3 Tech Titans Making Noise: Apple May Cut 5C Production, Google’s Tax Tactic, Amazon Acquires TenMarks
Apple Inc. (NASDAQ:AAPL): Apple has apparently cut its iPhone 5C production by half, according to a report from MacRumors. This implies a quarterly output of around 13.7 million units (300,000 units to 150,000 units per day); the cuts are reportedly due to Chinese grey market price drops, as the units are smuggled in illegally to help avoid the atmospheric asking price of about $725 that the Apple phone commands in China.
Google Inc. (NASDAQ:GOOG): Search engine giant Google has moved an estimated 8.8 billion euros’ worth of cash to Bermuda in order to take advantage of the country’s lenient tax codes, which bring Google’s international tax rates to 5 percent, less than half the tax that’s charged in low-tax Ireland, where Google records most of its overseas sales. The Financial Times says Google has also been targeted by its use of the Netherlands as a conduit for its earnings to avoid withholding taxes.
Amazon.com Inc. (NASDAQ:AMZN): Amazon will be purchasing TenMarks, an online math tutoring and course platform for K-12 students. Though the terms remain undisclosed, Amazon says that TenMarks’s programs have been “used by tens of thousands of schools,” and it is intending to “develop rich educational content and applications, across multiple platforms.” Seeking Alpha observes that the platform could end up being integrated into Amazon’s Kindle’s textbook sales and rentals.