Apple has nearly $100 billion in cash on its books. It is also a source of constant nagging by Wall Street investors who want Apple to do something with it: a dividend, give it back to investors or something.
In order to address the cash balance issue, Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, are going to host a conference call to announce the outcome of the company’s discussions concerning its cash balance, the company announced Sunday. The call will be held on Monday at 6 a.m. PDT (9 a.m. EDT.)
During the Steve Jobs era, Wall Street’s demands fell on deaf ears. In a recent conference call, Cook’s position on cash balance wasn’t that extreme. As my colleague Erica Ogg pointed out, Cook and the board have been in discussions about the company’s cash position, which continues to rise. “We have more cash than we need to run the business on a daily basis,” he said during a Goldman Sachs investors’ conference last month.
I, for one, believe the company should just sit on the cash and not worry too much about Wall Street just yet. It is important that they use the cash to lock up supplies of components for its products. The cash cushion gives the company room to actively compete for talent as well as any future startups it might need to acquire to enhance its overall ambitions.