How Does Apple's EU Tax Bill Affect Its Cash Pile?

Brian White, a senior analyst, discusses Apple's stock potential and tax issues. Despite a $14.5 billion tax bill, Apple's strong cash flow makes it manageable. The focus shifts to product updates, with expectations for new iPhones, iPads, and Macs. Challenges include declining iPad and Mac sales, but the iPhone remains a key revenue driver. The market outlook is optimistic, with potential growth from the iPhone 7 and overcoming past sales comparisons.

What is the significance of Apple's $14.5 billion tax bill in relation to its cash reserves?

• It will cause Apple's stock price to plummet.

• It will deplete Apple's cash reserves completely.

• It is a small amount compared to Apple's cash reserves.

• It is a major financial burden for Apple.

What is the main driver of Apple's revenue and profits?

• Apple Watch

• iPhone

• Mac

• iPad

What challenge is Apple facing with its iPad and Mac product lines?

• Excessive competition

• Lack of consumer interest

• Increasing production costs

• Declining unit sales

How does the introduction of the iPhone 7 impact Apple's growth prospects?

• It will have no significant impact on Apple's growth.

• It is expected to decrease Apple's market share.

• It is anticipated to return the iPhone franchise to growth.

• It will likely lead to a decline in revenue.

What has caused negative perceptions about Apple's performance?

• Poor product quality

• Decreasing consumer interest

• Unfavorable comparisons with past performance

• Lack of innovation