chinacat
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AAPL Long since 2006
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Post by chinacat on Dec 2, 2017 9:35:26 GMT -8
Too bad AAPL gave back much of last week's gains, but I doubt that it had much to do with Apple itself. Seems likely that the tax cut measures will provide a boost to Wall Street, but it remains to be seen how that could be counterbalanced by the other activities in Washington. One month later: iPhone X has far exceeded my expectations is one of the most complete tours I have seen of the new UI gestures, and the videos add an extra level of clarity. It is clear, however, that Apple needs to focus on getting iOS 11 up to the quality level we have all come to expect. I suspect the software team needs to buckle down for the next few weeks if they want to have happy holidays. Apple will stop accepting 32-bit Mac apps starting January 1, 2018 is a reminder that the software side of the Mac continues to move forward. Unfortunately, as I have mentioned before, Fabulous Spouse and I continue to be disappointed about the lack of news about new iMacs. The Apple optimist in me says it will be well worth the wait, but that doesn't improve the present any.
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Post by tuffett on Dec 2, 2017 11:40:29 GMT -8
With a 14 - 14.5% repatriation, Apple can bring back over $200B to the US net of taxes. If the stock remains at highs in April, it would be a good time to pay down some debt and give a higher than usual boost to the dividend.
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artman1033
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Post by artman1033 on Dec 2, 2017 15:43:37 GMT -8
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Post by BillH on Dec 2, 2017 21:50:57 GMT -8
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4aapl
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Post by 4aapl on Dec 2, 2017 22:16:51 GMT -8
With a 14 - 14.5% repatriation, Apple can bring back over $200B to the US net of taxes. If the stock remains at highs in April, it would be a good time to pay down some debt and give a higher than usual boost to the dividend. The real interesting thing will be if Apple also takes a large one time gain, since I believe they have been taking out potential taxes on that overseas money all along the way. I'd have to sift through my notes for the past 5 years or so, but I really have the feeling that it wasn't just setting aside money, but even counting it as a cost at the time....and thus giving lower profits over quite a timeframe. If that's right, that would give a large one-time accounting change. Being one-time, it shouldn't change things too much....but would still be a nice boost.
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Since84
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Post by Since84 on Dec 3, 2017 4:45:04 GMT -8
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bud777
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Post by bud777 on Dec 3, 2017 7:13:21 GMT -8
Time for some Sunday morning speculation. Now that it looks like the overseas money is coming back at ~15%, I wondered what Apple might do with it and how it might make a difference. After much cogitation, I have come to this conclusion: damned if I know. I cannot think of anything that they can do now that they could not do before. Certainly, the balance sheet will look different, but will that affect the stock price? I don't see how. If we can go from a P/E of 12 to a P/E of 20 with essentially no change to the underlying fundamentals (and by fundamentals I mean the ability of the company to make money, so technology, competition, market size...) then what difference will another 40 billion make? (i.e. 200 *(.35-.15))
I did see one area that I would like to see some investment. I have always maintained that Apple is not selling hardware or software, they are selling the combined knowledge of the internet. There are two current problems with this product. While internet access is more and more ubiquitous, there are still areas where service is spotty. Imagine how much more we would use Apple devices if we were guaranteed that we could get a reasonable connection anywhere in the world any time. Apple could accomplish this with low earth orbit satellites. They are working on it and the cost is less that 50 billion. Apple would become the world's ISP.
This idea is especially relevant with the new net neutrality rules. I personally would pay double what I pay now for internet access if I knew the money was going to Apple instead of Comcast. I imagine others will share my views as we begin to see the inevitable censorship and throttling. Comcast is already slowing Netflix to half speed.
This would also allow Apple to deliver content and services that are optimized for or unique to Apple devices.
Just a few thoughts. Congratulations to everyone who got to ride this surge this year. I am looking forward to all of us getting together
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Since84
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Post by Since84 on Dec 3, 2017 9:40:41 GMT -8
My recollection is that Apple has been accruing the deferred taxes on the unrepatriated earnings. Hence the tax law changes could lead to a substantial restatement of income.
Can anyone confirm?
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Post by longsince98 on Dec 3, 2017 10:54:57 GMT -8
My recollection is that Apple has been accruing the deferred taxes on the unrepatriated earnings. Hence the tax law changes could lead to a substantial restatement of income. Can anyone confirm? That’s been my understanding for years
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ono
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Post by ono on Dec 3, 2017 11:21:15 GMT -8
I believe they've been accruing at an effective tax rate that is much lower than the statutory 35% rate. Though, I recall that it was significantly higher than 15%. About 24%. ...points out that Apple’s effective tax rate for its last fully-reported fiscal year, the 12 months ended September 2016, was 25.6%. That levy is well below the official federal rate of 35%. Why is the effective rate lower than the official levy? It’s mainly because multinationals only pay the in-country tax on earnings booked in say, Ireland or Hungary—where rates are far lower than in the U.S.—if they plan to invest the profits in those nations permanently, rather than eventually returning the money stateside.
(As Meyer observes, Apple employs that levy-lowering practice modestly when compared to many multinationals, and hence pays a relatively high effective rate.)Good article: fortune.com/2017/10/31/trump-tax-reform-apple-multinational-companies/There should be a one-time benefit, but also an ongoing benefit to earnings if their new effective tax rate is lower than the rate at which they've been accruing.
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ono
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Post by ono on Dec 3, 2017 11:48:36 GMT -8
Imagine how much more we would use Apple devices if we were guaranteed that we could get a reasonable connection anywhere in the world any time. Apple could accomplish this with low earth orbit satellites. They are working on it and the cost is less that 50 billion. Apple would become the world's ISP. This idea is especially relevant with the new net neutrality rules. I personally would pay double what I pay now for internet access if I knew the money was going to Apple instead of Comcast. I imagine others will share my views as we begin to see the inevitable censorship and throttling. Comcast is already slowing Netflix to half speed. This would also allow Apple to deliver content and services that are optimized for or unique to Apple devices. Make it so.
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