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Apple now has more liquid cash and marketable securities on hand than the US government, according to financial statements released by the US Treasury on Wednesday.
Last week Apple posted their best-ever quarter with $28.57 billion in revenue and a net profit of $7.31 billion. Stock prices soared as the news hit Wall Street with shares topping out at over $400 earlier this week. The report shows Apple had $76.2 billion in cash and securities on hand at the end of last month.
Meanwhile, the US government reported an operating cash balance of only $73.8 billion on Wednesday. The numbers are a bit misleading, however, as the federal government brings in a lot more money than Apple from tax revenue. The federal numbers represent how much money the government has on hand before they hit the virtual “debt ceiling” while Apple’s money is liquid assets.
The key difference is that Apple knows how to live on less than they make, a concept that the US government hasn’t quite figured out yet.
Even if the world’s largest tech company were to loan Uncle Sam all of its available cash, the United States would blow through it in about eight days. According to Fortune, the US spends more than $10 billion a day.
Key to Apple’s success is their growing smartphone market share, which now ranks number one ahead of Nokia and Samsung in the global smartphone market. iPhone sales are expected to remain strong as a new model is scheduled for release in September.
User Comments: 38
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That is some cheap, misleading title. Come on Techspot, you're better than this.
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Yet everyone is using a similar title: http://www.bbc.co.uk/news/technology-14340470 [link]
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not too worry, the US government will have a couple trillion in a few days. A couple fake trillion dollars that they will never be able to pay back. Money is an illusion.
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...and a lot less debt ...and still this guy can't afford to buy a new shirt for himself.
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Trillionsin said:
I have more money than the US Goverment...
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The US should institute their own version of the Apple Tax, and take 30% of their cash for the rights to exclusively sell Apple software and hardware in the US.
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trillionsin said:
I have more money than the US Goverment...
Unless you have several trillion dollars in debt, you've definitely got more. The US government has grown far too large to be effective when its the biggest employer in the country. Not even large companies like Coca Cola have more employees and they are a world wide business.
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Isn't every country has their government as the biggest employer?
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technically we all have more money then the government but also in a way we don't. Our finances our based of the value of the dollar.... that means our wealth is based on the government's wealth. Therefore we all share the government's debt equally.... therefore we don't have more money then the government....
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And yet republicans are afraid to raise taxes on corporations. LOL. Some of our politicians are absolutely crazy!!!
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And yet republicans are afraid to raise taxes on corporations. LOL. Some of our politicians are absolutely crazy!!!
I don't want to, nor am I skilled enough, to debate politics. But, to me, it seems that if corp taxes go up, they wouldn't care. They'd just inflate the price to the consumer to make up for the tax. Then the consumer ends up indirectly getting taxed for the corporation..
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That's akin to being able to raise your own salary at will and just spending and spending, but at some point your employer is going to go bankrupt supporting you. If your employer goes out of business, you'll _never_ get the money to pay off your massive debt. You could tax every dollar the rich have in this country and it wouldn't even put a dent in our current debt.
The republicans don't want to raise taxes because that would hurt the economy even more than it already has been. Lower taxes encourage businesses to spend money and hire, which creates more taxpayers. More taxpayers is what we need, not higher taxes. And being able to live within its means is something else the government needs to learn.
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"They'd just inflate the price to the consumer to make up for the tax. Then the consumer ends up indirectly getting taxed for the corporation.. "
That's exactly right. This is why it's often said that "corporations don't pay taxes". They just charge the consumer more.
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Trillionsin said:gwailo247 said:
The US should institute their own version of the Apple Tax, and take 30% of their cash for the rights to exclusively sell Apple software and hardware in the US.
This would just turn into an additional tax on the consumers.... not Apple.
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nor am I skilled enough, to debate politics.
I highly doubt that's true.
They'd just inflate the price to the consumer to make up for the tax. Then the consumer ends up indirectly getting taxed for the corporation...and you have history on your side for this.
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Guest said:
" Lower taxes encourage businesses to spend money and hire, which creates more taxpayers. More taxpayers is what we need, not higher taxes."
i would vote for you
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I don't want to, nor am I skilled enough, to debate politics. But, to me, it seems that if corp taxes go up, they wouldn't care. They'd just inflate the price to the consumer to make up for the tax. Then the consumer ends up indirectly getting taxed for the corporation..I think wording this; "Then the consumer ends up indirectly getting taxed >>BY<< the corporation", would be semantically more precise!Apple now has more liquid cash and marketable securities on hand than the US government, according to financial statements released by the US Treasury on Wednesday.But we have the US Mint! Deal with that Apple......And all they have to do is let their printing presses run steady for a few days, and Apple's cash and securities wouldn't be worth squat.
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From guest:
"The republicans don't want to raise taxes because that would hurt the economy even more than it already has been. Lower taxes encourage businesses to spend money and hire, which creates more taxpayers.
More taxpayers is what we need, not higher taxes. And being able to live within its means is something else the government needs to learn."
The question is ---where will businesses spend and hire?
China India, Brazil---Surely not the US.
GE is moving its Xray division to China from the US.
HP is spending tons of money hiring engineers and building facilities in CHINA.
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stewi0001 said:
all I got to say is that there is alot of wasteful spending and I ain't getting in any farther than that.
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The article is ok but the title is misleading.
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"The US government has grown far too large to be effective when its the biggest employer in the country. "
There is the root of the problem. If corporations would hire more here and less overseas it would help our economy greatly. Employees now are not partners but cost centers, easily replaced with someone cheaper, preferably with VISA status. Except of course you are in the upper corporate echelons.
Otherwise you are a corporate drone whose existence is to hang on until the next almost unattainable s.m.a.r.t. objective or unreasonable SLA agreement forces you out.
Sad to say that the government at least gives decent livable wages to police, firemen, teachers, others. Otherwise if it was privatized they'd all be working minimum wage by now.
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Sadly, the labor unions have accelerated rather than inhibited this process. American workers have simply priced themselves out of the market, but are a bit too accustomed to a belief of entitlement to stop the slide.
There is the root of the problem. If corporations would hire more here and less overseas it would help our economy greatly. Employees now are not partners but cost centers, easily replaced with someone cheaper, preferably with VISA status. Except of course you are in the upper corporate echelons.
Granted, corporate greed is a huge factor, but still, somebody's always hungrier than an American, even when he's starving.
You can't work for high wages, and simultaneously demand cheap goods. It's a very simple concept, that nobody here seems to be able to grasp. Cue China's industrial revolution.
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Then the government must take what it needs.
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I wonder if people will notice if I debate myself using multiple guest posts.
Or maybe I'll make a statement and have a hoard of guests support me.
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Darth Shiv said:
The republicans don't want to raise taxes because that would hurt the economy even more than it already has been. Lower taxes encourage businesses to spend money and hire, which creates more taxpayers.More taxpayers is what we need, not higher taxes. And being able to live within its means is something else the government needs to learn.
Increasing the debt ceiling periodically does NOT mean you cannot live within your means. If your economy is growing and therefore the tax collected grows with it, you can indefinitely keep repeating this cycle without risk of over-borrowing.
Analogous to your pay being increased every year. What you could do is raise the credit limit on your credit card each year a certain amount to match what you can now afford to repay.
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