From the New York Post:
For Tim Cook, 2016 is a year that can’t end soon enough.
Apple’s chief executive has been battling lackluster results at the Cupertino, Calif.-based tech giant, with critics blaming ho-hum sales on an increasingly stale lineup of gadgets — including the iPhone.
The most recent evidence came Friday, with a report from Nikkei, the Japanese news agency, that Apple will slash production of the iPhone 7 by about 10 percent because it “has sold more sluggishly than expected.”Oh my.
Quarterly sales of the iPhone — by many measures the most successful consumer product in history — dropped for the first time ever.Oh dear.
Cook had pleaded that the iPhone 6S — whose sales dropped 15 percent and 16 percent in the spring and summer quarters, respectively — was more or less a placeholder product ahead of the iPhone 7.Gloom.
Agony on thee.
Deep dark depression -- excessive misery.
So we should all sell our Apple stock, right?
Its stock went up 10% last year.
And it should do better this year.
Indeed, the biggest reason to buy Apple shares, according to many bulls, has nothing to do with the company’s products. Rather, it’s the prospect of a massive stock buyback in the event that Apple gets a tax holiday from the Trump administration to bring its mountain of overseas cash back to the US.Yep.
Make Apple Great Again.
And GE. Google. Microsoft...
President Trump's call to drop the corporate tax on profits parked overseas from 35% down to 10% is a big reason for the stock market rally since Election Day, and why companies are investing in the USA.
The reported overseas profits that could return to the United States under this deal are worth $2.6 Trillion.
The list reportedly includes:
GE $119 billionThat is a lot of money.
Microsoft $92.9 billion
Pfizer $74 billion
Apple $69.7 billion
IBM $61.4 billion
Merck $60 billion
Johnson and Johnson $53.4 billion
Cisco Systems $52.7 billion
Exxon $51 billion
Google $47.4 billion
Corporate taxes are a $500 billion-a-year annual expense for business in the United States. And that is just on the federal level.
Repatriating this money and reducing future corporate taxes from the current 35% down to 15% would free money for investment, such as modernizing and retrofitting factories.
That $2.6 trillion (minus the 10% tax) has potential to revitalize American industry in a way not seen since I was a child.
But hey, The Donald said something eleven years ago so that disqualified him to be president.
By the way, in the 1970s, they said Trump could not get Manhattan going again. He did.
Please read "Trump the Press," in which I skewer media experts who wrongly predicted Trump would lose the Republican nomination. "Trump the Press" is available as a paperback, and on Kindle.
It covers the nomination process only. The general election will be covered in a sequel.
For an autographed copy, email me at DonSurber@GMail.com
Also, "Exceptional Americans" is available in paperback and on Kindle.