Apple sits on $65.8B pile of cash

I've heard speculation about a bid for Facebook, but that sounds crazy to me. Akamai and other multi-billion dollar targets are more realistic though. There was an interesting article about this in the times like yesterday.

Nowadays, it seems all companies are holding their cash overseas.

I wouldn't say that cash inspires confidence; it means they have no clue what to invest in. They are getting literally 50% of revenue from the iPhone, and I am guessing they are not sure what they can diversify into.

Do they become a software company? Start making tv's, game consoles, etc like Sony? Or do they start vertically integrating their supply chain? None are especially compelling, certainly yielding lower returns than the frothy equity markets we are seeing.

wtf? TV's, consoles, toasters. dildo's are hardware. Not software. Apple is both a hardware and software company. Although the software is used to power proprietary hardware.

Why would they start manufacturing TV's? It's a low margin business which has become increasingly cut throat the last few years. Hence, you can watch titties in HD on a 50" screen for under 1k.

Netflix would be a good buy if possible. How would they acquire a majority share in Facebook? On the private market? May be. Facebook's not a done deal yet anyway. Would still be too big a gamble this early on to acquire majority share when they could theoretically crash and burn in 3-5.

You know what they may be? Smart. Maybe, kind of? The current financial situation is unsustainable (globally really) and when SHTF , what happens? Things become cheap. Real cheap. Cheaper than they should be. Then you could gobble them up and become master of the universe. Why buy overpriced? What's the hurry?

I've been following their finances since I was in 6th grade. If I don't get the bank of my choice I'm gonna work for Apple

Screw buying Facebook. Apple could BUILD a better facebook for a couple billion. I would join in a second. Integrate it with the iphone, sync it with gamecenter so you can play games with your friends over the iphone. Apple has such a loyal user base and perception of high quality that they could knock it out of the park.

I don't understand why they don't do this. What's Steve Jobs email again?

I bet they are planning to do this (I can only hope, it's so logical). Facebook can (and should) be beaten.

NETFLIX is overrated, would be a terrible buy. siting on that much cash is a worry. never really liked apple tbh.

meph

International PympI've heard speculation about a bid for Facebook, but that sounds crazy to me. Akamai and other multi-billion dollar targets are more realistic though. There was an interesting article about this in the times like yesterday.

The idea of Apple buying Netflix is pretty interesting as well...

Yea I really can't see Facebook selling before their IPO. Plus I doubt Apple would be able to pull it off because even with Facebook's $50B valuation its trading even higher on the secondary markets at around like $70B.

The idea of Apple buying Netflix doesn't seem like the best acquisition in my opinion. It would make more sense and be cheaper for them to compete with Netfilx than to buy them out - given the legal/technical architecture Apple has put in place to support iTunes and the quality of Apple's brand name. I like Netflix but they might be a little overrated. Look how easily Amazon, Hulu, and others have been able to launch similar services and compete with them.

If I was an apple shareholder, I would be pissed if they started making any of the acquisitions mentioned. Unless there are strong synergies (which I do not see), an acquisition at the valuations of the mentioned companies would likely only destroy shareholder value. I'd much rather see an a dividend or share repurchase.

If I owned apple (which I don't), I would own it because it has generated huge returns on invested capital. If it can't produce the same returns with its cash balance, then please return it to shareholders.

Hey jackass, you're not some genius for realizing this... and it certainly isn't anything new, you were so ignorant as to not realize the absurd amount of cash until the shareholders got their act together and filed a lawsuit.

But thanks this post was totally worthwhile.

I bet they wait until a Republican takes office and cuts corporate tax rates before they repatriate that cash and buying back shares / paying dividends, etc.

Have you seen the iPad 2 show? Jobs was banging on about how epic, brand new and revolutionary the ipad2 is, although its almost the same as ipad. 2 colours, wow impressive.

Sure they are making great products, but this obsession with apple isnt going to last forever... the amount of energy people spend talking about apple is to high to be sustainable, even if they continue launching new products which will get less awesome with time.

This load of cash should be spent on diversifying their business, maybe have some revenue come from something thats not an apple product (by that i mean something that would bring revenue even if its not carrying the apple brand)

I think they are much more conscious about their cash position than posters on WSO give them credit for.
They hold the cards.
They've been successful.
They will continue to develop new products that tackle a different part of the electronics market. That being said, I think Akamai could be bought, or they will build their own akamai.

How about use that money to buy commodities, jack up the commodities prices,and sell them for more dough?