Apple reports its earnings in USD. So while it accepts other currencies overseas, that foreign currency is then translated into USD for accounting / reporting purposes. When FX changes the USD received on a foreign sale, that impacts Apple's earnings, even if the units sold remained equal. That's why Apple has increased the foreign price of hw and apps, which is bad for unit sales, but perhaps better than selling stuff at a loss (as in many cases, products will sell regardless of the price). Either way is generally bad for Apple.
Nice cartoon fantasy. Corporate securities investments? Like what? I doubt they are commingling funds from US revenue and foreign revenue through their Utah financial services. I still think the China revenue is in Chinese banks or Chinese securities, certainly not US corporate bonds or stocks. I could be wrong but your view is quite suspect in my opinion.
So what is your own sense of reality based upon?
I'm simply describing what Apple reports in its 10K. More than half of its $206 Billion total ($200 of which is "overseas") is in the form of "corporate securities," around 20% is in US govt securities, about 3% is other govt securities, 5 percent is in deposits and commercial paper, and about 7 percent is cash or MM/mutual funds.
Why be so rudely "suspect" of others when you're just guessing?
I'm simply describing what Apple reports in its 10K. More than half of its $206 Billion total ($200 of which is "overseas") is in the form of "corporate securities," around 20% is in US govt securities, about 3% is other govt securities, 5 percent is in deposits and commercial paper, and about 7 percent is cash or MM/mutual funds.
Thanks, good info. If Apple only has $6 billion available liquidity in the US, that seems cause for concern.
Thanks Mr Dilger! I was worried you had taken leave and wouldn't return to AI. I'm curious as to exactly how Apple's p/e is so much lower than Goog or Amzn. I suspect the fastest way for Apple to change that would be to buy Msft and/or Goog, then all those bloggers would no longer have an income. Just free associating ideas... Anyway, love your work!
Thanks Mr Dilger! I was worried you had taken leave and wouldn't return to AI. I'm curious as to exactly how Apple's p/e is so much lower than Goog or Amzn. I suspect the fastest way for Apple to change that would be to buy Msft and/or Goog, then all those bloggers would no longer have an income. Just free associating ideas... Anyway, love your work!
Apple can't buy those companies. They would cost way too much. And the guys at Google and Microsoft would never sell anyway. Apple could try to do a hostile takeover. But the companies are presumably protected by poison pill provisions in their corporate charters. And whatever Apple offered for the stock the Boards of those companies would immediately counter that it is way to little and ask for more. And finally a merger of Apple or Google would have to pass Anti-Trust review. The U.S. government would take the view (correctly) that a merger would create a monopoly (with Microsoft a monopoly on PC OSes and with Google a monopoly of smartphone OSes). So the U.S. government would block an attempt at a merger.
I'm simply describing what Apple reports in its 10K. More than half of its $206 Billion total ($200 of which is "overseas") is in the form of "corporate securities," around 20% is in US govt securities, about 3% is other govt securities, 5 percent is in deposits and commercial paper, and about 7 percent is cash or MM/mutual funds.
Thanks, good info. If Apple only has $6 billion available liquidity in the US, that seems cause for concern.
I'm not sure how you pulled out $6 billion in available liquidity in the U.S. But I can assure even if that was the case it would not be a cause for concern. Apple has working capital facilities and an entire investment banking industry which will drop anything they are doing to lend Apple money at a moments notice. Not to mention the cash that is "overseas" can be brought back in a moments notice at the rate of billions of dollars per day. That is if Apple wants to incur tax liability. Not to mention $10s of millions in U.S. revenue flowing up from sales on a daily basis. Spending this level of cash doesn't happen by accident either. TIm Cook isn't going to suddenly wake up one day and realize he forgot that he had to payout $10 billion on some deal that morning. Apple probably doesn't even write any big checks out of the U.S. since the big costs are buying iPhone parts and manufacturing which all takes place in China. And those are huge transactions with months of lead time and planning. The only threat to Apple's current balance sheet would be some total collapse of the global economy that takes down all of the major financial institutions such that all those securities that Apple is invested in loose vast amounts of value. Now the fact that we flirted with that in 2008 might mean that you could take the view that this could happen. But it is highly unlikely. And even if this did happen, it wouldn't protect Apple if those investments were held by the U.S. part of Apple. The only way to protect against that would be to hold the money in US dollars instead of in all these securities. But then Apple would be exposed to inflation and U.S. exchange rate. There really isn't anyway to be completely protected from a global financial crisis.
Ahh... The nay-sayers of the battered and self-abused Wall Street lip flappers once again is ramping up to fleece the masses for more trillions... This game is SO OLD and SO BORING AND PREDICTABLE that all they can do now is whine.. The Wall Street type has been treated like a common god-king who can do no wrong, even though the brutal crime (killing our country) has been committed IN OUR FACE.
We seem not to care. If we don't care, just keep on walking. If you care that ALL rethuglicons that want to time-transpost the glode back 300 years so old farts don't have to deal with global realities is the right thing to do, then just sit still and keep pulling your thumb out of you backside every 13 seconds for 'further feeding' then just keep sitting there. If not, get up off your lazy, fat ass and go pick up a sign; join a protest movement; get involved; DON'T let this struggle with certifiable lunacy breath any further life. STOMP IT FLAT. And walk away.
Comments
So what is your own sense of reality based upon?
I'm simply describing what Apple reports in its 10K. More than half of its $206 Billion total ($200 of which is "overseas") is in the form of "corporate securities," around 20% is in US govt securities, about 3% is other govt securities, 5 percent is in deposits and commercial paper, and about 7 percent is cash or MM/mutual funds.
Why be so rudely "suspect" of others when you're just guessing?
I was worried you had taken leave and wouldn't return to AI.
I'm curious as to exactly how Apple's p/e is so much lower than Goog or Amzn.
I suspect the fastest way for Apple to change that would be to buy Msft and/or Goog, then all those bloggers would no longer have an income.
Just free associating ideas...
Anyway, love your work!
We seem not to care. If we don't care, just keep on walking. If you care that ALL rethuglicons that want to time-transpost the glode back 300 years so old farts don't have to deal with global realities is the right thing to do, then just sit still and keep pulling your thumb out of you backside every 13 seconds for 'further feeding' then just keep sitting there. If not, get up off your lazy, fat ass and go pick up a sign; join a protest movement; get involved; DON'T let this struggle with certifiable lunacy breath any further life. STOMP IT FLAT. And walk away.