Apple has set a new record with the amount of money they made this quarter, setting a record of $261.5 billion, compared to the $256.8 billion the company made last quarter, which is a 13% increase year over year.
The amount of money made by Apple is so massive that the company could buy the computer technology corporation Oracle and still have $54 billion left over to buy Walmart and AT&T. Apple isn’t a company that’s known for making expensive and risky deals with other companies, aside from investing in Didi and Beats, Apple prefers to focus on the development and research of their technology. The company has spent an approximate total of $2.94 billion in research and development during the quarter, an increase from the $2.56 billion spent on research and development in the previous quarter. Investors claim that the increase in Apple’s cash pile is due to Apple’s constant release of new devices such as the iPad Pro, iPhone 7, and Apple Watch Series 2.
Investors also believe that this amount of cash will only increase upon the release of Apple’s iPhone 8, which has been the center of many rumors, speculations, and excitement for fans. Apple stores its cash or rather 94% of the total overseas. Apple has also been working on selling more of their technology overseas, the company has recently been focusing on a new store in Dubai as a new way to increase their retail sales even after having sales during the quarter seeing a double-digit increase in the U.S., Japan, Germany, France, and China. But with the increase in money for Apple also comes steep tax penalties associated with repatriating foreign earnings, CEO of Apple Tim Cook who has been an advocate for tax reform, including the measure proposed by Donald Trump, to have a one-time cut repatriation taxes. This could allow Apple to focus putting their money towards buying another company or returning earnings to shareholders.
However, Apple’s main goal seems to be advancing the advancing their technology for their devices after investing $1 billion in advanced manufacturing in the U.S. as well as investing in American resources such as education. Apple declared a 63 cent dividend this year for during the third quarters, as well stating that they will have “some things to say” concerning Apple’s U.S. employees, shareholder Ross Gerber who is hoping for a smart deal from Apple had this to say, “The Beats acquisition was such a great move for them …. it really shows how smart good acquisitions are for Apple, I think they need to be in other businesses, I think they need to diversify so we’re not all out here praying for the iPhone 8 to be something super special, you know.” Overall Apple’s sales and profits seem o be going well for the company and will only increase upon the release of iPhone 8.
Featured Image via Wikimedia Commons
