By Ed Sutherland on May 24, 2013
Apple finds itself in unfamiliar territory. Accustom to acting behind the scenes and producing gadgets with overwhelming appeal, the iPhone maker and its CEO Tim Cook are front-and-center in a debate over corporate taxes and how some companies navigate loopholes in the laws to keep billions from the IRS.
In a sign of how concerned Apple is about changing the U.S. tax landscape, it in 2013 may spend nearly $4 million on lobbying Congress – double the amount of just a year ago. Meanwhile, European leaders are asking tech giants to play by the rules… Read More
By Ed Sutherland on May 22, 2013
More than $1 trillion leaked from the tax coffers of EU member states each year, an amount large enough to prompt European leaders Wednesday to hold a summit on reforming corporate taxes. The move follows high-profile investigations showing Apple and other tech giants used European countries to avoid paying taxes in their home countries.
Earlier this week, Apple CEO Tim Cook testified before a Senate subcommittee investigating how the iPhone maker used a hole in Ireland’s tax laws to lower its U.S. tax burden on $74 billion held overseas… Read More
By Ed Sutherland on May 22, 2013
Apple CEO Tim Cook, while squirming Tuesday under Congressional questions about the company’s tax-savings tactics, revealed an interesting tidbit: the Lone Star State will build the the tech giant’s made-in-USA Mac. Testifying before the Senate Permanent Subcommittee on Investigations, Cook said the Mac would be assembled in Texas, with parts coming from other regions of the country… Read More
By Christian Zibreg on May 21, 2013
Apple CEO Tim Cook, along with the company’s finance boss Peter Oppenheimer and Tax Operations head Phillip Bullock, earlier this morning took the witness table at a congressional hearing on Capitol Hill to face U.S. senators who grilled the three men on Apple’s offshore tax practices.
This also means today was the day many Apple bloggers got to become experts on tax reform. We live-blogged the whole thing, but if you had better things to do than sift through the back and forth between Apple execs and senators John McCain and Carl Levin, Apple’s got you covered.
Right on cure, the Cupertino firm has published Cook and Oppenheimer’s opening statements that detail its now widely reported stance on a comprehensive U.S. corporate tax code reform… Read More
By Christian Zibreg on May 21, 2013
Apple CEO Tim Cook, who has been summoned to testify in a Senate hearing on offshore tax practices, now has to do something no other Apple CEO did before him: take the witness table at a congressional hearing on Capitol Hill.
Apple ahead of the hearing published a 17-page written testimony which details its push for a fair tax reform: it should be revenue neutral, Apple writes, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows free movement of capital back to the U.S.
It’s not clear why the U.S. Senators singled out Apple as many other companies don’t repatriate the money earned overseas due to the steep 35 percent tax. It’s important to note that what Apple and others are doing isn’t illegal. Moreover, Apple is compelled to do what is in both their and their shareholders’ best interest.
Anyway, you’ve hopefully grabbed your popcorn because things are about to get quite interesting if not downright messy. Go past the fold for a blow by blow… Read More
By Christian Zibreg on May 20, 2013
Tomorrow will be a pretty big day for Apple CEO Tim Cook, finance boss Peter Oppenheimer and Tax Operations head Phillip Bullock as the three men are scheduled to appear in front of the United States Senate Permanent Subcommittee on Investigation and give testimony regarding the company’s creative approach to tax avoidance.
Apple ahead of the hearing published a lengthy document on its web site which pushes for tax reform on argument that America’s tax system undermines the nation’s competitiveness in the “digital economy” because the current tax code was written for the “industrial era.” As expected, some U.S. senators beg to differ and think Apple is just being creative in its tax avoidance strategy.
This is bound to get more complicated when Tim Cook & Co. find themselves in hot water explaining to U.S. Senators how the company sidesteps U.S. taxes. Get your popcorn out… Read More
By Cody Lee on May 20, 2013
Ahead of Tim Cook’s appearance in front of the US Senate Permanent Subcommittee on Investigation tomorrow, Apple has released a lengthy statement regarding its company tax practices and other items that will be used in its testimony.
Remember, last week we told you that Cook was expected to testify at a senate hearing this Tuesday on “offshore profit shifting,” following Apple’s move to take on domestic debt, rather than use its offshore cash, to avoid $9 billion in taxes…
By Cody Lee on May 16, 2013
Yesterday, word got out that Tim Cook would be testifying at a senate hearing next week over Apple’s tax practices. The hearing was called after the iPad-maker took on billions in debt to fund its shareholder return plan, rather than paying taxes on its offshore cash.
The move reportedly saved the Cupertino company around $9 billion in various tax charges, bringing it to the forefront of an ongoing debate about the legality of offshore tax evasion. But in a recent interview, Tim Cook says that Apple isn’t doing anything wrong… Read More
By Cody Lee on Apr 30, 2013
Tim Cook spent a good 60 minutes addressing the public last week during Apple’s quarterly earnings call. But those hoping to catch him in a more candid setting will be happy to hear that he has a less formal public appearance coming up next month.
Tech blog AllThingsD announced this afternoon that Cook will be a guest speaker at its annual All Things Digital conference in late May. This will be Cook’s second appearance at the conference, and he’s expected to talk about a wide range of topics… Read More
By Ed Sutherland on Apr 26, 2013
To bolster its stock in the eyes of investors, Apple recently announced it would buy back $60 billion worth of shares. Such a move makes sense – after all, the iPhone maker does have this cash hoard of nearly $150 billion. However, it turns out Apple won’t touch that money, opting instead to borrow the funds.
By borrowing the money, Apple keeps its billions out of the reach of U.S. taxes, saving the corporate giant money while also retiring expensive stock dividends.
You didn’t think there was any altruism involved, did you? The move, however, isn’t without its pitfalls. Moreover, Apple isn’t alone in a corporate game of chess where it’s all about manipulating the tax code, according to a report Friday… Read More
By Lory Gil on Apr 24, 2013
Have you ever wondered how Apple CEO Tim Cook drinks his coffee? Does he take it black, or with cream and sugar? Is he a cappuccino man, or an espresso drinker? If you have a few thousand dollars to spare, you could find out.
TechCrunch is reporting that the Robert F Kennedy Center for Justice and Human Rights, with the help of charity marketing firm CharityBuzz, has just launched an auction that will give you the chance to sit down with Apple’s CEO for a cup of joe and the chance to pitch him your ideas for the next big thing… Read More
By Ed Sutherland on Apr 24, 2013
Wall Street has often questioned whether Apple CEO Tim Cook could ever fill the managerial shoes left by co-founder Steve Jobs. What’s more, some anti-Apple analysts like Rob Enderle in an article titled “The impossible task of fixing Apple” opines the board should fire Cook over the recent stock slide.
Despite those doubts, employees of the iPhone maker give Cook an approval rating just shy of Jobs, according to a new survey.
Cook – who oversaw one of Apple’s rockiest financial periods – gets a 93 percent approval rating from company employees, Glassdoor announced. The web site is similar to Yelp, but posts anonymous ratings of corporate management rather than businesses… Read More
By Cody Lee on Apr 23, 2013
Apple’s Q2 earnings conference call just ended, and by most counts it went rather well. The company beat Wall Street estimates for iPhone and iPad sales, and revenue, and announced a huge initiative to return $100 billion back to investors by 2015.
So why has Apple’s stock fallen from its huge after-hours spike back down to where it started? Well, it might have something to do with Tim Cook’s comments on Apple’s product pipeline. The CEO indicated that we won’t see any new stuff until the fall… Read More
By Cody Lee on Apr 23, 2013
Apple just announced its earnings for its first quarter of 2013, second fiscal quarter, and despite all of the lead-in ‘doom’ talk, the numbers are actually very impressive. The company beat Wall Street projections in nearly every metric.
We’re just finishing up the conference call, where Tim Cook and company have made several announcements and dropped a number of impressive statistics. And as usual, we’ve rounded up the 15 most interesting points for you… Read More
By Christian Zibreg on Apr 2, 2013
Pressured by the relentless crusade of state-owned media in China which have been dissing Apple in headlines for days over its warranty practices, Tim Cook yesterday issued an open letter.
Published on Apple’s Chinese web site, the letter is basically a public apology addressed to the company’s customers and fans in the 1.33 billion people country, now Apple’s second-largest market. It’s done its job (for now) as the iPhone maker appears to have earned back the media’s respect in China.
The same major print and broadcast media that have been bad mouthing Apple throughout last week over its supposedly “unparalleled arrogance” is now singing praise to the company, with the country’s Foreign Ministry officially approving Apple’s apology… Read More
By Cody Lee on Apr 1, 2013
If you’ve been reading the news lately, you’ve probably heard that Apple’s been having some major difficulties in China. Over the last few weeks, it’s been getting bashed by the state-run CCTV network and Chinese celebrities over its warranty policies.
The main issue is that some folks believe Apple provides customers in China with worse after-purchase service than it does in other countries, with reports claiming it replaces their goods with recycled components instead of new ones like in the US.
Apple has been fairly quiet on the criticism, until today… Read More
By Ed Sutherland on Mar 15, 2013
It’s uncertain what caused it, but the first cracks are appearing in the honeymoon between Apple CEO Tim Cook and company employees.
After being named the top CEO of 2012, Cook slipped to 18th place, behind Google and Amazon. According to employment site Glassdoor, Apple employees gave Cook a 93 percent approval rating, down from 97 percent last year.
By comparison, Facebook CEO Mark Zuckerberg jumped 14 points to land in the top spot for 2013 with a 99 percent approval rating from employees of the social networking giant… Read More
By Christian Zibreg on Mar 13, 2013
This past Sunday, Bloomberg reported that Apple CEO Tim Cook may be required to testify in an antitrust lawsuit the United States Department of Justice filed against it and major e-book publishers over an alleged price fixing of e-books. Reuters confirms today that U.S. District Judge Denise Cote in Manhattan granted the Justice Department’s request to compel Cook to sit for a deposition.
The Judge said the death of Jobs was a key reason in ordering the deposition. Cook will be testifying for four hours in the lawsuit, a risky move for the CEO and potentially damaging to Apple. The Cupertino company is now the main target of the suit after all named publishers had settled with regulators… Read More
By Ed Sutherland on Mar 11, 2013
Spring is just around the corner, the sun is shining and new concerns about Apple suppliers appear like so many dandelions. Never mind CEO Tim Cook said it’s impossible to determine the health of the iPhone maker simply by looking at suppliers.
Just as Washington, DC trades in political rumors, Wall Street and Silicon Valley are back with new scuttlebutt about Apple’s supply chain.
As a result, Apple’s stock dipped lower Monday on word that orders to suppliers were the worst on record – at least for one analyst. Others believe higher sales of iPad minis versus the larger tablet is cause for concern, while still others forecast a slow summer and then return to profitability… Read More
By Christian Zibreg on Mar 10, 2013
Apple CEO Tim Cook may be required to testify in an antitrust lawsuit the United States Department of Justice filed against it and major e-book publishers over an alleged price fixing of e-books. Cook’s eventual testimony might be risky and could be potentially damaging to his company, now the main target of the suit after all named publishers had settled with regulators.
On the other hand, the CEO could take the opportunity to make a public case for a so-called agency model that the government claims has had anti-competitive impact. The agency model regulates the relationship between Apple and digital content owners who get to pick their iBook prices freely as long as they agree not to offer lower pricing to competitors than they do to Apple.
Business-wise, publishers prefer Apple’s policy over Amazon’s wholesale model where the online retailer sets prices as it sees fit, often hurting publishers’ bottom line by engaging in selling books at a loss just to draw shoppers to its online store… Read More