Apple is definitely one of the tech giants leading the international market of tech products. They have accumulated vast amount of wealth through their products. The estimated liquid resource of Apple is more than $144.7 billion. We can round it off to $145 billion. They are not only brilliant in designing great tech products but they have also found a way for dodging tax deductions and keeping such a huge amount of profit for themselves sitting in bank accounts. Reportedly the senator subcommittee has cautioned Apple to not keep such huge amount in the American bank accounts. On top of that untouched amount of profit they have earned some $17 billion from financing debts. The capital return plans have helped them achieve a 15 percent increase in dividend returns. Apple is the highest dividend payer of the world.
The Apple CEO, Tim Cook, should pay heed to ways of spending money rather than hoarding it. He is having to justify the reason for such buck piling to the senator subcommittee and if something is not done immediately more brows might get raised. If they deport the heavy amount of cash to foreign places they will have to pay up to 35 percent as tax. Buying or rather conquering properties is a better idea that will work in favor of Apple. With their kind of cash they can easily buy Twitter or Square. Talks about Apple taking over the solar energy converting company Solar City and electric car manufacturer TESLA is also in the air.
Investing in acquisitions which in long term will get them even more returns in terms of stocks and money is what Apple should do. The money they have put in the bank accounts is not growing or increasing due to the low rates of interest. Though they have been very smart about filing tax codes of 74,000 pages and minimized the tax deductions now they have to present themselves regularly in front of the Congress senators for justifying their moves. It is high time Apple makes plans for diversifying their income sources and plan new projects for future development. Returning the cash of its shareholders has not reduced the stock pile much. Tim Cook needs to find immediate ways of funding tech projects for taking Apple to the next level of gigantism.
Good news is that they are improving and growing their app dynasty and is paying their Federal taxes on a regular basis. In 2012 they paid the Federal government some $6 billion as tax and in 2013 they will be paying more. The Apple Campus 2 or the Spaceship Campus is also getting bucks spent on it. This way hopefully Apple will reach new heights of development and buck pile soon.
