Comments on: Counterparties: Apple’s superlative borrowing http://blogs.reuters.com/felix-salmon/2013/04/30/counterparties-apples-superlative-borrowing/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: UICJim http://blogs.reuters.com/felix-salmon/2013/04/30/counterparties-apples-superlative-borrowing/comment-page-1/#comment-46832 Wed, 01 May 2013 15:12:52 +0000 http://blogs.reuters.com/felix-salmon/?p=21540#comment-46832 This is a great move by Apple. I think they are going to slowly but surely lose their marketing appeal and innovation edge. This is one way to not only keep people happy when they think about your company, but keep the mainstream media talking about you as well.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2013/04/30/counterparties-apples-superlative-borrowing/comment-page-1/#comment-46826 Wed, 01 May 2013 01:27:15 +0000 http://blogs.reuters.com/felix-salmon/?p=21540#comment-46826 AAPL has largely avoided taxation on its substantial earnings. This move however allows the payment of a much larger dividend which will send Billions to the US Treasury via the investors who receive the dividend and pay the just raised dividend tax.

AAPL could spend/invest/squander the money any number of ways. They could buy a chip company like Qualcom or Nivida. They could buy spectrum rights, or an entire cellphone company like sprint or even Vodafone. They could buy up content producers like CBS, Sony, Viacom.

Instead they are choosing to let their investors choose how to allocate that capital. In making that choice rather than reinvest all their profits like Berkshire AAPL is allowing more of the profit they generate to be taxed.

By paying

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