Note that they do spend billions of that money. For example unlike most companies, Apple buys the manufacturing equipment at Foxconn used to make their product

Note that they do spend billions of that money. For example unlike most companies, Apple buys the manufacturing equipment at Foxconn used to make their products. This means Foxconn doesn't have to take capital risks, and also that the equipment is not available to Foxconn's other customers. (The CNC machining for making unibody macbooks is one example.) There are also rumours of having spent large sums to prop up Sharp. Some asymco articles on their capital spending (almost all of which is outside of the US): http://www.asymco.com/2012/12/11/the-new-age-of-capital-intensity/ http://www.asymco.com/2012/12/11/the-new-age-of-capital-inte... http://www.asymco.com/2012/10/31/hey-big-spender/ http://www.asymco.com/2012/10/31/hey-big-spender/ http://www.asymco.com/2012/11/07/recapex-the-curious-case-of-apples-2012-and-2013-capital-expenditures/ http://www.asymco.com/2012/11/07/recapex-the-curious-case-of... Apple's problem is that they make so much in profits that anything they do ends up not making much of a dent.