# What is Apple going to do with it's pile of money? What should they do?



## ehMax (Feb 17, 2000)

One thing that came out of Apple's quarterly results is that they now have, get this..

*$65.76 billion in cash*

:yikes: :greedy:  :yikes: :greedy:

That's a crazy amount of money. 










Apple doesn't pay a dividend, doesn't repurchase shares, and has made very few acquisitions. 

Every quarter, they are simply hoarding the cash away. 66 Billion dollars. 

What are they ever going to do with that cash? I know its prudent and fiscally responsible to keep a war chest for rainy days. They have played with their money a little bit apparently buying up about 3-4 Billion worth of components for their iPad.

But 66 Billion. 

What are they going to do with that money? What should they do with that money? What do you think?


----------



## MannyP Design (Jun 8, 2000)

Buy out the U.S. and rename it 1 infinite Country?


----------



## DempsyMac (May 24, 2007)

what is Samsung's manufacturing side of the company worth?


----------



## Guest (Apr 21, 2011)

I think it's all still a knee-jerk reaction to the fact that they came pretty close to bankruptcy at one point ... and they are going overboard on it now. In the same way that Steve Jobs wasn't willing to be "hired" back to the company so that he couldn't be fired again.

And what they should do with it is easy ... they should send a bunch to ME !! I've been advocating their hardware and software for years so I figure they at least owe me some commission hehe.


----------



## monokitty (Jan 26, 2002)

Rebuild Japan.


----------



## Joker Eh (Jan 22, 2008)

Build manufacturing plants and build all hardware in North America.


----------



## jeepguy (Apr 4, 2008)

buy RIM


----------



## ehMax (Feb 17, 2000)

Joker Eh said:


> Build manufacturing plants and build all hardware in North America.


I think that's a great idea actually. :clap:

Why can't we build nice things?


----------



## DempsyMac (May 24, 2007)

jeepguy said:


> buy RIM


WHY? (other then to help my CDN mutual funds go up)


----------



## imactheknife (Aug 7, 2003)

I really think they are going to really invest in Chip design (A5 etc and graphics) as this seems to be the future for their mobile devices.

I am sure they will purchase other companies or maybe buy Nortels patents?? They invested in Liquid metal technology and maybe something will come of that as well.


----------



## ehMax (Feb 17, 2000)

I think they should bake several thousand cream pies and hire hundreds of people to go to every journalist who ever called Apple "Beleaguered" in the 90's, and throw the pie in their face and laugh "Ha Ha" at them. 










Hire George St. Pierre to give John C. Dvorak a rear naked choke. 










Hire Hulk Hogan to give Michael Dell and huge wedgie yelling, "Watcha gonna do, when the big Apple comes calling on you!!!"










Yeah.... I probably shouldn't be in charge of lots of money.


----------



## Garry (Jan 27, 2002)

Joker Eh said:


> Build manufacturing plants and build all hardware in North America.


I agree with this.. but make it automated. I'm sure that with 60+ Billion they could invest in the technology to do this now.


----------



## Joker Eh (Jan 22, 2008)

Garry said:


> I agree with this.. but make it automated. I'm sure that with 60+ Billion they could invest in the technology to do this now.


Well I was thinking more of jobs in North America vs China.


----------



## jwootton (Dec 4, 2009)

They will continue to do what Apple has always done, make strategic purchases of smaller companies for their IP or other synergies. They will not make a large purchase, it is just not going to happen. Investing in better faster, smaller chip design is likely as well as investing in technologies for longer battery life. Most goals being long term(for a technology company anyway). I also expect to see more investment in large data storage facilities.


----------



## CubaMark (Feb 16, 2001)

*Apple Currency Conversion Chart*



> ...the US government no longer had enough currency to print the giant piles of cash-on-hand Apple has at their disposal. So, Apple simply called in their chips and, starting today, will be printing their own. Thus replacing the faces and common names we formerly called our currency.





> *$100 bill* – Is now to be commonly referred to as a _Steve_
> 
> *$50 bill *– To be commonly referred to as a _Cook_
> 
> ...


(From the great site: MinimalMac)


----------



## Tomac (Dec 31, 2002)

Think labour.

Provide additional $upport / benefits to Apple employees. 

Respect.


----------



## MacUnited (Nov 1, 2009)

give me one million!! they wont' even notice it!!


----------



## MacDoc (Nov 3, 2001)

Buy Adobe and simplify the product line.


----------



## fellfromtree (May 18, 2005)

Make a Windows PC that kicks all Windows PCs.


----------



## PosterBoy (Jan 22, 2002)

Bearing in mind of course that a lot off that horde is short term investments, not just a big ol' pile of cash, I think they should keep hoarding it. Or at least, I expect them to.


----------



## kkritsilas (Mar 1, 2010)

Starting up North American manufacturing again will probably make sense in the longer term. With some of the production delays seen at the various Chinese factories for the last few products (iPad, iPhone 4, and iPad2), having manufacturing facilities in more places around (North America, Western Europe, Eastern Europe, as well as the Far East) the world may make some sense, allowing for faster production ramp ups, and perhaps cutting some transport time and cost out. This would have to be balanced against higher labour rates in North America, and Western Europe. There may be some other cost savings in lowered customs fees and brokerage charges as well. They may not be Apple factories, but may be Apple working with contract assembly houses within those regions.

Short term, I think Apple will continue investing in chip design as it is seen as something that will differentiate Apple products from the rest of the products in the market. As well, a much needed and welcome emphasis on security and stability in software (both iOs and OSX), with perhaps the move to a digital locker type service also becoming a significant expense for the next few quarters (to also include purchased movies at some point). The rumored free version of Mobile Me will also require some investment, if it proves to be true. I can also see some investment in pushing certain technologies along, as long as it works to differentiate Apple's products from the rest (i.e. investing in a facility/technology to produce a Retina display for a future version of the iPad, with some period of exclusivity).

Kostas


----------



## JAMG (Apr 1, 2003)

I think Steve has constructed a large vault like building with a large Apple on it and spends his day swimming in $1 bills.
The medical leave is a cover story.


----------



## ehMax (Feb 17, 2000)

MacDoc said:


> Buy Adobe and simplify the product line.


+ 100

One box, Creative Studio, that has the whole shebang, for $999. (Like Final Cut Studio)

Upgrades for $299. 

They's sell like crazy, and practically every company would upgrade to every new version that came out.


----------



## Macfury (Feb 3, 2006)

I agree that moving some aspect of manufacturing permanently to North America would be a way of differentiating themselves from all of the companies dependent on cheap foreign manufacturing. It would be a public relations coup.


----------



## Adrian. (Nov 28, 2007)

I agree with the idea that Apple plans on increasing its NA production capacity.

I think having that much cash has two benefits:

1. It's frees them from dependency on hedge funds and investors. Apple could perform a massive buy back of stock from investors. That much liquid capital gives them so much freedom. 

2. Apple is looking to compete with Google which has enormous cash reserves. Google has positioned themselves very similarly to the way that Apple would like to. A very small amount of Googles shares are publicly traded. Financial volatility probably has a lot to do with this, but I think it has more to do with the ability to make quick buy-ups of companies without having to negotiate with banks and other financing companies.

Google has really proven the immense amount of money there is to be made in non-material (invisible) goods. Apple wants in on this. That is going to require mega-money. 

We live in interesting times.


----------



## johnb1 (Aug 6, 2006)

maybe make an addon PCI-E audio card. Ever since the days of the Revolution or even
the Firewave, things haven't been the same......

other than that....maybe buy out Dell...or part of Microsoft....why? just because they can/


JB


----------



## hayesk (Mar 5, 2000)

ehMax said:


> I think that's a great idea actually. :clap:
> 
> Why can't we build nice things?


Because we form unions that expect low-skilled labour to be paid as much as jobs that require specialized skills or several years of university education.

Cynical, I know, but probably not far from the truth.


----------



## Bjornbro (Feb 19, 2000)

Apple will continue to hoard more and more money so that they can _truly_ build the mothership and colonize a new planet with _i_Pod people. We've all seen the Axiom haven't we?


----------



## LRD (Jan 1, 2009)

MacDoc said:


> Buy Adobe and simplify the product line.


Buy Adobe and put Flash out of it's misery.


----------



## Digikid (Jun 22, 2010)

Donate it to a WORTHY cause. Cancer research, Heart and Stroke Foundation....IMPORTANT stuff like that.


----------



## Ottawaman (Jan 16, 2005)

Put it all on red 7.


----------



## JAMG (Apr 1, 2003)

Seriously...


I think it is just so they never have to hear the words "Hostile Takeover"


----------



## The Doug (Jun 14, 2003)

They should buy ehMac. It's gotta be worth at least $5 billion.


----------



## hayesk (Mar 5, 2000)

LRD said:


> Buy Adobe and put Flash out of it's misery.


I'd be happy if they just fixed it.


----------



## Tech Elementz (Mar 15, 2011)

Buy Microsoft. OMG. I can't believe I just suggested it.


----------



## WCraig (Jul 28, 2004)

I think they should buy Nortel's patent pool--for, say, $100 billion! All of us that got stuck holding Nortel shares would be happy!!


----------



## monokitty (Jan 26, 2002)

Well... Canada's deficit is about half of Apple's available cash, so... bailout Canada?


----------



## imactheknife (Aug 7, 2003)

Lars said:


> Well... Canada's deficit is about half of Apple's available cash, so... bailout Canada?


I'd even vote for Jobs as Canada's next PM!!


----------



## ehMax (Feb 17, 2000)

Interesting article on Apple's "Cash Pile"...

*If Cash is King, Apple’s is an Emperor*



> Apple’s cash for short-term and long-term marketable securities totaled $65.8 billion at the end of the March quarter. Cash increased by $6.1 billion.
> 
> The increase in cash is net of approximately $900 million for prepayments and capital expenditures related to the strategic supply agreements that Apple announced last quarter.
> 
> The following chart shows the historic cash, short-term and long-term liquid assets Apple holds.












Fascinating stats:


The funds are big enough to place Apple’s CFO office in the top 100 largest fund managers in the world and larger than any hedge fund manager.
Cash growth in one quarter was higher than the market cap of many companies. For example, if pre-payments were added back, the cash increased by about the market cap of Motorola Mobility.
*[*]Current cash is worth more than Nokia, RIM and Motorola Mobility’s market caps, put together.*
Apple’s cash is worth half of Google’s enterprise value.
About two years ago, in January 2009 the stock traded at a price of $78 with at least one analyst placing a target of $70 on the stock. Today Apple’s cash is worth $67/share.
If you owned $100,000 of Apple stock, $19,000 of that would be cash and only about $80,000 would be “at risk” capital.
*[*]If Apple had no revenues, the current cash would sustain operations (SG&A and R&D) for over 7 years or until the middle of 2018.*

*Full story...*


----------



## JGZ1 (Jan 19, 2005)

Apple will continue to:
1) buy components in the billion $ volumes to keep a manufacturing/cost edge
2) continue to think of new things in the market. What new area will they launch next? TV?
3) Hire great people at high salaries.
4) Buy small companies that do something that Apple needs

What they might do:
1) Build/design their won processors. Already doing it for iPad. How about for Mac? They have moved from 68000 to PowerPC to Intel. Someone is working on this in Cupertino.

What they won't do:
1) Buy a large company. Apple has a small product portfolio. Steve says it is important to say no. Just build the excellent stuff and forget the crap.
2) Pay dividends.
3) Build their own manufacturing. This is different from helping others to get going on manufacturing.
4) Philanthropy. Apple is too busy giving great products to the world. That is their philanthropy.


----------



## Dr T (May 16, 2009)

First off, they could spend a few loonies, or twoonies, or millions to teach you to spell your favourite language.


----------

