Apple Inc.(NASDAQ:AAPL) is looking forward to being one of the many beneficiaries of the newly anointed administration of U.S. President Donald Trump. All along his campaigns, Trump urged the U.S firms that have operations in other countries to bring them back home. He also kept on insisting on the need to bring back the millions of dollars stashed overseas, promising leniency on tax penalties. For the longest time possible, Apple has been an advocate of the so-called “repatriation holiday”, which is now not far from becoming a reality.
CEO Tim Cook is excited at the possibility of having the congress pass tax reform this year. This is the only way that would help in loosening the taxes Apple would have to pay to bring back home the cash overseas. Apparently, to Cook, it did matter who would take the leadership but all through the intense campaigns, he remained convinced about a possible tax reform.
Apple has $230.2 billion in cash overseas
The tech firm is one of those that have the highest amounts hoarded overseas. Its earnings report reads out a figure close to $230.2 billion which translates to 94% of its $246.1 billion. However, Cook says there are signs of cooperation from both Republicans and Democrats to implement lenient tax policies, which will help in bringing all these funds back to the US.
On the company’s earnings call, Cook noted, “I am optimistic on what I’m hearing for some tax reform this year. It seems there are people in both parties that would favor repatriation as part of that.”
Is it likely that Apple will use the cash for acquisitions purposes?
There has been a wave of acquisitions and buyouts in the recent past. However, Cook declined to divulge details on such possibilities although he did mention that Apple was “putting its toe in the water of original content. There are speculations of a roll out of new original content under the Apple Music umbrella, which is expected to run throughout the year. Meanwhile Apple’ stock closed at $121.35 a fall of $0.28 or 0.23%.