Billion dollar worth Apple acquires loan!
This is the same Apple company that announced last week that it made a profit of $18 billion during the holiday quarter.
The technology magnate company has sold bonds worth $6.5 billion in order to raise funds. This has led many to wonder as to why a financially sound company which has $178 billion in cash, such as Apple would require a loan? The answer many are predicting to that question, is tax. Apple has billions of cash reserve stashed away offshore. Apple Inc. has no intention of bringing this offshore reserve back into the U.S until some sort of tax restrictions come into play. Until that money reaches the United States shore, Apple can defer tax payments on that reserve. If Apple decides to being back its hoarded cash back into the United States, this could result in payment of thirty-five percent of that amount as taxes.
Hence, instead Apple Inc. would rather wait it out for any new laws to pass that might grant them taxation relaxations and raise finance in the United States by selling bonds.
Apple was founded by Steve Jobs, Steve Wozniak and Ronal Wayne on 1st April, 1976. Initially, it was just a corporation whose aim was to sell personal computers. Now it designs, develops and sells hardware products, consumer electronics, computer software and personal computers. The Mac line of computers, iPhone smart phone, iPad tablet and iPod are its most popular products. It operates the Apple Store and iTunes Store as well.
Apple’s total annual reserve stood at $182 billion in 2014. Due to its quality oriented products and their excellent performance, Apple Inc enjoys a unique brand loyalty among its consumers that remains unmatched till date.