Apple Could Owe More Than $8 Billion in European Tax Probe

Apple could owe more than $8 billion in back taxes if the European Commission finds issue with the iPhone maker’s corporate tax policies in Ireland, according to analysis by Bloomberg Intelligence.

Apple is one of several multinational corporations that have been scrutinized for corporate tax avoidance in Europe over the past few years. The European Commission began Apple’s tax probe in June 2014, and formally accused the iPhone maker of receiving illegal state aid from Ireland three months later.

The company’s $64.1 billion in profit generated from 2004 to 2012 could be subject to a 12.5% tax rate, compared to its current foreign tax rate of about 1.8%, depending on the outcome of the investigation. A decision in the probe is expected in Brussels by March, possibly after the 2016 Irish election.

Apple’s tax breakdown in Ireland (Image: Bloomberg Intelligence)

Apple operates multiple subsidiary companies in Ireland to pay significantly less tax outside the U.S., where it earns about 55% of its revenue. Apple continues to deny any wrongdoing, and both the company and Ireland vow to take the European Commission to court over any negative verdict.

Last month, Apple agreed to pay 318 million euros in Italy to settle an investigation that accused the company of booking profits generated in Italy through an Irish subsidiary, in an effort to lower its taxable income base and save 879 million euros between 2008 and 2013. Italian regulators concluded that tax probe in March.

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Tags: corporate tax, European Commission, Ireland
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Apple’s Plus-sized iPhones are growing more popular

The share of Apple’s iPhone Plus models is gradually growing compared to other “regular size” iPhones, according to a new report from Consumer Intelligence Research Partners (CIRP). The research firm notes that the percentage of iPhone customers who bought the larger size iPhone 6s Plus in its first thirty days on sale increased significantly from the […]

(via Cult of Mac – Tech and culture through an Apple lens)


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Future Siri could switch user profiles based on voice

As Apple rolls out Siri beyond the iPhone and into shared devices like the iPad and, most recently, Apple TV, Cupertino’s engineers have been working on a way of letting its voice activation technology pick up individual users, and offer them customized options based on their past preferences. Published today as the patent “User profiling […]

(via Cult of Mac – Tech and culture through an Apple lens)


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Majority of iPhone users would consider buying Apple Car

The idea that Apple is working on a car is something the company still hasn’t admitted to, other than describing the product category as the “ultimate mobile device,” but that’s not going to stop industry-watchers from speculating about it. To whit,…Read more ›

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Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

Apple Watch sales in the United States appear to have slowed down significantly in June based on new data that research firm Slice Intelligence shared with MarketWatch. Following a steep decline in the days after Apple Watch pre-orders commenced, which is to be expected of any product, daily U.S. sales remained relatively stable through May before experiencing a large drop-off last month as launch momentum begins to wane.

The report claims that Apple is now selling fewer than 20,000 watches per day in the United States, and fewer than 10,000 on certain days, while the logarithmic chart above indicates that sales dipped to as low as 4,000 to 5,000 units per day in late June. The data does not account for sales in Canada, Australia, United Kingdom or the twelve other countries where the Apple Watch is sold outside of the United States.

Slice Intelligence claims that two-thirds of Apple Watches sold to date have been the entry-level Sport model, far outselling the more expensive stainless steel Watch and 18-karat gold Edition models that start at $549 and $10,000 respectively. The research firm estimates that Apple has sold fewer than 2,000 luxury Apple Watch Edition models in the U.S. through June.

Slice Intelligence previously estimated 1 million Apple Watch pre-orders at launch, an average 30,000 Apple Watch sales per day in late May and an estimated 2.8 million total sales as of mid June. The research firm’s sales estimates are based on e-receipt data from online shoppers in the United States that opted-in to have their inboxes tracked for email receipts.

Apple has not publicly disclosed any Apple Watch sales figures since the wrist-worn device launched in April, and will be grouping the device under its „Other Products“ category, which combines sales of Apple Watch, iPod, Apple TV, Beats Electronics and accessories, in its quarterly fiscal reports. Apple’s Q3 FY 2015 results are scheduled to be released on July 21 at 2:00 PM Pacific.



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Apple Watch Orders Estimated to Average 30,000 Per Day in U.S. After Initial Surge

An estimated 2.5 million Apple Watch orders have been processed in the United States in the first five weeks of availability, according to Slice Intelligence (via Quartz). Extrapolating from the e-receipts of about 14,000 online shoppers who use Slice’s services, more than half of the orders placed so far came on April 10, the first day of pre-orders, with the Apple Watch averaging 30,000 orders per day since.

Daily Apple Watch order estimates in U.S. (first-day orders of nearly 1.5 million omitted)
As Quartz points out, the Apple Watch saw a notable rise in order interest on April 24, the day most initial Apple Watch pre-orders that weren’t high in demand, like the Leather Loop or Black Sport band, began arriving to customers. Social media posts and word of mouth that day no doubt helped Apple receieve a few extra orders, and it reaches back up to around 40,000 on a few days in April and May, but otherwise Apple’s new wearable has seen a steady decline in order numbers since its launch date, according to the e-commerce shopping firm.

Even with the steep decline following the start of pre-orders, Apple Watch sales are easily outpacing early sales of the iPod and iPhone, and slightly topping those of the iPad, although Apple’s continually increasing user base since the debut of those devices gives the company momentum for each subsequent product family launch.

Slice Intelligence’s Apple Watch update today comes a few weeks after providing a break down of initial pre-orders for the wearable, which pegged 62 percent of customers as having pre-ordered the Apple Watch Sport and an unexpected popularity of the Space Gray case and Black Sport band. As with that data, a few factors should be taken into account when looking at Slice Intelligence’s order estimates, including its data being limited to the United States and the relatively small pool of customer receipts examined.

Today’s report also falls in line with KGI Securities analyst Ming-Chi Kuo’s prediction of the Apple Watch order demand beginning to slow down following a high launch period. Although Apple has yet to announced any sales numbers for the Apple Watch and doesn’t plan to break the device out into its own reporting segment in financial results, the Apple Watch’s entry into the company’s upcoming brick-and-mortar retail locations in June could help boost the wearable’s sales figures.





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In just 24 hours, Apple Watch outsold all Android Wear devices ever

It’s too early to tell exactly how well the Apple Watch will do in the grand scheme of things, or even if it will ultimately win the wearable war. But one thing’s for sure, it’s off to a hell of…Read more ›



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