During today’s fourth fiscal quarterly earnings call, Apple CEO Tim Cook addressed the massive pile of cash that Apple has in the bank. As it turns out, about two-thirds of Apple’s available cash is currently held overseas.
Apple is known for being incredible conservative when it comes to spending. The company very rarely makes high-profile buyouts, and internal operations are streamlined for efficiency. Holding money offshore allows Apple to defer taxes until the money is brought back to the United States.
As MacRumors points out, on September 24, 2011 Apple had $81.57 billion to its name. Since then, it’s estimated that Apple has added $5.4 billion.
When asked about Apple’s growing pile of funds, Tim Cook said, “I am not religious about holding it or not holding it. I’m religious about a lot of things, but not that.” Cook said that, “we’ve acquired companies, acquired IP, invested in the supply chain and invested in our stores.”
Rumors come up every now and then that Apple is considering a major acquisition, such as the Hulu deal that was rumored to take place this past summer. Most of Apple’s acquisitions stay undisclosed to the public. It’s been rumored that Apple paid between $150-$200 million for Siri, the company that originally developed the latest voice technology in the iPhone 4S.
Theoretical analysis says that Apple has more cash on hand than the U.S. government. The company has also traded past ExxonMobil in the past to become the world’s most valuable publicly traded company.
By keeping the majority of its funds stored overseas, Apple saves money on taxes in the United States and sets itself up for continued growth in international markets, like China.
Alex Heath is a journalist who works for Tech Insider. He’s the former co-host of The CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like “ICONIC: A Photographic Tribute to Apple Innovation.” He lives in Lexington, Kentucky. If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Follow him on Twitter.
36 responses to “Tim Cook: Apple “Not Religious” About Holding Cash, $54B is Overseas”
Maybe Apple’s saving up to buy Google lol.
“payed” ???
I don’t think they want or need Google at this point.
It was a joke. get it. ha ha.
Apple is a hardware company and such they would’nt buy Google. It would’nt fit into their long term plans, but they might venture into the telecommunication buisness in the not to distant future , but their waiting for the next release of iPhone and iPad plus their newest invention that I see being release next year just before they report their quarterly profits.
Ah, so high domestic taxes figure prominently into Apple’s biz strategy. And yet, disproportionately, Apple employees (and execs) vote for the party that wants to keep corporate tax rates the highest in the world. I wish they’d preach what they practice.
Of course, those “high corporate tax rates” — which many corporations exploit loophole after loophole to avoid paying altogether — haven’t affected Apple’s ability to invest in itself and create massive profits.
It’s hard to come up with a plausible argument as to why a multi-billion dollar corporation is somehow going to be negatively affected by corporate taxation. Going by current corporate tax rates, Apple’s liability is approximately $21 billion, which leaves them with just a paltry $65 billion to throw around.
That’s ok the American people who do pay taxes will cover what apple and other big company’s are dodging. Wow!!! and yes I know apple pays taxes but stuff like this has to stop. Don’t get me wrong I love apple and there products.
The point is that the money is purposely kept out of the U.S. so that
Apple doesn’t have to subject its wad to the taxman. Obviously, Apple
doesn’t think $21 billion is chump change. Which means U.S. banks, brokerage houses, and lending institutions have less liquidity than they otherwise would.
Also, putting scare quotes around “high corporate tax rates” can’t disguise the fact that the U.S.’s are the world’s highest. That’s why Google keeps as much income overseas as possible; same as GE. These are both well reported in the news. And, if you notice, Google and GE, like Apple, are closely associated with Democrats–again, the party that wants to keep not just the corp tax rate highest, but also raise income tax rates.Â
They sold stuff they made overseas to overseas customers who pay tax overseas. Apple pays tax overseas also. Why would they move it through the US to spend it outside the US when they can have readily money in the markets in which they operate without shuttling it back to head office.
Apple pays taxes on what it earns in each country in which it earns it.
Absolutely bang on, the best reply I have seen in a very long time.
That is what happens when you have the largest corporate tax rates in the world…and people wonder why we cannot compete.  People  who continue to vote for liberals that support this kind of stuff are to blame. Â
Some people are missing the “sense of humor” gene.
I would say this is “absolutely bang on,” but some goof beat me to it.Â
lmao!!!!
@Pdm777 Give me a break! How big does the yachts of Apple executives has to be?! Apple like every other “American” company make their millions; in this case billions by exploiting sweat shop labor.
They had to literally place a net around the building @ Foxconn because there were so many people committing suicide!
Sorry, but every stupid comment doesn’t automatically constitute a joke.
You missed the “lol,” didn’t you?
I didn’t realize I was having a discussion with a 14 year old girl. lol.
…or “Peggy” from USA Prime Credit…