Apple CEO Tim Cook revealed on Tuesday that his company's ambitions as far as acquisitions continues apace, with no acquisition apparently too big or too small for the company to consider from a strategic standpoint.
With the newly anointed administration of U.S. President Donald Trump signaling a business-friendly environment, Apple Chief Executive Tim Cook said he's hopeful that his company will be able to finally bring some of its massive $231.3 billion cash hoard back home at a reasonable tax rate.
Apple returned to growth and exceeded Wall Street expectations on Tuesday, when it reported record revenue, profits and iPhone sales for the first quarter of fiscal 2017. Following the news, the company held a conference call with media and analysts, and notes of interest follow.
Apple's holiday 2016 quarter was the company's biggest ever, soaring to new heights on sales of 78.3 million iPhones following the launch of the blockbuster iPhone 7 series.
Apple has missed the deadline to pay the 13 billion euros ($14 billion) the iPhone producer was ordered to pay Ireland in back taxes, but the European Commission is noting that progress is still being made by Apple to comply with its ruling.
After a period of declining sales, Apple is expected to have returned to growth in the holiday 2016 shopping season, riding high on the popularity of the new iPhone 7 series.
Apple's widely-rumored decision to equip a 10th-anniversary iPhone with OLED could add approximately $50 million to incremental costs in the March quarter, eating slightly into profit margins, according to an analyst.
Just days after cashing in a chunk of Apple shares worth $3.6 million, CEO Tim Cook sold another batch worth an almost identical amount in a series of trades this week, according to regulatory filings.
Though iPhone shipments could fall under Wall Street consensus for the December quarter, Apple's revenue from the product should be boosted by high consumer favor for Plus models, an analyst noted on Tuesday.
The Indian government will probably reject Apple's requests for waiving taxes and duties on imports in exchange for setting up local manufacturing, reports claimed on Tuesday ahead of a Wednesday meeting between the company and government officials.
The European Commission's order for Apple to pay Ireland 13 billion euros ($14 billion) in back taxes is an overreach of power, with PricewaterhouseCoopers' head of Irish tax matters Feargal O'Rourke claiming the move is tantamount to a "land grab."
The world's largest asset management firm BlackRock has increased its holdings in Apple, with a regulatory filing revealing its total ownership in the company is now over 322 million shares, worth approximately $38.4 billion.
A small cache of 30,000 Apple shares were sold by Apple Chief Executive Tim Cook this week as part of a scheduled trading plan, with Cook receiving a total of $3.6 million from the company stock sale.
Given the Apple iPhone user base expansion, Apple's Services business led by the App Store is forecast to not only be the prime mover of Apple's income expansion, but also be the largest contributor to gross margin improvements as well.
Investment bank Morgan Stanley expects Apple to see decreased iPhone 7 demand in the coming months as buyers anticipate this year's "iPhone 8" revamp, one model of which is expected to feature a drastic redesign and exotic technologies like an OLED display.
Given current speculation on tax reform in the U.S., analysts predict that with all other factors unchanged Apple will see a negative impact on its cash hoard because of a repatriation tax, and an increase on taxes paid to import manufactured goods from China, but an overall slight uptick on earnings per share as a result of all factors.
Apple notified the U.S. Securities and Exchange Commission that it will be holding its annual shareholder meeting at 9 a.m. Pacific on Feb. 28 to discuss proposals from the company's board of directors.
Apple on Wednesday announced it will on Jan. 31 report quarterly earnings for the first fiscal quarter of 2017, revealing performance metrics for the new iPhone 7 series and the lucrative holiday shopping season.
Apple has confirmed its $1 billion investment in SoftBank's $100 billion SoftBank Vision Fund, of which, the upcoming Trump administration has claimed that $50 billion will be spent on U.S.-based businesses.
Apple could beat its quarterly record for revenue set at this time last year, on the strength of the iPhone, increased Mac sales, and services, one analyst believes. But that growth could also be at the cost of 2017 expansion and a soft "iPhone 8" demand.
{{ summary }}
Mike Wuerthele
Neil Hughes
AppleInsider Staff
Malcolm Owen
Roger Fingas
Mikey Campbell
