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Summary:

Apple huge cash pile got bigger as of its last fiscal quarter, bringing its total liquid assets to around $65.8 billion. Market intelligence firm Asymco Tuesday provided some insight regarding what that number actually means in the context of Apple and its market position.

asymco-chart

Apple announced its cash stockpile had increased by another $6.1 billion (even after around $900 million for supplier prepayments and capital expenditures is taken out) as of the end of the company’s second fiscal quarter for 2011. That brings the company’s total for liquid assets, including cash and short- and long-term marketable securities, to around $65.8 billion. Market intelligence firm Asymco provided some insight Tuesday regarding what that number actually means in the context of Apple and its market position.

A $65.8 billion cash pool isn’t something that garners as much attention as new Macs, iPhones or iPads, but it’s one of Apple’s greatest strengths, and something none of its competitors can even approach. Here are some key takeaways from Asymco’s attempt to put things in perspective:

  • If Apple’s revenue streams stopped completely, current cash would keep operations going for more than seven years, or until mid-2018.
  • Apple’s cash pile represents about half of Google’s total enterprise value.
  • Cash-on-hand for Apple represents a greater worth than Nokia, RIM and Motorola Mobility’s market caps combined.
  • Apple’s single quarter cash growth was higher than the market cap of many companies, and just about matched Motorola Mobility’s with the $900,000 in pre-payments added back in to the total.
  • Apple has enough funds on hand to put the company’s CFO among the top 100 largest fund managers in the world, and above any single hedge fund manager.
I think the most important takeaway among those listed above is that Apple is unique among its competitors by ensuring it has time to recover in the case of any considerable missteps. A huge cash fund means that risks like the iPad, which no doubt was incredibly costly and time-consuming during the R&D phase, can be taken on without necessarily endangering the future of the company or Apple’s existing lines of business. After all, there’s nothing like a $65 billion safety net to encourage bold moves in product development and innovation.

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  1. Yeah, and there is nothing that suggests that there will be any kind of slowdown of cash-piling on Apples side. Thats just huge.

  2. With $65 billion in cash reserves, Apply has more than enough money to fund shift some of its production to the U.S. It’s going to be making iPads in Brazil to bypass that country’s heavy import duties. It can do something similar to help get our economy rolling again. Right now, Apple-Cupertino is a giant vacuum enriching a few people in Cupertino, while sucking billions of dollars out our economy and placing it in a country where citizens are denied even the basic freedoms.

    Keep in mind that Asian automakers and Mercedes are quite happy with the quality of work done in at their factories here. Domestic production gets around the currency exchange issues that can make foreign production complicated, as well as accusations of foreign workers being exploited and ill-treated.

    Here’s a question we need to ask ourselves. Why do our iPhones say, “Designed by Apple in California. Assembled in China.” Why shouldn’t they say, “Designed and manufactured by Apple in the U.S.A.”

    If Honda, Toyota, Mitsubishi, Mercedes and others are smart enough to make their products profitably here, can’t the management and design teams at Apple do the same?

    1. Hear hear. Totally agreed.

      1. Spread the wealth around I say. Help people in other countries to have the opportunities to prosper too. That will get people working, motivated and eventually positive changes will happen where people will be able to improve the country they live in. Enough money will find its way back to the US for you to worry about missing out, rest assured.

    2. “Here’s a question we need to ask ourselves. Why do our iPhones say, “Designed by Apple in California. Assembled in China.” Why shouldn’t they say, “Designed and manufactured by Apple in the U.S.A.”

      Because they would cost a lot more to produce. People already say they pay a ‘premium’ for Apple products.

  3. It’s incredible to think where apple was less than 10 years ago compared to now. You can only praise them for turning their fortunes (no pun intended) around so dramatically.

    One point on your article above.
    “…but it is one of Apple’s greatest strengths, and something that none of its competitors can even approach.” – I believe Microsoft has over $40b in cash and investments. I love all this positivity towards apple but it’s too easy to become blinkered and miss some facts about the competition with posts like this.

  4. Willy Pimentel Tuesday, April 26, 2011

    I really wished apple bought Avid and their Inews Division and control the tv area. While they are at it, get VIZ … Television changes to an apple world!!!!

  5. With this profits accumulated, it should be possible for apple to improve their supply chain. At the moment they squeeze the contractors and jump from one infringing company to the next to keep the cost at a minimum.

  6. What a fantastic story that all started with Steve Jobs return, a brilliant English designer and a music player called the iPod.

    1. indeed — a little thing called the iPod. :-)

  7. Apple’s cash and cash equivalents is 16B and its short-term investments is 13.2B. How does that add up to 65.8B?

    1. You forgot the long term securities dufus!

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