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In a world where Apple chooses to invest scarce cash in A or B, with B being low-margin, and then choosing B. Not in a world where Apple's cash isn't so scarce
by IkmoIkmo 8y ago
In a world where Apple chooses to invest scarce cash in A or B, with B being low-margin, and then choosing B.
Not in a world where Apple's cash isn't so scarce that it has to choose either, but can choose both.
The real question is, do investments in the car space get it a better return than whatever the return they had on their cash, which was likely quite small, too, and with no upside.
- deafcalculus 8y agoApple can always use that cash to buy back its stock. Spending it on Tesla has to get better returns than buying back itself for it to be worthwhile.