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nfultz1

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  • Apple Does Not Have $137 Billion In Cash [View article]
    This seems to be a common misunderstanding. As the article states, the taxes have been accounted for from an income statement perspective (they have already been expensed) From a balance sheet perspective they are in a liabilities account because it represents money they owe but haven't paid. The cash balance is the cash balance. From an accounting standpoint it has to be. The cash balance must be reconciled with the sum balance of all accounts it's held in.
    Mar 5 01:36 PM | Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    If the government repatriates the profits, it will show as income on the income statement and on the balance sheet it will reduce liabilities thus increasing net assets. The cash balance will not be affected since the taxes were never paid using cash or otherwise.
    Mar 5 08:49 AM | 2 Likes Like |Link to Comment
  • Apple Does Not Have $137 Billion In Cash [View article]
    Actually, I think the taxes were expensed, but are being held in a liabilities account. So it's reflected in net assets, but the cash balance is the cash balance.
    Mar 4 11:02 PM | 3 Likes Like |Link to Comment
  • In Defense Of Apple: Battling The Mounting Hysteria [View article]
    Good article and analysis. I think Apple will need to release a new innovation before the fear will subside. I think we will see the stock begin to stabilize soon. With expectations finally being reset, it will be able to start growing again.
    Jan 24 09:40 PM | 1 Like Like |Link to Comment
  • Look Out Below: Apple's Unit Profits Are Falling [View article]
    Using per unit operating income to determine the direction of a company can be misleading. A big portion of operating income is fixed costs. So the more units sold in a quarter will increase the per unit operating income. Considering Apple tends to sell more this time of year plus a new product refresh, could push that figure higher. Also, even if per unit income declines, if overall net income increases, it's still positive for Apple shareholders.

    The foundation to arguments like yours and similar articles is that Apple cannot possibly continue to demand a premium price for their products given the competitive landscape. I would argue that Apple is much better positioned to handle margin compression than their competitors. If margins compress (lower prices) but volume increases, Apple's total profit can still increase. They have a relatively small market share except for tablets but they are in a growing market, especially tablets. However, many of the Android device manufacturers are already lowering prices to gain market share. How will they keep their relatively larger market share if Apple lowers prices? They can't cut prices more because they have no margin to compress.

    If Apple doesn't lower prices but volume continues to rise, their profit will be even greater. I would wait until Y/Y earnings stagnate or fall before I would become bearish. Looking at Q/Q for Apple has historically been very misleading.
    Dec 11 02:52 PM | 3 Likes Like |Link to Comment
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