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Apple should shrink its finance arm before it goes bananas

33 pointsby hvoover 7 years ago

5 comments

ksecover 7 years ago
People continue to say Apple makes huge profits. But in reality they have a world wide market share of 20%, with Gross Margin at ~40%, Net Margin ~20%.<p>Both Gross and Net Margin figures have been very consistent over the years, And increasingly many profits are from the financial arms, and other services.<p>One way to look at it, is that despite iPhone has been getting more expensive over the past years, Apple are actually earning less % on each unit.<p>In some ways, this is worrying.
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qaqover 7 years ago
people like to through notional value of derivatives because those numbers look huge but are generally meaningless &quot;the notional value of JPMorgan’s derivative trading could be as high as $70 trillion&quot; makes for a eye catching statement. Apple most likely is holding derivatives to hedge currency risks and their exposure has very little to do with notional value.
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mankash666over 7 years ago
What should the corporate tax rate, currently at 35%, drop to, for Apple to repatriate foreign cash?<p>It seems like a no brainier to drop the rate when the alternative is financial skullduggery by the Apple capitals of the world. All while the local mom &amp; pops pay the 35% and bear the financial burden of the nation
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likelynewover 7 years ago
Apple has big volume of cash. What exactly is the downside in investing it in riskier assets?
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erikpukinskisover 7 years ago
To what extent can Apple leverage internal research to make these investments? They have sales data and supplier numbers for their products... this could be useful not-public information, no?
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