Apple now has more cash on hand than the US Government

Earlier this month we reported that Apple has a ton of cash on hand. In fact, its latest financial results revealed that the tech company has a whopping $76.2 billion of the cold hard stuff sitting wherever that much money is stored. As we previously wrote, that means that if Apple wanted to, it could give $247 to each man, woman and child in the US. Now as members of the US House and the US Senate debate on whether or not to raise the country's debt ceiling in order to avoid a default, the US government has revealed it now has less cash on hand than Apple.

According to The Atlantic, the US Treasury has announced that as of Thursday it has a cash balance of just $73.768 billion. While the article does admit the two numbers can't really be directly compared, it does show just how much money Apple does have to do, well, pretty much anything it wants. Indeed, even in the face of economic armageddon, Apple's stock continues to go up. Earlier this week Apple's stock reached and exceeded $400 a share. Its current stock price as of today is around $392.

Apple's current market worth is a massive $363.25 billion. That number now makes the creator of the iPhone, the iPad, the iPod line and the Mac series of desktops and notebooks (and yes, even the Apple TV) the second biggest company on the planet. Only the Exxon Mobile oil company is now bigger than Apple.

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The only reason apple has that much because: They gouge their customers and charge mega bucks for things that should be half price. also, apple does not give fair deals but if they did then they would charge an arm and a leg for it, which to me is dumb. Hey apple fail if you want more happy customers then for christ sake, lower ur damn prices and only charge slightly higher instead of triple or quad the cost. Apple, you could donate alot of that money that you practically "stole" from customers, to the homeless or better yet, do something similar to what gates does.

So what the US government need to do at this point is get a huge cash injection from Bill Gates, completely revamp their business model and everything will be rosie in 15 to 20 yes?

The US has no money, not a single Pennie. Untill they pay off their 14 + trillion, a hobo on the street with even a dollar has more money.

The US has no money, not a single Pennie. Untill they pay off their 14 + trillion, a hobo on the street with even a dollar has more money.

US should sell Apple to the chineses, it worth a fortune, their boss is a dick and their products are gimmick.

Holy **** I just lost all faith left in the Neowin community. You guys seriously are even more stupid than that article... Damn... This is worse than YouTube comments.

Holy **** I just lost all faith left in the Neowin community. You guys seriously are even more stupid than that article... Damn... This is worse than YouTube comments.

jesseinsf said,
I wonder if Apple has been paying their taxes. If so, I'd like to know how much have they paid.

No big company pays their taxes, or at least a big part of their taxes, only the average citizen is who pays completely

Hello we are Apple and lets see how much we are ripping you off. Ah it seems like we are really really ripping you off. Good news for shareholders, we will be raising the rip off factor over the next three years in the form of itax, iInflate and iReleasethesameproductinnewpackagingeveryyearwithonlytinyupgrades.

Gaffney said,
Hello we are Apple and lets see how much we are ripping you off. Ah it seems like we are really really ripping you off. Good news for shareholders, we will be raising the rip off factor over the next three years in the form of itax, iInflate and iReleasethesameproductinnewpackagingeveryyearwithonlytinyupgrades.

Do me a damn favour and try an Apple computer and compare it to a Windows computer and you'll see the difference. Not saying Windows computers are crap (nor am I an Apple fanboy), but Apple computers are certainly not as overpriced as what you're portraying - they ARE expensive though.

bastones said,

Do me a damn favour and try an Apple computer and compare it to a Windows computer and you'll see the difference. Not saying Windows computers are crap (nor am I an Apple fanboy), but Apple computers are certainly not as overpriced as what you're portraying - they ARE expensive though.


Well my $1250 (converted to USD) Windows PC is much more powerful (based on the specs) than a $2000 USD iMac.
Yeah, I can see the difference there...

Out of all the comments here, the one huge point I don't see made is: Why does Apple have so much money just sitting around not doing anything for them? A year ago Apple said they were gearing to make a purchase of some kind; stirring hype as always. Nothing came of it. Instead they just sit on tens of billions. Real smart Apple.

Xenosion said,
Out of all the comments here, the one huge point I don't see made is: Why does Apple have so much money just sitting around not doing anything for them? A year ago Apple said they were gearing to make a purchase of some kind; stirring hype as always. Nothing came of it. Instead they just sit on tens of billions. Real smart Apple.
my thoughts exactly, it is rather bad for Apple to sit on the amount of money, it shows that they are just ripping customers, could sell products much cheaper while on the other hand they have little ideas for future other than pimping existing products? Sitting on plain $$$ is bad from economically & business point of view, goods, properties are important and apparently Apple has no idea what to spend money on

Xenosion said,
Out of all the comments here, the one huge point I don't see made is: Why does Apple have so much money just sitting around not doing anything for them? A year ago Apple said they were gearing to make a purchase of some kind; stirring hype as always. Nothing came of it. Instead they just sit on tens of billions. Real smart Apple.

No, they didn't say they 'would', they basically said they

Xenosion said,
Out of all the comments here, the one huge point I don't see made is: Why does Apple have so much money just sitting around not doing anything for them? A year ago Apple said they were gearing to make a purchase of some kind; stirring hype as always. Nothing came of it. Instead they just sit on tens of billions. Real smart Apple.

No, they didn't say they 'would', they basically said they want to keep the cash for any acquision opportunities that may well come around the corner soon or at a later date. As far as I remember they did not state during the conference call that they would definitely be making big acquisitions.

bastones said,

No, they didn't say they 'would', they basically said they want to keep the cash for any acquision opportunities that may well come around the corner soon or at a later date. As far as I remember they did not state during the conference call that they would definitely be making big acquisitions.


Oh so they didn't say they "would". They said they "may". Even still, gloating about how many tens of billions you have saved up is as amateur as it comes. That's my point.

Apple has few good choices. If the bring the money into the US to pay out in dividends like many companies do, they take a massive tax hit on it.. Basically just throwing the money away.
I'm sure they are investing as much as they want in everything they want.
They don't really want to buy any companies at the moment.. though that could change any day..

And having all that cash on hand makes the company look Very attractive to the market, thus increasing their stock price.

sviola said,
I wonder how long it will take until Apple stockholders start demanding they pay dividends...

This.

I am glad I'm not an Apple shareholder as this would **** me off. Apple's board is sitting on shareholder money and not giving it to the shareholders...

Frazell Thomas said,
This.

I am glad I'm not an Apple shareholder as this would **** me off. Apple's board is sitting on shareholder money and not giving it to the shareholders...

If they bring it to the US to give out a dividends, then it will be subject to US taxes and it's value would drop significantly.
Additionally this Cash on Hand puts Apple in a very good position in the market, making the Stock worth more, thus helping the stock holders.

Anyone who would get ****ed off over this has no business being in the market and should go back to putting their money under the mattress.

With the federal Reserve being the only entity authorized to print money, The US government only needs to cut some trees to surpass apple..

raghavny80 said,
With the federal Reserve being the only entity authorized to print money, The US government only needs to cut some trees to surpass apple..
Except when you do that, the "value" of the money in relation to other markets goes down. Seeing as how most of Apple's "Cash on Hand" is located outside the US, and probably not in US Funds, that would mean their Cash would increase in value at almost the same rate as the US made more cash.

raghavny80 said,
With the federal Reserve being the only entity authorized to print money, The US government only needs to cut some trees to surpass apple..

Yeah but the Federal reserve is part of the problem, it has to go and the United States has to take control and start printing it's own money again.

Going back to the gold standard would also help, but then again we don't really have the gold either.

benzema said,
apple just suck... And this news sucks more...

Yeah, more apple non-news... next on Neowin:
BREAKING NEWS: Steve Jobs spotted at gumball machine purchasing six gumballs.

Enron said,

BREAKING NEWS: Steve Jobs spotted at gumball machine purchasing six gumballs.

And then he sues the gumball factory for making gumballs with rounded edges.

PlogCF said,

And then he sues the gumball factory for making gumballs with rounded edges.

then he buys the company and everyone that makes gumball shaped balls ... well Sued.

Spinning off market value is so misleading. Market value just means how much money the Wall Street Betters are willing to risk betting on the Corporate horses.

Yes right now Apple is a winning horse. The issue with market value is simple. If Apple gets beaten at any point, that market will crash on Apple and many will lose a lot of money. Right now Apple has betted all that money on the iPod family of products. If Apple can't come up with anything past that, then what? 1997 all over again?

The iPod is already dropping in sales. iPhone's market is growing in numbers, but its marketshare is not. It, like Microsoft has been holding pretty steady.

The gamblers are willing to take more risks on Apple vs Microsoft, yet unlike apple; Microsoft has seen profits every single year, even with Vista marketing nightmare. Byt the gamblers arent willing to take more risk.

Also Microsoft stock value has been split a numerous amounts of time to help aid in placing more bets. No one seems to want to bet. probably bec they are spending it all on Apple. Apple never split their which make sit look liek it is worth so much more than MS. if you consider Microsoft splits and round them back up, likely MS stock would be above the $400 mark.

Anyone who listens to hype on market value are just stupid. Apple has $76B in cash. How much does MS have in cash?

What is the true asset value of Apple? What is the true asset value of Microsoft.
Here is a piece of fact for you. In 2000 it was estimated the total asset worth of Microsoft Corporation exceeded the total value of the USA Governement. Not cash value, asset value.

Theer are lots of company's right now who have more money than the USA govt. Thats not really saying anything.

I relealize neowin says they are "Unprofessional journalism that looks better", but sensationalizing everything Apple is really getting out of hand. I wonder has their ever been a day that Microsoft wis they didnt help Apple?!

TechieXP said,
Blah Blah Market Value Blah Blah

Guess what? This is all about cash on hand, not market value. The article clearly states this and only mentions Apple's market value as a side fact. Take a break.

TechieXP said,
Spinning off market value is so misleading. Market value just means how much money the Wall Street Betters are willing to risk betting on the Corporate horses.

Yes right now Apple is a winning horse. The issue with market value is simple. If Apple gets beaten at any point, that market will crash on Apple and many will lose a lot of money. Right now Apple has betted all that money on the iPod family of products. If Apple can't come up with anything past that, then what? 1997 all over again?

The iPod is already dropping in sales. iPhone's market is growing in numbers, but its marketshare is not. It, like Microsoft has been holding pretty steady.

The gamblers are willing to take more risks on Apple vs Microsoft, yet unlike apple; Microsoft has seen profits every single year, even with Vista marketing nightmare. Byt the gamblers arent willing to take more risk.

Also Microsoft stock value has been split a numerous amounts of time to help aid in placing more bets. No one seems to want to bet. probably bec they are spending it all on Apple. Apple never split their which make sit look liek it is worth so much more than MS. if you consider Microsoft splits and round them back up, likely MS stock would be above the $400 mark.

Anyone who listens to hype on market value are just stupid. Apple has $76B in cash. How much does MS have in cash?

What is the true asset value of Apple? What is the true asset value of Microsoft.
Here is a piece of fact for you. In 2000 it was estimated the total asset worth of Microsoft Corporation exceeded the total value of the USA Governement. Not cash value, asset value.

Theer are lots of company's right now who have more money than the USA govt. Thats not really saying anything.

I relealize neowin says they are "Unprofessional journalism that looks better", but sensationalizing everything Apple is really getting out of hand. I wonder has their ever been a day that Microsoft wis they didnt help Apple?!

+1

If taxes were a linear ratio rather than a bell curve, companies and individuals with absurd amounts of money would be helping out Uncle Sam rather than just saying "I'm rich! What do I care?"

Net worth is what the company is worth upon dissolution and liquidation. It is not cash on hand. There would be no hand to put the cash in.

GreyWolf said,
Net worth is what the company is worth upon dissolution and liquidation. It is not cash on hand. There would be no hand to put the cash in.

put that ish in my hand!

GreyWolf said,
Net worth is what the company is worth upon dissolution and liquidation. It is not cash on hand. There would be no hand to put the cash in.

Let alone a big enough hand at that.

GreyWolf said,
Net worth is what the company is worth upon dissolution and liquidation. It is not cash on hand. There would be no hand to put the cash in.

but the 70 something billion IS cash on hand

GreyWolf said,
Net worth is what the company is worth upon dissolution and liquidation. It is not cash on hand. There would be no hand to put the cash in.

"Apple's current market worth is a massive $363.25 billion."
"...tech company has a whopping $76.2 billion of the cold hard stuff sitting wherever..."

The article distinguishes between both.

Seeing as how the US Government has no money, I also have more cash on hand than the US Government.

With that said, Obama should seize all of Apple's money and say lol thx.

just raise the taxes and the government will rape.. I mean, take more from the american people and have more than Apple in no time.

A day will come when the biggest competitor to iPad and iPhone will be the previous generation. That will plateau their growth.

Hmmm thats funny, bec Fortune Magazine list these corps as the top 10:
Wal-Mart Stores
Exxon Mobil
Chevron
ConocoPhillips
Fannie Mae
Berkshire Hathaway
General Motors
Bank of America
Ford Motor

You said Apple was second behind Exxon? You must mean 3rd, bec no one has more money than Wal-Mart.

TechieXP said,
Hmmm thats funny, bec Fortune Magazine list these corps as the top 10:
Wal-Mart Stores
Exxon Mobil
Chevron
ConocoPhillips
Fannie Mae
Berkshire Hathaway
General Motors
Bank of America
Ford Motor

You said Apple was second behind Exxon? You must mean 3rd, bec no one has more money than Wal-Mart.

The Fortune 500 lists companies by revenue, the article said "market value" which refers to market capitalization (market cap), ie the share price multiplied by the number of shares. Market cap is essentially what investors believe to be the value of the company's assets plus the value of all future income (which is discounted for the time value of money).

TechieXP said,
Hmmm thats funny, bec Fortune Magazine list these corps as the top 10:
Wal-Mart Stores
Exxon Mobil
Chevron
ConocoPhillips
Fannie Mae
Berkshire Hathaway
General Motors
Bank of America
Ford Motor

You said Apple was second behind Exxon? You must mean 3rd, bec no one has more money than Wal-Mart.

The Fortune 500 lists companies by revenue, the article said "market value" which refers to market capitalization (market cap), ie the share price multiplied by the number of shares. Market cap is essentially what investors believe to be the value of the company's assets plus the value of all future income (which is discounted for the time value of money).

Siiiggghhhh, I used to be a trainee accountant and you can make end of year figures mean anything. Even if you made a massive loss, not saying that apple have done so.

Basically..... just **** off with this rubbish we are not bothered.

There are some cases where cash on the balance sheet isn't necessarily a good thing. If a company is not able to generate enough profits internally, they may turn to a bank and borrow money. The money sitting on the balance sheet as cash may actually be borrowed money. To find out, you are going to have to look at the amount of debt a company has (we will be discussing this later on in the lesson). The moral: You probably won't be able to tell if a company is weak based on cash alone; the amount of debt is far more important.

Source: About.com

kavi14 said,
There are some cases where cash on the balance sheet isn't necessarily a good thing. If a company is not able to generate enough profits internally, they may turn to a bank and borrow money. The money sitting on the balance sheet as cash may actually be borrowed money. To find out, you are going to have to look at the amount of debt a company has (we will be discussing this later on in the lesson). The moral: You probably won't be able to tell if a company is weak based on cash alone; the amount of debt is far more important.

Source: About.com

Apple has $0 debt. So their net-cash position is $76 billion. Most of which is in foreign accounts which they don't want to bring over due to high corporate tax rate.

KingCrimson said,

Apple has $0 debt. So their net-cash position is $76 billion. Most of which is in foreign accounts which they don't want to bring over due to high corporate tax rate.

Yeah I don't think Apple should pay corporate taxes, its up to us to pay down the debt.

Joe05 said,

Yeah I don't think Apple should pay corporate taxes, its up to us to pay down the debt.

apple should donate it to the government to help them out a little bit!

argentum76 said,
They really know how to do business and sell!

(Completing your sentence)
overpriced and hyped products!

Considering they sell the most overpriced computer products and earth and Steve Jobs has never given a penny to charity, is this really a big surprise?

devHead said,
Considering they sell the most overpriced computer products and earth and Steve Jobs has never given a penny to charity, is this really a big surprise?

this

devHead said,
Considering they sell the most overpriced computer products and earth and Steve Jobs has never given a penny to charity, is this really a big surprise?

Win. Especially the part of Apple not giving to charity. That's the only reason why they're richer in the first place.

PlogCF said,

Win. Especially the part of Apple not giving to charity. That's the only reason why they're richer in the first place.

Yeah right. The have that much money because they don't give money to charity.... That's the only reason...

argentum76 said,

Yeah right. The have that much money because they don't give money to charity.... That's the only reason...

Okay, correction: that's one of many reasons. We all know that they're overpriced as well.

PlogCF said,

Okay, correction: that's one of many reasons. We all know that they're overpriced as well.

People are willing to pay the "Apple Tax" for several reasons:

* Apple products just work(not buggy, crashing, good workflows and beautiful UIs)
* Apple stores - a way for people to get their product looked at, repaired or exchanged

Let me know when Samsung can compete with that.

KingCrimson said,

* Apple products just work(not buggy, crashing, good workflows and beautiful UIs)

Haha. Hahahahahahahahahaha.

KingCrimson said,

People are willing to pay the "Apple Tax" for several reasons:

* Apple products just work(not buggy, crashing, good workflows and beautiful UIs)
* Apple stores - a way for people to get their product looked at, repaired or exchanged

Let me know when Samsung can compete with that.

Hmmm, my wife would argue about the beautiful UI... today she was so frustrated with the new address book she wanted to throw her Macbook (probably at me). She isn't fond of the new Calendar app either. I don't know what it is... Apple trying to create software modeled after real life objects... that doesn't always work well. It's either that or that they are designing everything for touch screen now... not sure which.

KingCrimson said,

* Apple products just work(not buggy, crashing, good workflows and beautiful UIs)

LMAO

* Check crash log any iPhone, iPad etc.
* You do know went application just closes for no reason its called crashing?
* My iPad crashes a lot...
* Try reading reviews of apps...

Yes my Samsung Galaxy crashes as well but I never paid Apple Tax.

On subject government should not sit on cash anyway....

PlogCF said,

Okay, correction: that's one of many reasons. We all know that they're overpriced as well.

Then why is the Macbook Air cheaper than a comparable Windows PC...?

devHead said,
Considering they sell the most overpriced computer products and earth and Steve Jobs has never given a penny to charity, is this really a big surprise?

How do you know Apple hasn't donated money to charity in the first place? They may have done so but havent publicly announced it.

devHead said,
Steve Jobs has never given a penny to charity, is this really a big surprise?
Care to cite that ? Cause unless people or the charity publicly announces it, you have no idea what they have donated and too whom..

Now I have no evidence that Jobs has donated to Charity, but I don't assume that just because he doesn't make a scene out of it, means he doesn't at all.

I mean no one has any proof that I donate to charity, but I do..

Kaidiir said,

Haha. Hahahahahahahahahaha.


Yeah I was about to say , apparently I must have the worlds only buggy Mac book pro, and my wife is on her third iPhone 4 and this one is buggy as well.

devHead said,
Considering they sell the most overpriced computer products and earth and Steve Jobs has never given a penny to charity, is this really a big surprise?

You're an idiot, Steve Jobs' charity giving has nothing to do with Apple's donations, they're separate entities. The CEO of a company can only do what's in the interests of the company with the company's money; companies can only donate to charity to the extent that they gain a benefit from it, eg in PR, goodwill etc.

KingCrimson said,

People are willing to pay the "Apple Tax" for several reasons:

* Apple products just work(not buggy, crashing, good workflows and beautiful UIs)
* Apple stores - a way for people to get their product looked at, repaired or exchanged

Let me know when Samsung can compete with that.

You do realise your second point completely contradicts the first don't you? I the products work so well why do you require a store to service them?

Don't call people idiots; this is just a forum with everyone giving opinions. But the part about Apple's computers being the most overpriced is pretty much true.

Geranium_Z__NL said,

Intel Core i7 laptop 2.0 ghz, 4GB Ram GT560 2GB Ram Videocard 769 Euros

http://azerty.nl/0-1237-399240...gb-dvd-rw-r-dl-dvd-ram.html

Apple Macbook Air

11-inch: 64 GB

1,6-GHz dual-core Intel Core i5-
processor
2 GB geheugen
64 GB flash-opslag1
Intel HD Graphics 3000


€ 949,00

You realise 11-13" ultra portables come at a price, whether they're Apple or not, right? You can't compare them to laptops with 15" screens.

snappyfool said,

You realise 11-13" ultra portables come at a price, whether they're Apple or not, right? You can't compare them to laptops with 15" screens.

Heh "Then why is the Macbook Air cheaper than a comparable Windows PC...?"

I just said It wasnt.

devHead said,
Don't call people idiots; this is just a forum with everyone giving opinions. But the part about Apple's computers being the most overpriced is pretty much true.

No, it's still an opinion. There are a million things that you can buy that have a cheaper counterpart. Whether it's comparable or not, and justifying the extra cash is completely up to the buyer. Every company doesn't have the same overhead.

And the Windows PC that's more comparable to the Air that people are referring to is the Samsung Series 9.

1.4 GHz i5
4GB memory
128GB flash
Intel HD Graphics 3000
Weight: 2.8 lbs
$1,649.99

Macbook Air 13-inch
1.7GHz dual-core Intel Core i5
4GB memory
128GB flash storage
Intel HD Graphics 3000
Weight: 2.3 lbs
$1,299.00

Source: http://www.samsung.com/us/computer/laptops/NP900X3A-A03US
http://store.apple.com/us/brow..._air/select?mco=MjMzOTQxMjE


So, I'm going to play the troll game and say that, based off of one example, Samsung makes the most over priced crap in the history of forever even though I love my TV and phone made by them.

KingCrimson said,

People are willing to pay the "Apple Tax" for several reasons:

* Apple products just work(not buggy, crashing, good workflows and beautiful UIs)
* Apple stores - a way for people to get their product looked at, repaired or exchanged

Let me know when Samsung can compete with that.


Beautiful UIs? Try just one UI that gets an "update" with each new major release. As for not buggy and not crashing, I guess you haven't seen the rainbow pinwheel of doom, or the fact that stuff can close randomly.

Also, as it's been said before you contradicted yourself.

Geranium_Z__NL said,

Heh "Then why is the Macbook Air cheaper than a comparable Windows PC...?"

I just said It wasnt.


And I just said it wasn't comparable?

America has no cash it's biased off a imaginary number they can just say US have 1 trillion dollars out of no where and need no proof because it's biased on paper

I dont know who came up with this crap, but it's spread all over the internet. You can't even compare the two numbers. And the title is just a flat lie.

Gabe3 said,

bill gates probably donated most of it away

He said Microsoft, he didn't say Bill Gates. Gates had $55B of his OWN money. His money has nothing to do with what Microsoft has on hand. MS has been spending a lot of money lately so likely has less than Apple collecting dust.

Navan said,
Microsoft has that much cash too, don't they?

I don't think it's anywhere near Apple's, but they do have 20bn+ if I recall, but Microsoft also have some debts (good debts though, it's normally healthy for a company to have some debt)

This article is pure nonsense. Of course The Atlantic makes a disclaimer that the two can't be compared but then leads the story with a completely false title.

NPGMBR said,
This article is pure nonsense. Of course The Atlantic makes a disclaimer that the two can't be compared but then leads the story with a completely false title.
Apple has $76bn in cash. The US Govt. has $73bn in cash. Maybe you should read the article and research before you rant?