this is how things are done,
number$ are for discussion purposes only.
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Apple-Ireland pays $50 to a Chinese vendor for an iPhone.
Apell-Ireland puts in some programming, costs next to nothin.
Apple-I sells Iphone to Apple-USA for$450.
Apple-USA sell iPhone to AppleStores for $500.
Apple-USA only makes enough markup to pay
for its USA operation, most of the markup shows up
in Ireland.
does anyone at FR actually like this arrangement?
It seems to me most iphones bought in America are shipped directly from China to America
That’s NOT how Apple works, Rocky.
You can see the records in Apple,s books.
The Apple Irish subsidiary holds several things for Apple. It holds Apple’s Intellectual Property and receives the income from licensing and royalties in Ireland. It holds Apple’s after-tax earnings from its world wide operations—except for the U.S. after-tax earnings which are held in the United States—and invests those monies in long and short term securities. The Irish subsidiary reports the earnings and pays income taxes on interest earned, and capital gains, if any, to Ireland. Income taxes on the licensing and royalties, as well as income taxes from Apple products IN Ireland are paid to Ireland. The taxes in Ireland are lower than anywhere else that they can park these holdings while still getting good income.
Apple CEO Tim Cook has stated before Congress that Apple wants to bring these parked monies home to the U.S. but the high cost of repatriation is prohibitive.
If Apple were playing the Double Dutch with an Irish twist game like you think, they could have wound up paying zero income taxes like GE . . . but, they paid 27% of their 2012 earnings in income taxes. QED, they aren’t.