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One interesting quote from the article. Apple shares are currently worth $458.70. Apple has cash reserves which are equivalent to $145/share. I realised Apple

One interesting quote from the article. Apple shares are currently worth $458.70. Apple has cash reserves which are equivalent to $145/share. I realised Apple had a lot of cache, but that really does seem to be getting to ridiculous proportions, effectively 1/3 of the value of the shares is a pile of cash which it seems Apple continues to sit on, doing nothing useful with, or having no good plans for (of course, who knows what is going on behind closed doors).

pothibo 14y ago
You are assuming that spending money is always a better solution than not spending it. I think you are misled. The fact they have 100 billions in cash and not willing to jeopardize their culture and focus is a proof of their dedication to do what's best for the company.
- CJefferson 14y ago
  I'm not saying spending money is always better than spending it, but there is a balance. At this point 'Apple' by itself is one of the world's biggest hedge funds. Apple is not just sitting on cash, it is doing it's own investment. If the owners of Apple think they can do a better job with that giant pile of money, then they are quite within their rights to ask to be given at least some of it. They can still leave Apple with a bigger reserve than any other tech company around.
r00fus 14y ago
All I have to say is - fuck Wall St. Apple's cash generates power and leverage that's simply not quantiyable in quarterly statements. Apple has already instituted dividends as well as a one-time payout to their investors. And having around $100B means that if they lay down $20B for some super strategic shift, it doesn't require debt to be serviced. Wall Street wants all companies beholden to the quarterly cycle - and if that company has to kill it's future to make the quarter, then so be it - all the better for those who make money on both sides of the trade. That's bad for the company and bad for customers.... all so the hedge fund manager can make an extra bonus by killing jobs and US competitiveness.
- hef19898 14y ago
  That's why wall street doesn't like it. Apples has the benfit of being public without relying on wall street for its financial future. I guess hedgefonds and banks are less than happy with having little to no influendce on the most valuable company in the world. So every now and then someone tries to sue his way in. Business as usual I guess...
ctdonath 14y ago
Having enough cash to, on demand, fund creation of new technologies at commodity prices is a VERY powerful industry tool. IIRC, Apple wanted "retina displays", there weren't any producers for want of enough capital to build the production facilities, so Apple wrote a check for well over a billion dollars to have the factory built, and built to a level where production was as cheap as if it had been running for many years, approaching commodity prices. Result? First product line to feature such high resolution, and at a price competitors couldn't come close to matching. Likewise other technologies and supply chain issues. You can't move that fast, stay that far ahead, with costs that low, without the ability to fork over VERY large amounts of money on a moment's notice.

pothibo 14y ago

You are assuming that spending money is always a better solution than not spending it. I think you are misled. The fact they have 100 billions in cash and not willing to jeopardize their culture and focus is a proof of their dedication to do what's best for the company.

CJefferson 14y ago
I'm not saying spending money is always better than spending it, but there is a balance. At this point 'Apple' by itself is one of the world's biggest hedge funds. Apple is not just sitting on cash, it is doing it's own investment. If the owners of Apple think they can do a better job with that giant pile of money, then they are quite within their rights to ask to be given at least some of it. They can still leave Apple with a bigger reserve than any other tech company around.

r00fus 14y ago

All I have to say is - fuck Wall St. Apple's cash generates power and leverage that's simply not quantiyable in quarterly statements. Apple has already instituted dividends as well as a one-time payout to their investors. And having around $100B means that if they lay down $20B for some super strategic shift, it doesn't require debt to be serviced. Wall Street wants all companies beholden to the quarterly cycle - and if that company has to kill it's future to make the quarter, then so be it - all the better for those who make money on both sides of the trade. That's bad for the company and bad for customers.... all so the hedge fund manager can make an extra bonus by killing jobs and US competitiveness.

hef19898 14y ago
That's why wall street doesn't like it. Apples has the benfit of being public without relying on wall street for its financial future. I guess hedgefonds and banks are less than happy with having little to no influendce on the most valuable company in the world. So every now and then someone tries to sue his way in. Business as usual I guess...

ctdonath 14y ago

Having enough cash to, on demand, fund creation of new technologies at commodity prices is a VERY powerful industry tool. IIRC, Apple wanted "retina displays", there weren't any producers for want of enough capital to build the production facilities, so Apple wrote a check for well over a billion dollars to have the factory built, and built to a level where production was as cheap as if it had been running for many years, approaching commodity prices. Result? First product line to feature such high resolution, and at a price competitors couldn't come close to matching. Likewise other technologies and supply chain issues. You can't move that fast, stay that far ahead, with costs that low, without the ability to fork over VERY large amounts of money on a moment's notice.