Apple to announce its plan for its huge cash horde Monday

For a long time, Apple has been generating a ton of revenue thanks to its sales success of its various products, including the iPhone, iPad, iPods and Mac hardware products. As a result, the company has also been saving up its cash balance as well. In its last quarterly financial report in January, Apple said that its current cash balance is at $97 billion. It's more than possible that the company's cash horde is over $100 billion at this point.

Many analysts and shareholders of Apple have been wondering what, if anything, the company plans to do with all of that Scrooge McDuck cash. On Monday morning, we should get at least part of an answer. In an unusual move, Apple will hold a financial conference call that is outside its normal quarterly timeline on Monday morning at 9 am Eastern time.

The conference call will have Apple CEO Tim Cook and the company's CFO Peter Oppenheimer in attendance. According to Apple's press release, the subject of the conference call will be "to announce the outcome of the Company’s discussions concerning its cash balance." The press release makes it very clear that only the cash balance subject will be under discussion; no other topics will be addressed on Monday morning.

There are several things that Apple could do with its cash balance. It could buy back some of its stock or it could offer a dividend to the company's current stock holders. Apple could also make one or more major acquisitions or spend it on itself to expand its own efforts. With that amount of money on hand, Apple could possibly do all those things.

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Finally going to make some money off that Apple stock without having to sell it... that only took how long? Apple hasn't released dividends for ever... so we just sat on a piece of paper basically saying IOU while we hoard money

neufuse said,
Finally going to make some money off that Apple stock without having to sell it... that only took how long? Apple hasn't released dividends for ever... so we just sat on a piece of paper basically saying IOU while we hoard money

Not exactly correct: in the '90s Apple was paying dividends and MS did not, then Apple stopped doing it and MS began.
Interestingly MS began paying dividends when the value of the shares was becoming stagnant........ but the situation, unfortunately, did not change; maybe Apple is trying to act preemptively.................

Fritzly said,

Not exactly correct: in the '90s Apple was paying dividends and MS did not, then Apple stopped doing it and MS began.
Interestingly MS began paying dividends when the value of the shares was becoming stagnant........ but the situation, unfortunately, did not change; maybe Apple is trying to act preemptively.................

I didn't save never, I said it's been forever.. as in a long time... last dividend Apple paid out was in nov of 1995! to me that is forever! and hat was a whole 3 cents a share

neufuse said,

I didn't save never, I said it's been forever.. as in a long time... last dividend Apple paid out was in nov of 1995! to me that is forever! and hat was a whole 3 cents a share

Believe me if you hold Apple shares, and bought them a couple of years ago, you are way better than me holding MS shares............................... (-:

neufuse said,

I didn't save never, I said it's been forever.. as in a long time... last dividend Apple paid out was in nov of 1995! to me that is forever! and hat was a whole 3 cents a share

Believe me if you hold Apple shares, and bought them a couple of years ago, you are way better than me holding MS shares............................... (-:

neufuse said,

I didn't save never, I said it's been forever.. as in a long time... last dividend Apple paid out was in nov of 1995! to me that is forever! and hat was a whole 3 cents a share

Believe me if you hold Apple shares, and bought them a couple of years ago, you are way better than me holding MS shares............................... (-:

Fritzly said,

Believe me if you hold Apple shares, and bought them a couple of years ago, you are way better than me holding MS shares............................... (-:

yes, but that is cash you still can't spend unless you sell the shares... dividends at least are a form of cash flow... and yeah , I bought around 2000 when the stock was about $8 a share... it was considered a "value stock" at the time... wont say how much because some people scream when you talk about cash on here... but it is worth a pretty large chunk of change right now with AAPL at $599 a share... and there was 2 splits since then so have 4x the shares... ironically didn't buy a share personally of appl since then, 401(k) has a pretty good amount invested in it though... which scares me when a fund like that puts 30% of their fund into one company... and another 30% in to exxon...

$97 billion?
Love how everyone keeps feeding their pockets with their proprietary BS - you can't install it unless we tell you you can....etc. etc. etc.

execute steve jobs' galactic empire roadmap. what. you bunch of nincompoops actually think apple's spaceship campus is land-bound?

Edited by Albert, Mar 19 2012, 12:24pm :

jingarelho said,
Buy Portugal!

Shape it in the form of a apple.

Create the first truly corporate country.

Would be the only profitable country on the planet if they took charge. If anything, Apple knows how to run a business.

djdanster said,
Buy a religious institute and make "iRelig" an official religion.

What do they need another religious institution for?

Do you all really(, really ?) believe that Apple will announce anything exciting ? You'll seen boring iPhone 4s, boring NEW iPad and now they announce BORING plans for their cash.

I just piiissed my pants. How AMAZING is this ?

all they will do is generate share dividends for their shareholders and their exec board ;o) they are a company, not the new religion like a lot in our industry "think"

Mando said,
all they will do is generate share dividends for their shareholders and their exec board ;o) they are a company, not the new religion like a lot in our industry "think"

If they were keen on dividends they wouldn't have this much in the first place.

I expect a stock buy back - which will inflate the price even higher that it currently is.

Major company acquisition may also be on the cards...

... any Cryogenic companies up for sale?

Mando said,
all they will do is generate share dividends for their shareholders and their exec board ;o) they are a company, not the new religion like a lot in our industry "think"

Apple doesn't seem to be too keen on dividends, in fact, they've taken a good deal of heat over that through the years. My guess is an acquisition... A buy back is possible, but not really worth making such a big deal about.

M_Lyons10 said,

Apple doesn't seem to be too keen on dividends, in fact, they've taken a good deal of heat over that through the years. My guess is an acquisition... A buy back is possible, but not really worth making such a big deal about.

Buyback and dividends..... This is the same strategy MS unfolded few years ago.....

lt8480 said,

If they were keen on dividends they wouldn't have this much in the first place.

I expect a stock buy back - which will inflate the price even higher that it currently is.

Major company acquisition may also be on the cards...

... any Cryogenic companies up for sale?

looks like we were both right bud
http://www.bbc.co.uk/news/business-17434328

The technology giant said it would pay a quarterly dividend of $2.65 per share from July.

It will buy back up to $10bn (£6.3bn) of its own shares starting in the company's next financial year, which begins on 30 September 2012.

Edited by Mando, Mar 20 2012, 9:04am :

It's not enough to bail the U.S. government out yet...so they should continue saving up for the rainy day.

And I don't expect them to donate cause it looked like a totally alien concept to their former CEO.

On a more serious note, it's all in the finance textbooks:

pay out debt,
stash away for R&D or to make a strategic investment,
pay out as dividend.

.
.
.

or, they can create Apple Bank (iBank?) and start giving out loans to people.

Edited by zhiVago, Mar 19 2012, 9:00am :

zhiVago said,
It's not enough to bail the U.S. government out yet...so they should continue saving up for the rainy day.

And I don't expect them to donate cause it looked like a totally alien concept to their former CEO.

On a more serious note, it's all in the finance textbooks:

pay out debt,
stash away for R&D or to make a strategic investment,
pay out as dividend.

.
.
.

or, they can create Apple Bank (iBank?) and start giving out loans to people.

... as if Apple would loan money to us regular people

Albert said,

buy microsoft. payback's a beach.

Unless Microsoft sold its investment, they're probably happy with the $150 million they put into Apple back in 1997 when it was under $5 a share. It'd be worth about $18 billion today.

Enron said,

Unless Microsoft sold its investment, they're probably happy with the $150 million they put into Apple back in 1997 when it was under $5 a share. It'd be worth about $18 billion today.

they sold it long ago!

1. Hire more lawyers and mount more frivolous lawsuits.
2. Buy the media again to over hype your average products.
3. Hire more people to create generic patents and use the cash to bully the US Patent office into accepting them.
4. Create more stupid anti-Microsoft ads.
5. Triple the "magical" and "revolutionary" marketing.

sam232 said,

1. Hire more lawyers and mount more frivolous lawsuits.
2. Buy the media again to over hype your average products.
3. Hire more people to create generic patents and use the cash to bully the US Patent office into accepting them.
4. Create more stupid anti-Microsoft ads.
5. Triple the "magical" and "revolutionary" marketing.

Good man. Was about to post that.

sam232 said,

What has fanboyism got to do with anything. There is a strong element of truth in my post.


Your post was mostly crying. Apple products have a clear demographic (young, artistic, knowledgeable). Microsoft's target demographic is all over the road (which is not a bad thing). You see, Microsoft products are targeted at business types, young, old, creative, gamers, etc...). So why wouldn't Apple go after Microsoft in ads?

Jme621 said,
or they could buy a boat, you know how much they always wanted a boat. :-)

I thought they wanted to build the "mothership"? But you can never go wrong with a boat!

Jme621 said,
or they could buy a boat, you know how much they always wanted a boat. :-)

The iBoat would be awesome! You could control it with Siri and scratch your back at the top to get some sunblock sprayed over you.
I just couldn't imagine anything cooler than that.
really.

Jme621 said,
or they could buy a boat, you know how much they always wanted a boat. :-)

Boats 'n' Hoes
Boats 'n' Hoes
I gotta have me more boats 'n' hoes.