How much of the currency effects is real?

yoyobozoyoyobozo
Posted:
in AAPL Investors edited December 2014

Please enlighten me:

 

- Aren't the reported profits and foreign reserves numbers, in dollars, all but estimates since Apple isn't going to subject its international reserves (presumably, stashed in local currencies) through bad forex rates and high repatriation taxes?

 

- If Apple were to use the foreign reserves for foreign spendings and investments, all that money wouldn't necessarily have to go through dollar conversion, no?

 

- Wouldn't some op-ex spendings be done in local currencies using the local cash reserves, i.e. not impacted by the strong dollar?

 

- Wouldn't the actual value of the quarterly contribution into the foreign reserves rise some time down the road when the dollar is weaker?

 

- Due to the strong dollar, pushing the government for a "tax holiday" would probably be out of the question for now?

 

So while the impacts of forex on some aspects of reported op-ex may be accurate and final, some other "reported" numbers may not truly reflect the final realized values, e.g. not as bad as they may seem?

 

It seems there are some financial games Apple can play for both when the dollar is strong and when it is weak and that the financial reports could in some ways be "misleading."

 

Thanks and cheers.

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