President Barack Obama’s plan to impose U.S. taxes on corporate America’s overseas profits threatens to open a big crater in the financial statements of technology companies.
While additional taxes are rarely popular, Obama’s decision to go after corporate earnings outside the United States is a particularly prickly subject for technology executives because the industry has been steadily boosting its overseas sales amid rising demand for its gadgetry and services.
Only a few days ago, eMarketer ran an article (Online Sales Up) based on a study that showed US online retail sales on average were up 11% in Q1 2009.
Looking forward, however, the projection for online sales in 2009 does not appear so rosy.
After years of unbroken growth, eMarketer forecasts that continued recessionary pressure will cause online sales to actually contract in 2009—by 0.4%.
Developers hoping to cash in on the enormous popularity of the iPhone have to hold their collective breaths every time they submit an app to Apple, hoping it will not get rejected for some unknown reason.
This may change with the release of the iPhone OS 3.0, which will include parental controls; one thing many rejected apps have in common is that they run up against Apple’s fairly puritanical decency standards (although apps that make farting noises or provide proxies for shaking babies apparently don’t).