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How Apple Uses Big Money To Get Its Way

It’s no secret that when it comes to money and justice, money always seems to have power over justice with many big people getting lawsuits and cases to go their way. Well, it is not a new thing as it has always been so since time immemorial. People in power would get their way no matter the felony so it should not come as a surprise when big companies and prominent people in power today use big money to get their way. There are many businesses which do so, and one such company is Apple. The multi-billion corporation has had its share of successes, it has given back to the community in many significant ways, but also it has used its money to help it get access to opportunities. Below are few times when Apple spent or is spending money to gets its way.

Apple’s tax evasion tactics through use of money

For many years now, Apple has been evading taxes through a series of tactics. One of the main ones is by having fantasy corporations in the Ireland. Two of its companies which are located in the country have Apple’s business paying the Irish Taxman and Cupertino a lot of money so as to escape the economic reality through arrangements between these two bodies. Thanks to that pact, Apple has been able to evade paying a huge amount of tax, for instance back in 2014, it earned a profit of about one million Euros but only paid fifty Euros as a tax which is extremely low considering the massive amount of profits which it gained that year.

According to a recent investigation by the EU, the company has received illegal tax benefits of about thirteen billion Euros from the country. Obviously, the individuals in the arrangement are yet to be known, but it’s apparent that was not for free. Apple obviously spent some money to get away with their profits through the tax evasion. Also, the company evades taxes by borrowing money from the government. For instance, according to unknown sources, Apple had about $145 billion in cash as profits, but it borrowed an estimated amount of about seventeen billion dollars from the government which is arguably the largest bond to be offered to any corporation.

Through such strategies, it can use increase its stock something that attracts, even more, investors hence creating more profits for Apple. In return, it avoids buying shares which would mean more taxes to pay. Although there have been many other prominent companies doing so such as Star Bucks, Apple seems to be doing so quite well.

Apple’s Lobby against right to repair legislation

As we advance more in the high tech world, things tend to be more flexible as different businesses make ways for their clients to be comfortable in using their goods. However, not everything has been made flexible. For instance, when it comes to matters repair, most businesses require their clients to return the damaged goods to them instead of repairing the goods for themselves. That is why recently there was a suggested fair repair act bill which when passed it will allow customers to repair their own electronic devices.

The legislation has faced mixed reactions with most citizens supporting it but many businesses against it. At the top of the list of the lobbying companies is Apple. The company is working so hard to prevent the bill from becoming law and has even spent approximately over three hundred thousand dollars to get other lobbyists to promote that. The company even introduced a bug known as iBrick which creates an error on the operating system of an iPhone user who tries to repair the phone themselves.

It locks anyone who attempts a third party repair on any of Apple’s products. Though there have been enormous public outcries, Apple claims that this is a security measure and that is just one example of how the company uses its massive amount of money to get many things and policies to go its way. If it succeeds in getting more businesses to support it, then chances are that the bill will not be passed. It will be able to achieve that by using more money to strengthen its mission and support from other lobbyists.

Capital investment

It is amazing how Apple has been spending so much money on capital investment, something that people don’t know about. The company uses approximately $21.1 billion on capital investment, which is in other words used in buying manufacturing machinery and equipment. The company is concerned with customers’ interest at heart, thus invest a lot on capital investment to make something that attracts many people, such as iPhones.

Supply chain

Apple has been spending a lot of money on the supply chain that one can imagine. In 2013 for instance, Apple’s chief financial officer stated that the company uses $1 billion annually in retail stores. This money is spent on buying equipment that the company will own in order to put in the facilities of their partners. This makes the company to supply all its products to their customers with ease, thus making their products available to many people. The objective of investing massively in the supply chain is to ensure that they can deliver any amount of units customers request for.

Building an image

The fact that Apple is one of the wealthiest companies in the world is not in vain. It’s a well-known company across the world, thanks to an exclusive image building. The company spends massively on advertisement to ensure that they create awareness of who they are, what they offer, and why consumers should buy their products. A 2011 data shows that Apple used $933 million in the advertisement, $691 million in 2010, and $501 million in 2009. Since 2007, the company has used $647 million in advertising iPhone, and $457 million advertising iPad. This shows that the company uses the money exclusively on advertisement to reach out to the customers, thus making even more money.

Garrett Parker

Written by Garrett Parker

Garrett by trade is a personal finance freelance writer and journalist. With over 10 years experience he's covered businesses, CEOs, and investments. However he does like to take on other topics involving some of his personal interests like automobiles, future technologies, and anything else that could change the world.

Read more posts by Garrett Parker

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