Apple's overseas cash reserves grow to the whopping $74 billion
0. phoneArena 10 Jul 2012, 08:14 posted on
By now you probably already know that Apple is the world’s biggest company in terms of market value, but it’s also got the biggest overseas cash reserves of all US tech firms…
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2. thebest (Posts: 231; Member since: 08 Jul 2012)
actually, every tech company is making products in asia these days, so all the companies are avoiding taxes...........its the customers(like me) that made apple so rich....it has the best apps in the world, but i want few widgets for my iphone......apple, wanna make more money? then give us some widgets....make us more happy, we will make you more happy!!!!!!!!
3. Aeires (unregistered)
At a certain point it starts to be perceived as greed and overpricing.
4. paulyyd (Posts: 328; Member since: 08 Jan 2011)
no bud, thats how it is run. It is a business. The only point is to make money
11. darkkjedii (Posts: 14127; Member since: 05 Feb 2011)
Exactly if u look at it, apples no different than Pepsi, google, or boeing. Make the most money while having to shell out the least amount u can. Big business they're just really good at it.
13. Aeires (unregistered)
That's the same mindset that caused the banks to collapse. There's more to business than just building cash reserves.
14. EclipseGSX (Posts: 1682; Member since: 18 Oct 2011)
aaaaaannddd then there's a line. 74 Billion?! Now what? World domination I mean come on.
23. gallitoking (Posts: 4700; Member since: 17 May 2011)
if Google reaches that reserves amount. would you called them succesful or greedy as well?
24. Aeires (unregistered)
Hard to call someone greedy who offers so much free services. Not only that, I doubt Google will reach that level, they do business in a completely different manner than Apple does.
35. InspectorGadget80 (Posts: 6946; Member since: 26 Mar 2011)
and why should u care on how much a company makes money? YOU'RE not even part of the company
5. xoutrageousx (Posts: 70; Member since: 22 Dec 2011)
Greed? Overpricing? It's a business, everyone is fighting to be successful and survive in this economy. All companies stack up cash overseas, I bet if it was Samsung that had this pile of cash or any non apple company. Everyone would be saying, that's smart business but since it's Apple it's not smart business. I am not even a fanboy either I own devices with both iOS and Android.
6. remixfa (Posts: 14252; Member since: 19 Dec 2008)
thats what happens when you have a president that keeps trying to force new taxes down everyone's throat (Obamacare has 10 new business taxes, and he's still threatening to raise more taxes). Businesses and rich people have the option of hiding their money from excessive taxes (or just passing them a long to their customers like businesses can).. we, the little people get stuck with the bill. Of course most people are so busy blaming businesses for protecting themselves from the rules, that they never stop to think to blame the people that created the rules in the first place.. the government. If we didnt have such crazy high taxes to begin with, there would be no reason for ANYONE to want to hide money off shore. Trillions of dollars would come back to the economy which is worth more than any tax hikes.
That's money thats pretty much never going to be used to create a job in America because the moment they bring it home, they owe tons of taxes on it.
7. Tux4g63 (Posts: 118; Member since: 21 Oct 2011)
The levied tax rate on business (35%) is the highest anywhere in the world basically, but the actual paid tax rate is wayyy lower. It's the tax code that needs to be overhauled and fixed so that everyone would "actually" pay a fair share.
Warren Buffet stated it best when he said his secretary's effective tax rate was higher than his. Companies and very wealthy people can afford to find ways to exploit the loopholes. Most of middle class and lower class America can't afford that kind of professional.
The fix is to create a more uniform and level tax code, that is enforceable, and does not create as many loopholes.
22. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)
the reason warren buffet said all that is because he was lobbying obama to not build the gas pipeline from canada to texas so that buffet's railroad would remain the prevalent way to transport oil... he is also in a billion dollar tax dispute with the irs, which he would much like obama to diminish...
buffet did not say all that as a concerned citizen... and anyways all his money is taxed through corporate and stock taxes, so its not like he is paying less
but yes the tax code direly needs reform... i mean the tax code is some excess largeness like 7000 pages or something
and remixfa i completely agree
26. remixfa (Posts: 14252; Member since: 19 Dec 2008)
sorry tux, but 20% of 30k is a lot less (and still too much) than Buffet's 15% of A BILLION DOLLARS.
Buffet (and the rest of those "evil greedy rich people" that make up the top 5%) pay nearly 60% of all taxes. They are paying their fare share.. and then some. In fact, "the poor" as they are called pay no taxes at all.. and im not just talking dirt poor, im talking someone making like 11 bux an hour. By the time you get all your tax deductions (especially if you have kids and a house) your MAKING more than your paying into the system. Effectively anyone making less than like 35-40k a year with kids pays little to no taxes... including Buffet's secretary.
People need to quit reading headlines and thinking they know whats going on. The news doesnt tell you jack.. if your not researching it yourself your blind to whatever truth there may be.
12. iamcc (Posts: 1319; Member since: 07 Oct 2011)
Remix, your opinion is pretty respected around here (for the most part) do yourself a favor and don't bring politics into a phone discussion.
16. androiddownsouth (Posts: 598; Member since: 02 May 2012)
I agree remix, but I also agree with iamcc that this just isn't the place for politics. You tend to be smart and well informed, let's not ruin our tech talk with politics man.
19. jmoita2 (Posts: 930; Member since: 23 Dec 2011)
Actually, tax revenues are at historic lows, thanks to people like you who think millionaires and billionaires don't have to pay taxes. Do your own thinking instead of swallowing far right propaganda without thinking twice.
27. remixfa (Posts: 14252; Member since: 19 Dec 2008)
no... tax revenues are at historic lows because we are not bringing in SALES TAX like we used to. No jobs = no free money = reduction in tax revenues from income tax and especially sales tax.
Looks like im not the one that needs to quit swallowing propaganda.
8. MartyK (Posts: 729; Member since: 11 Apr 2012)
Why is it EVERYTIME someone talks about business,Electronics or ANYTHING the first thing poor people (People who makes less then $250,000.00 a year) Always scream and want to protect the rich people like some lap dog?..don't worry about what is going on with the Rich BANK ACCOUNT, worry about your own little pockets and who is trying to save our poor butts some money and reduce US DEBTS.
IF YOU MAKE LESS THEN $250.000.00 A YEAR ( except P.A staff they make more)..OBAMA IS YOUR FRIEND!!..don't vote against your pocket!!
15. androiddownsouth (Posts: 598; Member since: 02 May 2012)
There is so much wrong with that last statement that this is 100% not the time nor place to tell you why, not that you would listen based on your post.......
28. remixfa (Posts: 14252; Member since: 19 Dec 2008)
ill put it this way.
Obama wants to keep the BUSH tax cuts for all making less than 250k. He's not saving you any money. The other side wants to keep all tax cuts and not raise anyone's rate. The middle class is not in danger of a direct tax hike. However the dozen+ indirect taxes he has pushed in obamacare will hurt us + inflation.
9. InspectorGadget80 (Posts: 6946; Member since: 26 Mar 2011)
What they should of talk is how much Apple is loosing money spending on the courts and
10. good2great (Posts: 1042; Member since: 22 Feb 2012)
dude chill out man... if you dont have anything intelligent to add to the articles then just sit back and relax...
you guys type the same ole comments day after day in here...
calm down... GEEZ!!!
we know you HATE apple... get over it...
17. christianqwerty (Posts: 463; Member since: 05 May 2011)
Hey apple, my birthday is coming up.... Just throwing that out there.
18. mas11 (Posts: 1033; Member since: 30 Mar 2012)
They should spend that money on innovation. If the money is just sitting there it's a huge waste.
20. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)
not really.. they might be gearing up for a huge investment in a company, or they just want to slowly make interest from off-shore accounts
25. mas11 (Posts: 1033; Member since: 30 Mar 2012)
Well if a company isn't using money it's just a waste (Business 101)
29. remixfa (Posts: 14252; Member since: 19 Dec 2008)
not true at all. Businesses need large reserves in the bank to float the company when they run into rough times. This is new for apple. They have never been a "big company". Until the iphone they were not much more than a hippy boutique computer company with a tiny marketshare compared to MS. The proper thing to do is to take the time to build up a warchest incase the market crashes or some other unforseen accident. Without that war chest, if something did happen, they would be SOL just like anyone else that doesnt have savings.
Its just like when people spend every penny they make and never save anything. The moment anything happens, they are SOL. Lesson for life, you can always find a way to save money if you look. There is a big difference between "need" and "want".
On that note, im sure they could find much better things to invest a chunk of that money in instead of letting it sit there building minimal interest. Any interest they may gain is chump change to how much they could make by reinvesting. The problem is, they cant reinvest it back into america without paying massive taxes on it. So any investment would go to offshore work sites.
One thing that Jobs did try to do that I agree with, is that he tried to convince Obama in one of their personal meetings that Obama should strip the tax away from repatriating money (bringing it back from offshore accounts), so businesses would bring TRILLIONS back into the US to have it reinvested in jobs and growth. Obama flat out refused... even with the promise of mass investments by many major cooperations that have large offshore accounts.
31. jmoita2 (Posts: 930; Member since: 23 Dec 2011)
And why did saint Jobs decide to hide the money overseas to begin with??? If I reneg on paying my taxes, do i get to try and convince the President to get me a huge discount on what I owe??? Tax cheats, specially those who out of pure greed hide their money overseas belong in prison.
34. remixfa (Posts: 14252; Member since: 19 Dec 2008)
saint jobs? lol. your off your rocker. the man was anything but. Even the worst kind of person makes a good point once and a while.
Its not cheating your taxes. Get over it. The system was set up by rich politicians who like to grandstand about the "evil rich" and "paying their fair share" while making dozens of loop holes so that never actually happens. There are more millionaires and billionaires on the democrat side than the republican. Do your homework. The lawyer's lobby group donates nearly 100% of all their lobbying money to democrats. the biggest tax offenders all donate to or ARE democrats. They are also many of the same people that demagogue against "evil rich greed". The entire time Hillary clinton was running agaist Obama and talking about Exxon's "obscene profits", she was personally investing tons of her own money into them and made millions from it and their donations to her.
Quit LISTENING to politicians, and start actually paying attention to what they are doing. Every time they talk about a new corperate tax or closing a loophole, it hurts US the regular people more than it hurts them.
Common sense. They are NOT going to actually pass laws that hurt THEM. Every time they pass a law, they add 5 more loopholes to get out of it, or like the Obamacare bill, they completely exempt themselves from it in the bill.
32. InspectorGadget80 (Posts: 6946; Member since: 26 Mar 2011)
yes instead of taking every Android manufacturer out to court wasting money and also taking some Android ideas
30. The_Godfather (Posts: 184; Member since: 26 Apr 2012)
They got this much because of stupidity of people
33. strikercho (banned) (Posts: 156; Member since: 20 Mar 2012)
I really wonder why doesn't Apple just buy all the bunch out there: Shamshung, Giggle, Sony, Nokia etc. and finish with all these trials. They can afford it and will still have cash remaining. :)