The recent change in the tax code has created quite a stir among tech giants. Apple (Nasdaq: AAPL) is setting a phenomenal example by announcing plans to bring its overseas cash pile back into the country. That should spell good news for investment in the US.

Apple’s Financials

Apple’s first quarter revenues grew 12.7% over the year to $88.3 billion, ahead of the Street’s forecast of $87.3 billion. Profit was $20.1 billion or $3.89 per share, up 16% over the year. The market was looking for an EPS of $3.86 for the quarter.

By segment, Apple’s iPhone revenues grew 13% over the year to $61.6 billion despite a decline of 1% in iPhone sales. Overall, the company sold 77.32 million iPhones compared with the market forecast of 80 million units. iPad sales continued to grow with revenues recording a 6% increase to $5.86 billion. The number of iPads sold increased 1% to 13.2 million units. Mac revenues fell 5% to $6.9 billion with units sold reducing 5% to 5.1 million. Its Services segment grew 18% to $8.5 billion and revenues from other products grew 36% to $5.5 billion.

By region, Apple’s revenues from the Americas grew 10% over the year to $35.2 billion and sales from Europe grew 14% to $21.1 billion. Revenues from the Greater China region continued to grow and reported an 11% improvement to $18 billion. Revenues from Japan also increased this quarter by 26% to $7.24 billion. Revenues from the rest of Asia Pacific improved 17% to $6.9 billion.

Apple ended the year with revenues growing 6% over the year to $229.23 billion and EPS growing 11% to $9.27.

For the current quarter, Apple forecast revenues of $60-$62 billion, and gross profit margin of 38% to 38.5%. The market was looking for revenues of $65.41 billion and an EPS of $2.83.

The recent tax code change has had a big impact on the industry. The tax rates for corporates were reduced from 35% to 21% in the US. But some of those benefits are offset with the new repatriation tax. Prior to the current ruling, companies needed to pay 35% to repatriate foreign profits. According to the new rule, they will not have to pay any taxes to repatriate future foreign profits, but a 15.5% tax to repatriate overseas cash stash.