Comments on: Apple’s Got a War Chest of Cash

By: Daily Apple: Macworld Lives, Kidproofing the iPhone, Glass Apples | TheAppleBlog

Thu, 08 Jan 2009 05:44:25 +0000

[...] Apple of Glass – This article makes the interesting claim that despite how sound they may be financially, Apple is in fact America’s most fragile company. Owing, of course, to the way the stocks dip [...]

By: AppleFreak

AppleFreak — Sat, 03 Jan 2009 05:09:09 +0000

What about the makers of the Flip? Same philosophy of simplicity, growing domination of its market, strong company, plays into Apple’s media portfolio, etc.

By: reinharden

reinharden — Fri, 02 Jan 2009 21:57:30 +0000

Matthew Murray said:
“Institutional investors would rather re-allocate that cash themselves”

Considering that in the most recently reported quarter Apple had sequentially increased mark-to-market losses of less than $100 million on a $24+ billion portfolio and that in the same timeframe almost all of my mutual funds were down 20% to 30% each, I think the institutional investors might be better served leaving their money with Apple’s treasury department. ;-)

reinharden

By: Matthew Murray

Matthew Murray — Fri, 02 Jan 2009 18:11:30 +0000

If AAPL isn’t going to do something with the cash, they really should either buy back shares our do a dividend. Institutional investors would rather re-allocate that cash themselves then have it earn minimal returns through AAPL’s treasury department.

By: 2009: A Web Odyssey « dot slash bang

2009: A Web Odyssey « dot slash bang — Fri, 02 Jan 2009 06:46:00 +0000

[...] If not physically, then at least as CEO. Steve has done wonders at Apple — he single-handedly saved Apple from asphyxiating a la debt in the early 90s and turned the company into a turn-of-the-millennium icon. In 2050 we will look [...]

By: Kiki's Friend

Kiki's Friend — Wed, 31 Dec 2008 04:03:26 +0000

From http://www.macsimumnews.com/index.php/archive/donovans_view_lots_of_pennies_earned
“Instead, the loss was measured by Apple at $117 million for the $24 billion portfolio and that level of loss can be viewed as a very good result in such awful market conditions and an achievement by Chief Financial Officer Peter Oppenheimer and the treasury team at Apple. Unfortunately, it has largely gone without notice or comment in reports.”

By: Todd Baur

Todd Baur — Tue, 30 Dec 2008 16:45:26 +0000

Frankly I hope they hold onto their coffers for the next year at least. Who knows what is going to happen with a new president taking over, a very uncertain market, and weaker than expected holiday retail season. If they are going to spend anything substantial, let’s see some more investments into Mobile Me and multitouch devices!

By: luis

luis — Tue, 30 Dec 2008 14:58:02 +0000

@Chano….

why is everyone concerned about how apple will spend their cash?

I think that if Apple continues to sit on a pile of cash and does nothing else, the returns to their shareholders will eventually be at risk. Unless there are strategic acquisitions to made, my bet would be that the best choice is to to buy back stock to ensure returns to shareholders.

By: chicha

chicha — Tue, 30 Dec 2008 14:46:16 +0000

What about buying RIM?

By: What To Read This Morning

What To Read This Morning — Tue, 30 Dec 2008 13:54:11 +0000

[...] of (book) reading. [Mssv] Hotels and conference centers want more bandwidth. [The New York Times] What is Apple going to do with all its cash? [TheAppleBlog] Tesla Backpedals on Model S [Earth2Tech] Tesla’s rough road ahead [Jeff Nolan] [...]

By: chano

chano — Tue, 30 Dec 2008 13:44:19 +0000

Surely you mean cash flow v current liabilities (not current debt, of which there is none – as in ‘Did I hear that Apple is debt-free?’. If so then its OCF ratio would be correct, measured against short-term (current) liabilities (e.g. owed to suppliers), rather than debt, which would imply borrowings, of which there are none.
Secondly, why does everyone get their shorts in a twist about how Apple will choose to spend its cash? Do you stay up nights vexed over the same issue about IBM or HP etc? This is a great time to be in cash. Cash is choice. Cash is safety. Cash is power. Cash is strength. Period. Why the rush to reduce choice, safety, power and strength in these dark times? Spend your own money whydontcha?
Thirdly, does Apple have factories, as you suggest. I thought they divested themselves of manufacturing activity shortly after COO Tim Cook arrived in the late 90s. You may want to check your facts on this.

By: reinharden

reinharden — Tue, 30 Dec 2008 05:21:34 +0000

Apple is also in the process of building a second campus in Cupertino. That’s reputedly going to take nearly a half billion by itself…

reinharden

By: d

Mon, 29 Dec 2008 23:50:13 +0000

Adobe.

By: Ernie

Ernie — Mon, 29 Dec 2008 23:00:56 +0000

I think Apple should buy up small worthy companies like they’ve been doing. Companies like Emagic that was later used to develop Logic Pro and Garage Band, or Semi P.A which would mean in house processors for iPods/Phones. These small companies have the technology that Apple needs and they can easily develop on the platform that the companies have founded.

Just a question though, do you think Apple would have this much money if they lowered their profit margins? I frankly don’t mind paying extra for Apple if it means including the small details – like amazing packaging, Apple stickers, new Apple smell. You’re not buying a computer, you’re buying a work of art.

By: Daisy

Daisy — Mon, 29 Dec 2008 22:28:38 +0000

I don’t think it’d make much sense to buy AMD. Even if using Intel Processor’s didn’t offer significant benefits over AMD’s offerings to begin with, they’ve only been using Intel for just shy of four years. Can’t see them switching again, even if the switch from one x86 flavor to another wouldn’t be quite the jump PPC to Intel was.

By: LongTermGuy

LongTermGuy — Mon, 29 Dec 2008 21:49:01 +0000

One thing they should do with the cash is buy ALL of AMD. Lock, stock & barrel so to say.