According to an article recently published on CNBC, some of Apple Inc.’s (NASDAQ:AAPL) old iPods are now considered as “collector’s items”, and are selling at eye watering prices on e-commerce sites such as eBay Inc (NASDAQ:EBAY). The source gave more details, reading “On the low end, a factory-sealed third-generation iPod shuffle can draw nearly $1,000 in online auctions, while a second-generation, still-boxed iPod classic with a moving wheel lists for almost $20,000.”
When U.S. tech company released its 2nd generation iPod classic on 17/07/2002, it had a price of $399 (for the 10 GB version) or $499 (for the 20 GB version.) As of June 2016, the same Apple iPod is being sold online at approximately 50 times what it costed.
Apple Inc. Products Are Challenging Conventional “Collectibles”
Typically, goods such as fine wines, limited edition games or toys etc are considered collectibles. Apple Inc.’s (NASDAQ:AAPL) consumer electronics are becoming increasingly lucrative collectible items, and consumers may start purchasing Apple’s goods with no intention of using or unboxing them. They are only buying the product with the hope of selling it in the future at a much greater price than it’s currently worth.
Tax Scandal – Apple Inc. Only Paid Around $17.5 Million in Corporation Tax in 2015
It has been widely reported that Apple only paid £12.9 million (around $17.5 million) in corporation tax for its UK operations in 2015. By having their headquarters in Ireland, Apple Inc. is able to significantly reduce its corporation tax bill. Other U.S. tech firms, such as Alphabet Inc (NASDAQ:GOOGL), are using this technique. Several weeks ago, a Google facility was raided in France as part of an investigation into the firm’s corporation tax arrangements. Documents & hard drives were seized in the raid.
Back in April 2016, the CEO of Apple, Tim Cook, denied any wrongdoing. A company spokesperson said “Apple is the largest taxpayer in the world and we pay all that we owe according to the law. We have a long history in the UK and are proud of the significant contributions we’ve made over the past 36 years.”
The firm generates revenue in a number of ways. For example, they design, manufacture & retail consumer electronics e.g. iPhone 6. Apple’s iPhones have proven to be extremely popular, & they have developed an extremely loyal fan base, who immediately ditch their old iPhone as soon as the new one goes on sale. A share in Apple Inc. (NASDAQ:AAPL) was down by 2.81% on the 24/06/2016, trading at $93.40, giving the tech giant a market capitalization of $514.54 billion. The stock is currently at a 1-month low.