Lost in the collective freak-out over Apple's quarterly results this morning is the fact that the tech giant's cash stash is now above $US200 billion ($270 billion). And some of that is thought to be invested in Australian assets. How much? We don't know for sure.

Wall Street wasn't particularly thrilled with Apple's quarterly results on Wednesday morning. Shares dived by nearly 9 per cent - losing around $US62 billion dollars from its market value in a matter of minutes - after sales of iPhones underwhelmed and the impact of the much-heralded new Apple Watchfailed to move the needle. Apple is still growing (revenue was up 45 per cent, year on year) at rates most companies would die for, but investors are incredibly fickle beasts when it comes to results from the world's biggest company. 

The tech colossus added another US$9 billion to its vast position in cash and short-term investments, bringing it to $203 billion - more than the foreign reserves of countries like Germany, the UK, France, Canada and yes, Australia. 

Since Australia has one of the highest iPhone penetration rates in the world, it's reasonable to assume it generated some of that money in the last quarter (and all those quarters before) by selling devices on these shores. 

Yet, as reporting by the likes of The Australian Financial Review's Neil Chenowethhas shown, Apple doesn't pay much tax on its sales here, using notoriously complex schemes to shifts its profits to lower taxing jurisdictions. Apple doesn't repatriate profits generated outside the US into its home country due to steep taxes, but its cash is managed by a secretive offshoot in the Nevada desert called Braeburn Capital. It's not unreasonable to think Braeburn has invested some of that cash into Australian government debt (which carries a triple A rating and offers higher interest rates than other countries do). The company didn't immediately respond to our enquiries on this issue. 

Apple also quite possibly owns debt issued by Australian banks. A recent report by Bloomberg said representatives from all of Australia's big four banks, heavily reliant on overseas funding to write loans domestically, had sent representatives to visit Braeburn. 

If so, this would mean Australians aren't just buying iPhones and other devices, they're also effectively paying Apple interest. In return we get...great products. It's pretty clear who's getting the best out of this relationship, and it's not Australia.

Not that this is going to change anything when it comes to Apple's products, of course.  They're so incredibly good, it's practically a given that Australians will continue to feverishly buy them. 

David Fuller's view

This five-year weekly chart of Apple shows trading during Wall Street’s official market open hours, as the results were reported after Tuesday’s close.  However, I can tell you that iconic Apple is trading over $10 lower, uncomfortably close to retesting prior support near $120.

This will not help stock market confidence, at a time of seasonable underperformance and when Wall Street has just started to correct its short-term overbought condition. 

Re the Financial Review’s penultimate paragraph above, Australia is benefitting from Apple’s investments in its government bonds, which help to keep interest rates a little lower than they would otherwise be.  Similarly, Australia’s big four banks appear to be benefitting from Apple’s cash (third paragraph from the bottom above).  Those benefits must at least partially offset the sales tax issue.