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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (165342)	2/4/2014 3:24:42 PM
From: Ryan Bartholomew	Read Replies (3) \| Respond to of 213177

How do you get anywhere near that low? The US cash isn't tax exempt. And why are you assuming a 30% tax rate for the foreign cash? iPhone customers have shown that they continue to be willing to spend extra to get the latest and greatest. But that is changing as phones like the Moto X cost substantially less but are just as late and great. They are currently grabbing potential iPhone customers with Galaxy sales in the range of 20 million per quarter at prices similar to the iPhone. The addition of a 4.7" and/or a 5.5" iPhone is simply going to allow Apple to compete for those customers as well as increasing the likelihood of current iPhone owners to upgrade. The price for the Moto X and some other peers isn't quite similar. In my course of business, I've seen a big rise in the number of people asking me, "I'm finally ready to get something other than an iPhone because I keep seeing these really nice Android phones that are a lot cheaper... what should I get?" Two or three years ago, there weren't many phones as nice as the iPhone, and the ones that were cost almost as much. No longer the case. That's why I'm concerned about a big downturn in iPhone sales growth, regardless of what form factors they release. I think they're going to have to couple it with price cuts to meet sales forecasts.

To: slacker711 who wrote (165342)	2/4/2014 3:26:00 PM
From: Pete_Y_48	Read Replies (1) \| Respond to of 213177

They have already paid some foreign taxes on the overseas cash so they are not going to be paying the full statutory rate if they repatriate the money. Just a FYI. My reading of the 10-Q's and K's leads me to believe that Apple has expensed some taxes for the expected repatriation of some overseas cash… which they have yet to pay. They will pay for it when they actually bring the money into the US. If they never bring the cash into the US, they can, at some time in the future, unwind the expenses and increase profit. The cash pile will get reduced by the full tax owed, when it is brought in, not when it is expensed. And you correctly stated that the full tax owed will be less than the full statutory rate (35%). Bottom line, cash will be affected by repatriation, profits, not so much.