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Paul Buchheit reports via Common Dreams
An emotional response to any criticism of the Apple Corporation might be anticipated from the users of the company's powerful, practical, popular, and entertaining devices. Accolades to the company and a healthy profit are certainly well-deserved. But much-despised should be the theft from taxpayers and the exploitation of workers and customers, all cloaked within the image of an organization that seems to work magic on our behalf.
1. Apple Took Years of Public Research, Integrated the Results, and Packaged it as Their Own
2. Even After Taking Our Research, Apple Does Everything in its Power to Avoid Taxes
3. Overcharging Customers
The manufacturing cost of a 16 GB iPhone 6 is about $200, and with marketing it comes to about $288. But without an expensive phone contract with Verizon, AT&T, or one of the other wireless carriers, the cost to the customer is at least $650.
4. Underpaying and Mistreating Employees
5. Apple Has Figured Out How to Spend Most of its Untaxed Money on Itself
Apple's View:
The tax-avoiding, research-appropriating, cost-escalating, wage-minimizing, self-enriching Apple Corporation has, according to CEO Tim Cook,[1] a very strong moral compass.
[1] Link in article redirects.
(Score: 4, Insightful) by gnuman on Wednesday May 20 2015, @05:38AM
5. Apple Has Figured Out How to Spend Most of its Untaxed Money on Itself
CITATION NEEDED!
If you have about $200 BILLION in **CASH**, you are really really bad at spending that money on anything. Companies have no business having that much cash on hand. Even banks don't have that much cash on hand. They are not enriching anyone with that cash anyway, it's wasted because it just sits there.
Apple bring the money in, pay the taxes and distribute it to **shareholders**. Companies have no business having cash beyond what they need for R&D and to weather a downturn.
While I agree with most of what is said in this point-form-summary, the last point is completely wrong. The rest are mostly true, though who cares if Apple overcharges customers! There is no such thing. Perhaps then lamentations that Rolex overcharges customers should come next, but then most people don't care about Rolex.
(Score: 5, Insightful) by frojack on Wednesday May 20 2015, @06:20AM
For a guy that leads off demanding a citation, how is it your next paragraph blurts out
Companies have no business having that much cash on hand.
Says who? Do you know what Apple has up their sleeves? What new developments are they funding? Or are they just hunkering down and planning to survive another 20 year drop in business now that Jobs is gone and Android is eating their lunch.
They don't have a vault somewhere stacked with gold like Scrooge McDuck. The money is in the bank, Lots, and lots of banks. And probably thousands of people got home loans at pretty good rates because Apple has no immediate need for the cash. Money never sits idle.
For pete sake that statement was so absurdly off the wall you've got me backing Apple! I dislike them quite strongly, but its their money, WILLINGLY handed to them by their fanboys.
No, you are mistaken. I've always had this sig.
(Score: 0) by Anonymous Coward on Wednesday May 20 2015, @01:54PM
Says who? Do you know what Apple has up their sleeves? What new developments are they funding? Or are they just hunkering down and planning to survive another 20 year drop in business now that Jobs is gone and Android is eating their lunch.
I haven't checked Apple's cash reserves, but you seem to accept the $200 Billion. In that case, theoretically what *could* Apple have up its sleeves to justify having that much cash reserves? What effort would require that much money prior to execution?
I guess building lots of factories or something, but keep in mind all of Intel has a market capitalization of $157 Billion. It's hard to imagine one (or even several) manufacturing projects which would rival all of Intel.
Or let's say they are paying lots of really smart people to develop something really good. Let's further imagine the average pay of that group is $250k (which is obscenely high for an average, but for the sake of argument). That's paying a team of 4000 people for 200 years.
They could be doing something really out-there, like planning to make a Martian colony, but that's so far outside their core business that it should be up to the investors (read: company owners) to decide that and not the management of the company. That would be like buying a house and finding out that it is really a rocket-ship. It may be good, but it wasn't what you had been told you were buying.
If it is that Apple is "just hunkering down and planning to survive another 20 year drop in business" then this is a perfect example of a bad use of cash and the company not acting correctly. Weathering a short-term downfall is fine (and keep in mind that the company can always issue new shares if a downturn if they need a quick influx of cash), but the company managers acting in their own interest by hoarding investor cash because they don't want to lose their jobs is not acting with fiduciary responsibility. Investors should be returned the extra profits (that is the point of the company) where they can do with it what they will.
So I'll turn around and ask you frojack... theoretically speaking what *could* Apple be doing to justify having that much cash reserves? If you can think of any good example, then as you said the burden falls on gnuman to say why he/she thinks Apple is not being responsible. However, I at least can't think of a collection of business ventures for Apple which would warrant having that much cash on hand rather than providing a (one-off, if needed) dividend.
(Score: 5, Funny) by Runaway1956 on Wednesday May 20 2015, @03:06PM
"what *could* Apple have up its sleeves to justify having that much cash reserves?"
They are going to put 500 iEmployees aboard an iRocket, and send them to Mars to erect the first iDome to get the iColony started. Once all the iFans see how wonderful things are on iMars, they'll be fighting each other to enter indentured servitude to Apple in exchange for the privilege of living in the iColony. One million dollars, sign the indenture, and you're on your way. For five million dollars, you also get an autographed Steve Jobs artifact.
Looks like everybody wins!
(Score: 2) by LaminatorX on Thursday May 21 2015, @08:06PM
I wonder why they haven't bought Sony yet. 20% of their reserves would get them Sony.
(Score: 2, Flamebait) by http on Wednesday May 20 2015, @05:55PM
"Money never sits idle."
Worst. Troll. Ever. You've got to make it sound at least plausible.
I browse at -1 when I have mod points. It's unsettling.
(Score: 2) by frojack on Wednesday May 20 2015, @07:22PM
I'm not responsible for your lack of education son.
Go read this article http://www.theregister.co.uk/2015/05/17/why_do_we_bail_banks_out/ [theregister.co.uk]
It gives a workable description of how banks actually work.
You were expected to know this stuff in order to graduate from the 7th grade.
No, you are mistaken. I've always had this sig.
(Score: 2) by gnuman on Wednesday May 20 2015, @08:23PM
And you, son, should know the difference between a bank and Apple. Also,
http://www.cnbc.com/id/101354173 [cnbc.com]
Global companies sitting on $7 trillion cash, double 2003
which means this cash hoarding is not unique to Apple. By sitting on *excess* cash, companies do a disservice to themselves and society in general.
(Score: 2) by frojack on Wednesday May 20 2015, @11:31PM
And WHERE does apple keep its cash?
Why, its in BANKS. Imagine that. In Banks, earning interest. And being loaned out to other patrons.
Are you intentionally being dense? Did you seriously think the phrase "sitting on cash" meant they hire people to sit on stacks of 100 dollar bills?
No, you are mistaken. I've always had this sig.
(Score: 2) by gnuman on Wednesday May 20 2015, @06:46PM
For a guy that leads off demanding a citation, how is it your next paragraph blurts out
Reading comprehention 101? The point said,
"Apple Has Figured Out How to Spend Most of its Untaxed Money on Itself"
I said, CITATION NEEDED, implying they DO NOT. Then I write that having $200B in cash and more coming in faster than they can and are spending seems to reinforce that idea. No? Apple is NOT spending money. They are hoarding it.
Says who? Do you know what Apple has up their sleeves? What new developments are they funding?
They are not funding anything. All they are hoping for is that someone will come up with a "foreign tax holiday" after next election and they will not have to pay taxes on that money. That is extend of "stuff up their sleeves". If Apple doesn't know what to do with the money, they really need to return it to shareholders as a one-time dividend and be done with it.
PS. Yes, I'm an Apple shareholders thanks to S&P 500 index fund. Thus by definition, it's not *THEIR* money, it's *MY* money (at least a tiny slice of it).
(Score: 0) by Anonymous Coward on Friday May 22 2015, @11:57AM
ftfy