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they're going to make the chips, and build a cloud with them and then they're going to sell services with that cloud directly to the consumer. they're going to
by qbxk 2y ago
they're going to make the chips, and build a cloud with them and then they're going to sell services with that cloud directly to the consumer.
they're going to own the entire stack, from fab to finger
- verdverm 2y agoApple doesn't own a fab currently afaik, that would be new as well
- runjake 2y agoApple is in no position to own fab and besides, we’d hear about it many months prior. They aren’t going to be able to keep that secret. My guess is that they’d use TSMC or perhaps even Intel, for fab. But probably TSMC.
- HeatrayEnjoyer 2y agoApple has more cash on hand than nearly every private sector entity on Earth. They could build a fab with zero investment or credit activity.
- verdverm 2y agoYet they are choosing to do a $110B stock buyback, which apparently exceeds their cash on hand in the books > Since Apple’s $110 billion stock buyback exceeds its balance sheet cash, how will the iPhone maker pay for the share buyback? https://www.forbes.com/sites/petercohan/2024/05/05/warren-buffett-dumps-13-of-apple-stake-before-110-billion-buyback/?sh=c68fd0e3c509#:~:text=Since%20Apple%E2%80%99s%20%24110%20billion%20stock%20buyback%20exceeds%20its%20balance%20sheet%20cash%2C%20how%20will%20the%20iPhone%20maker%20pay%20for%20the%20share%20buyback%3F https://www.forbes.com/sites/petercohan/2024/05/05/warren-bu...
- dagmx 2y agoBuybacks happen over a period. Cash on hand isn’t the only factor, cash flow in is a large one. Apple stated several years ago that they’re aiming to be cash neutral https://www.fool.com/investing/2018/02/02/understanding-apples-new-net-cash-neutral-goal.aspx https://www.fool.com/investing/2018/02/02/understanding-appl... In the earnings call last week they stated they’re still a while away from that goal. These buybacks are part of the net cash neutral strategy. Other forms they could take are upping R&D (but they already seem to be pretty high), or increasing employee wages (that would be much appreciated I’m sure) or reducing product margins (also probably appreciated by a different group). Though the latter two are harder to back out of if things ever go south.
- nxobject 2y agoCan you ELI5 for someone who doesn't know corporate finance why constant cash surpluses would be unfavorable for them?
- dagmx 2y agoHonestly, I do not understand it myself either. I just understand the mechanisms behind it but I do not understand why one would logically want less money.
- positr0n 2y agoIf you owned a business that had a bunch of cash sitting around with no useful growth opportunities to invest it in you wouldn't keep it in your business's bank account, you'd pay yourself and spend the money on a vacation or invest it elsewhere. Same with a giant corporation. Its shareholders want to be invested in a business. Owning part of a business that is 10% just a giant cash pile isn't necessarily appealing. The corporation should return the cash to its investors so they can decide what they want to do with it.
- dagmx 2y agoThat’s fair. I’d probably invest it in my employees though personally rather than return to investors, but I follow.
- runjake 2y agoEven if they could, they haven’t. And if they did, it would take months/years and we would hear about it.
- oldpersonintx 2y ago[dead]
- nxobject 2y agoRight after buying Disney, too.
- HeatrayEnjoyer 2y agoBuying Disney?
- nxobject 2y agoNo doubt Apple can negotiate some form of super-exclusivity deal with a fab, in the same way that their license from ARM is probably more permissive than any other of their partners. (I wouldn't put it past them to go with Intel – after all, during the PPC era, it also would've been unexpected to go with Intel!)
- MBCook 2y agoThey’ve gotten exclusive access to nodes by buying up the full capacity before.