-and-mini
Let's see the upcoming financial report, whether the analyst or the market observation is right...
Apple’s iPhone sales, holiday quarter up for scrutiny
SAN FRANCISCO — Apple’s iPhone sales and revenue forecasts, due to be released today (Oct 28), may offer clues as to whether its low-cost 5c model missed the mark or whether the world’s largest tech company can continue its run of smash-hit gadgets.
Signs have emerged that demand for the cheaper model is lagging the top-tier iPhone 5s — both of which went on sale in September — because its US$100 (S$123) discount is proving to be insufficient to motivate emerging market and price-conscious customers.
But some analysts say the concerns are overblown and that a greater proportion of iPhone 5s shipped, translates into better margins and earnings overall.
Apple will be reporting results just a week after taking the wraps off an incrementally improved iPad Air. But it is the iPhone, which accounts for more than half the company’s profit and is its highest-margin gadget, that takes centre stage.
Apple is expected to report sales of 33 million to 36 million iPhones in its fiscal fourth quarter that ended in September, rising to more than 50 million in the typically strong holiday quarter — the first full quarter of sales of the two new phones.
“Media reports of 5c production cuts are misleading, in our view, given what we think has been strengthening overall 5s/5c production with 5s vectors continuing to strengthen even (in) real time,” Mr Timothy Arcuri, an analyst at Cowen said in a research note.
...
http://www.todayonline.com/tech/apples-i...r-scrutiny
Market observation is more right than analyst...
Apple’s profits slide despite solid iPhone sales
NEW YORK — Apple’s profit and margins slid despite selling a solid 33.8 million iPhones in its September quarter, prompting disappointed investors to cash in some of the stock’s recent strong gains.
Wall Street had hoped for a stronger beat on quarterly sales after the company predicted in September that its revenue and margins would come in at the high end of its own forecasts.
Shares in Apple, which have gained 17 per cent since, slipped about 2 per cent after hours to US$519.10 (S$642.11) yesterday (Oct 28).
...
http://www.todayonline.com/business/appl...hone-sales
Apple developing curved iPhone screens, improved sensors: Report
TAIPEI — Apple is developing new iPhone designs including bigger screens with curved glass and enhanced sensors that can detect different levels of pressure, reported Bloomberg.
Quoting a person familiar with the plans, Bloomberg reported that two models, planned to be released in third quarter of next year, will feature large displays with glass that curves downward at the edges. Sensors that can distinguish heavy or light touches on the screen may be incorporated into subsequent models, the person said.
The report also said that the new iPhones will be Apple’s largest, with screens up to 5.5 inches (14cm).
Apple declined to comment.
http://www.todayonline.com/tech/apple-de...ors-report