Apple Predicted to Become Trillion Dollar Company Within 12 Months

[JaniceAndRustyWilliams]

Sure - then they can make some major charitable donations. I don't see that happening from Apple's quarter. Not when they have so much cash in the bank that could be donated.

Also, whilst I understand your premise, I'm not convinced that all of us stopping paying taxes and instead making equivalent donations to our favoured area/cause/community is the way to have a balanced and stable society. Like it or not, in my opinion, someone has to pay for all the basic services we each use and require.

Charitable donations comes out of an expensive auditing or consulting firm's playbook. I don't recall which one exactly, but likely Arthur Andersen.

The premise was to "sell" to companies the idea of globalization and a global economy; save money by creating "shell" corporations in tax-free areas (or countries with very little tax) and then, without paying repatriation tax. Then claim the tax money (which would normally be paid) as profit.

However, because the cash-equivalents are in foreign accounts, all SEC documents would have to calculate account balances in US-dollar amounts when reporting them to investors. Those account balances would be calculated based on exchange rates "published in the WallStreet Journal on XYZ date".

So it's all legal, but if you invest in any stock (not just Apple), and in investor documents, it is disclosed that they rely on WallStreet Journal exchange data, that company likely has a bank account overseas.

Also, and during the US Presidential Election, Hillary (or someon on Hillary's Staff) disclosed that the last time foreign money was re-patriated on a low-tax basis was during Bill Clinton years. Money could enter the US on a nearly tax-free basis for a short period of time. Companies like Apple, along with the banks, are likely waiting for another tax holiday.

So what happened was US Companies brought their money home primarily for acquisitions of smaller companies. If memory serves me correctly, this was also the time Germany found a loophole that benefited their economy as well... The Automotive company Chrysler was bought by Dahmler Benz, (Remember 'Dr. Z' commercials?) and Germany's monopoly telecommunications giant bought US-based VoiceStream, Ariel, Omnipoint and PowerTel networks; renamed them as T-Mobile USA. Also, a number of Pharmaceutical companies merged, and France-based Total Petroleum bought US-based oil companies.

All that was great for large banks in NY who worked to transact those deals.

I'm going off of memory on this so feel free to share any details.

 

[travelsheep]

Hopefully they become big enough so they can afford designers that can build a PRO laptop with ports

 

[deckard666]

What about the families who 401k and other investments rely on companies like Apple doing well in the stock market?

Yeah cause the wealth inequality has got much better in the last decade ?

 

[StevieD100]

There is nothing quite like an Apple fanatic.

There is nothing in this world like a rabid Apple hater.

There. That's better isn't it.
Apple do make cockups. Pretty well every company in existence does that. Life is a compromise so what's a few compromises in the tech you use eh? not a big deal.
Don't get stressed by this sort of codswallop. Shug your shoulders, say 'Meh' and get on with your life unless of course you are a Fanatic or hater then in that case, the men in white coats will be along shortly to take you to a place of safety.

 

[Abazigal]

Hopefully they become big enough so they can afford designers that can build a PRO laptop with ports

Give it up. That ship sailed half a year ago.

 

[Dave245]

And those gigantic earnings are just sitting unethically on foreign bank accounts, doing nothing for anybody - even by capitalistic standards, that's a useless waste. The money that Apple, Microsoft and other mega-corporations are stock-piling just to evade taxes could REALLY solve a lot of problems on this planet and could REALLY turn this world into a better place. But instead, we applaud them for doing absolutely nothing with it. That's not just sick, that's revolting.

How is that Apple's responsibility? they employ people keeping them in jobs, they recycle and so on, they do their bit. Just because they make a lot of money doesn't mean it's unethical if they choose to put it in the bank. I also don't see how exactly it's revolting?

Apple products have made a BIG difference in the world, they enable people to see each other (through FaceTime) across the world, they allow people with disabilities to use iPhone's Mac's iPad's and so on also allowing them to work using Mac's. They are clearly making products that people WANT to use! those of us who are lucky enough to have great jobs and a decent amount of expendable income like to buy Apple products.

I make no apologies for making Apple richer, something i will be doing for the considerable future!

 

[Cmdrx3]

Back in the early 1990s, I worked for a large toy company overseeing the companies few Macs. Everyone in IT said that Apple was a dead company. Yesterday, Microsoft announce that they are laying off 3000 people. *points and laughs*

Why would you point and laugh and people losing their jobs.

 

[AZ63]

Hmm. I think it's come mostly from making products socially desirable, and overcharging to maintain massive profit margins. Apple wouldn't be half the value if they products were priced reasonably.

How much cheaper is Samsung's flagship smartphone?
I see Apple as a luxury brand. Are there cars, watches, shoes, clothing, etc., etc. in the luxury arena?
Apple has done a masterful job of creating a desire for their product as a luxury item but just in reach of a great majority of people. What other luxury manufacturer has done that? I can afford to buy a new Camry but I can't reach the BMWs, Jaguars, Mercedes of the car world. The same could be said of the other items I listed.
No one is forced to buy an iPhone but many users continue to buy them again and again because of the reach ability of price and the joy of use. People buy the iPhone in massive numbers because the benefits of owning the phone is well worth the price of admission. IMHO.

 

[AsprineTm]

While they keep milking their customers with their overpriced ecosystem

 

[wigby]

Well, their success clearly confirms that they obviously produce products that people WANT. But seriously - where and how exactly do Apple products make this WORLD a better place...? And those gigantic earnings are just sitting unethically on foreign bank accounts, doing nothing for anybody - even by capitalistic standards, that's a useless waste. The money that Apple, Microsoft and other mega-corporations are stock-piling just to evade taxes could REALLY solve a lot of problems on this planet and could REALLY turn this world into a better place. But instead, we applaud them for doing absolutely nothing with it. That's not just sick, that's revolting.

Do you seriously think that the government has a better handle on spending than Apple or any company for that matter? I would rather Apple throw a billion dollar party than hand over a penny more than they legally have to.

And as far as A Better World... would you prefer that Apple blow their billions on moonshots instead of well thought out and well executed products for billions of customers? And what about their public drive for inclusion and accessibility in every product? You can disagree with their approach or politics but at least they have a public policy trying to make the world better.

 

[AZ63]

While they keep milking their customers with their overpriced ecosystem

If it was "overpriced" nobody would be buying their product. You might want to consider the idea that since people are paying the price asked and that there are many repeat buyers that people feel that the product is not "overpriced"

 

[convergent]

There is nothing in this world like a rabid Apple hater.

There. That's better isn't it.
Apple do make cockups. Pretty well every company in existence does that. Life is a compromise so what's a few compromises in the tech you use eh? not a big deal.
Don't get stressed by this sort of codswallop. Shug your shoulders, say 'Meh' and get on with your life unless of course you are a Fanatic or hater then in that case, the men in white coats will be along shortly to take you to a place of safety.

You just proved my point. Did you even read the post where I made that comment? I was responding to some idiotitic statement about Apple being the only company that deserves their profits.

It's comical that you think you made some witty comeback. Nothing about what I said had to do with hate. I was simply calling out someone for a ridiculous statement.

What you said doesn't even make sense.

 

[BvizioN]

Hmm. I think it's come mostly from making products socially desirable, and overcharging to maintain massive profit margins. Apple wouldn't be half the value if they products were priced reasonably.

Socially desirable? What does that even mean? There are countless other products from other companies out there that do the stuff Apple products do. You saying that people like to pay the extra and buy Apple products because of some sort of trend? I tell you why I personally buy Apple products, though I have tried almost all alternatives out there. Because they do work with the least amount of hassle. In my experience better then any other out there. That's why I pay the extra. But that's just me. Hundreds of millions of others could just be "stupid" and follow the trend.

 

[Neepman]

If people cared about other people they wouldn't support companies that build products with slaves.!

You might want to ask those people who are the "slaves" if they feel they are slaves or just happy to have a job thats likely a jillion times better than any opportunity offered in their commie craphole of a country.

 

[bobmepp]

Well.... any company that manages to sell a few iMacs Pro at that price will achieve that goal in no time.

The new Dell all-in-one workstation, configured similarly, is about the same price. Workstations aren't cheap. Neither the Dell or the iMac Pro appear to be over-priced.

 

[dampfnudel]

After they hit the trillion dollar mark, they will finally have enough money to phase out those 5400 rpm hard drives.

EDIT — I meant 5400 rpm. Sorry for this mistake!

How do you think they got there? Being strategically cheap with components while charging prices that are anything but cheap has its benefits.

 

[mudflap]

Trillion-dollar company, by saving tax from 5400rpm hard drives.

People keep complaining about the 5400 RPM drives. But has anyone ever benchmarked those models against 7200 RPM drives? Does anyone know for a fact they're significantly slower?

Specs aren't everything. On paper, the flagship Samsung smartphones should be faster than the iPhone but that's been disproven countless times.

 

[pezkiln]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

How exactly has apple made the world a better place? They make good consumer products but they're not exactly superheroes

 

[chatin]

Apple is reseting back to 3% marketshare in just about all categories. Significant iTunes marketshare loss is hitting the wire in the last few hours. I would be more supportive of the company if I weren't locked out of my iTunes since March because of device replacement.

 

[Velli]

How exactly has apple made the world a better place? They make good consumer products but they're not exactly superheroes

Anyone saying iPhones do not make the world a better place, has never seen a blind guy with an iPhone.

 

[Avieshek]

People keep complaining about the 5400 RPM drives. But has anyone ever benchmarked those models against 7200 RPM drives? Does anyone know for a fact they're significantly slower?

Specs aren't everything. On paper, the flagship Samsung smartphones should be faster than the iPhone but that's been disproven countless times.

No one even asking for a hard drive.

 

[44267547]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

How exactly has apple made the world a better place? They make good consumer products but they're not exactly superheroes

@pezkiln makes a good point. Apple is an electronic company to generate a profit and they make exceptional products, which is their primary role.

@Sunny1990. So.. you are basically saying what exactly? Besides environmental standards which they adhere to, what are you suggesting that Apple does to make the world a better place? Or are you just saying "Apple makes the world a better place" because you truly don't understand why? I'm guessing the latter being you that's what you believe for no other reason.

 

[pppx3]

Interesting to note that their business model (which was originally Steve's biggest focus) or providing a complete software/hardware solution that is not licensing the OS to other manufacturers IS FINALLY PAYING OFF.
Microsoft have done well with Surface and Windows 10, but I honestly think they are shooting themselves in the foot for releasing something that competes with all the other products out there. Same goes for the Samsung/Phone/Andriod thing. They've all done well, but at the end of the day, when you have a product that stands out from the rest, both in hardware and software. It may be "perception", with most components now being much the same across the board, however, it's about having a single entity represent, support and e around for another 20+ years.
Mark my words, the tech world is headed for a major shake up and I think Apple will be one of the few to survive.

 

[LordVic]

Interesting to note that their business model (which was originally Steve's biggest focus) or providing a complete software/hardware solution that is not licensing the OS to other manufacturers IS FINALLY PAYING OFF.
Microsoft have done well with Surface and Windows 10, but I honestly think they are shooting themselves in the foot for releasing something that competes with all the other products out there. Same goes for the Samsung/Phone/Andriod thing. They've all done well, but at the end of the day, when you have a product that stands out from the rest, both in hardware and software. It may be "perception", with most components now being much the same across the board, however, it's about having a single entity represent, support and e around for another 20+ years.
Mark my words, the tech world is headed for a major shake up and I think Apple will be one of the few to survive.

very valid points. I don't think Microsoft made a mistake, it' sjust a completely different business model

Apple has always been about differentiation. They've never always been the best/fastest/most used. But they've always had some little thing about everything they released that sets it apart from everyone else. This is why they're able to generally charge a premium over the commoditized competition.

However, I do agree that something is going to be shaking up the industry. As the PC, phone and tech industry has increasingly become more and more mature, Apple and the competition have been able to differentiate from eachother less and less, which makes "premium" harder and harder to justify.

I don't think Apple is going to continue growing forever. At somepoint, they'll hit a wall with product differntiation, and be forced to either come up with something else to do so, or become like the competition, and a commodity manufacturers thats right in there with the pack.

will they hit 1trillion in value? damned if I know though!

 

[farmboy]

Don't forget it was MicroSoft who bailed out Apple back then, and kept them from insolvency with a timely loan.
Quite a magnanimous gesture from Bill. People losing their job is not a laughing matter.

The Urban Myth That Just Won't Die. Microsoft's alleged $150 million check was in partial settlement of a lawsuit (most likely related to stolen QuickTime video acceleration code used in Video for Windows), and was just an initial payment according to Fred Anderson, Apple CFO at the time. The exact total amounts have never been publicly revealed, but could have been up to a Billion. The settlement also included cross licensing of patents (including that stolen code), and MS promise to continue Mac versions of Word and Excel for five more years.

By the way, back then Apple had never had less than $400 million in the bank, with little to no long term debt. Never near "insolvency".