Apple: We won't use our cash hoard on a toga party

It's no secret that Apple, besides being one of the most successful and profitable companies in the world, also has a ton of cash on hand. In its last financial report, revealed in January, Apple confirmed that it has a whopping $97 billion in cash just burning in the company's pocket.

So what does Apple plan to do with all of that money? VentureBeat reports that Apple's CEO Tim Cook address that question during the Goldman Sachs Technology and Internet Conference on Tuesday. Specifically, an investor asked why Apple hasn't done what businesses usually do when they have lots of cash on hand; namely buy back some of Apple's stock or offer a dividend to people who already own Apple stock.

As usual, Cook didn't reveal any specific plans for Apple's money pile but did make a rather funny comment. He stated:

I only ask for a bit of patience so we can do this in a deliberate way and do it in a way that’s best for shareholders. We’re judicious, we’re deliberate, we spend our money like its our last penny … We’re not going to go have a toga party or do something outlandish.

Of course, now that he has made that statement, the next question should have been, "If Apple were to have a toga party, would you invite the surviving cast of Animal House to attend?" We wonder what Flounder is doing these days ...

Image via Universal Pictures

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As usual, apple doesn't make any solid commitments. They have a ton of cash so they should thank their customers by giving them a hundred or so odd dollars as a thank you but apple is too greedy hence they overcharge and whine when they have to fix something.

There's a whole lost generation or two in the US thanks to apple who can't use a computer without large pretty icons and an OS that's dumb proof.. meanwhile overseas..... linux, MS, and unix still flourish.

".. or offer a dividend to people who already own Apple stock." ?

Why should they when just holding the stock in the last 3 years brought 500% profit to the holders , and since 2002 the stock surged 7000% ?

alexalex said,
".. or offer a dividend to people who already own Apple stock." ?

Why should they when just holding the stock in the last 3 years brought 500% profit to the holders , and since 2002 the stock surged 7000% ?

Because that's how profit is meant to be shared when you are a floated company... profit is either meant to be reinvested in the company of given to the shareholders. If Apple has no plans to invest then then hording cash isn't really the correct tactic when having shareholders.

However...

Two thirds of the money is elsewhere around the world as marketable securities... bringing it "home" and giving it as a dividend would loose more than half of the amount to the US Government in taxes alone.

So in summary... Apple doesn't give anything to shareholders (I imagine most shareholders are American), and also dodge US taxes.... and people wonder why the US has money problems.

All your base/money are belong to us.

lt8480 said,

Because that's how profit is meant to be shared when you are a floated company... profit is either meant to be reinvested in the company of given to the shareholders. If Apple has no plans to invest then then hording cash isn't really the correct tactic when having shareholders.

However...

Two thirds of the money is elsewhere around the world as marketable securities... bringing it "home" and giving it as a dividend would loose more than half of the amount to the US Government in taxes alone.

So in summary... Apple doesn't give anything to shareholders (I imagine most shareholders are American), and also dodge US taxes.... and people wonder why the US has money problems.

All your base/money are belong to us.

Which is why the tax system should be completely revamped... The government makes enough money off of taxes, there's no need to force companies to keep their money overseas...

rippleman said,
bill gates doesn't sue anything... but Microsoft still does... any company that has grounds to sue WILL SUE, this is NOT just an apple thing...

When Apple sues its freaking ridiculous! they sue because its square, because its shiny and because if you stop an animation in second 3.456 you can see the logo of apple (unintentionally)

erikpienk said,

When Apple sues its freaking ridiculous! they sue because its square, because its shiny and because if you stop an animation in second 3.456 you can see the logo of apple (unintentionally)

Question, is ignorance bliss like they say? The don't sue because it is square, or shiny, or any other oversimplified and dumbed down reason you read about in news. They sue because they have specific patents for very specific things. If you were to actually read the patents instead of only what you see on tech blogs and news sites, you wouldn't be so ignorance to that fact. Of course, the reason tech blogs and news sites don't go into specifics and dumb it down to "its square" seems to be a requirement for people to even grasp whats going on. Also, go ahead and ignore fact that if a company doesn't enforce its patents, the patent goes into public domain.

Edited by ILikeTobacco, Feb 15 2012, 6:33am :

ILikeTobacco said,

Question, is ignorance bliss like they say? The don't sue because it is square, or shiny, or any other oversimplified and dumbed down reason you read about in news. They sue because they have specific patents for very specific things. If you were to actually read the patents instead of only what you see on tech blogs and news sites, you wouldn't be so ignorance to that fact. Of course, the reason tech blogs and news sites don't go into specifics and dumb it down to "its square" seems to be a requirement for people to even grasp whats going on. Also, go ahead and ignore fact that if a company doesn't enforce its patents, the patent goes into public domain.


This may be the most informed post regarding patents and lawsuits here.

Especially the very last sentence there. Many (most?) don't seem to understand why they HAVE to enforce their patents. It's enforce them or lose them. Very hard to pull up a patent in court if you haven't enforced it before. It's not surprising why Apple has entered a conflict with e.g. Samsung about tablets. It doesn't take much brain capacity to see why Samsung may have stepped on some hot rocks there.

How about charity? Enough with suing everyone and their mother. Jobs is gone. Lay off the lawsuits for once.... Welcome compention. License **** like everyone else does.

CMG_90 said,
How about charity? Enough with suing everyone and their mother. Jobs is gone. Lay off the lawsuits for once.... Welcome compention. License **** like everyone else does.

Charity is inefficient. If they should launch a philantrophic arm, I suggest they should do it like Bill Gates or Google.

Northgrove said,

Charity is inefficient. If they should launch a philantrophic arm, I suggest they should do it like Bill Gates or Google.

Northgrove said,

Charity is inefficient. If they should launch a philantrophic arm, I suggest they should do it like Bill Gates or Google.

Donating to charity is inefficient? Ok money bags.

CMG_90 said,
Donating to charity is inefficient? Ok money bags.

It's inefficient, not pointless. The thing about charity organisations is that they require upkeep to continue existing which costs money in itself.
If I pull a couple of statistics from nowhere to create an analogy, imagine donating £10 to a charity. Out of that they have to deduct a certain amount - let's say 10% - for administration fees and rent to have the property. So from the £10 that you gave to a charity, only £9 goes to the end cause.
Instead, Apple could invest their without using the middleman (i.e. the charities) and by doing so they will get more bang for their buck.

PyX said,
The new Apple Campus is going to cost a lot though.

True. lol But that will be a multi-year investment, and money just keeps rolling in... LOL

Rudie32 said,
A little bill gates influence wouldn't hurt that much.

you mean give money to a charity when it could be used to sue some other company over frivolous things? how dare you suggest that?!

Rudie32 said,
A little bill gates influence wouldn't hurt that much.

As I recall Bill didn't give away any of Microsoft's money (maybe through company sponsored charity matching programs or something similar, I don't know). What he's famous for is giving away his personal earnings.

stevan said,
Ah Slayer, calling you an idiot would be an insult to all the stupid people.

Go troll somewhere else.

Ah stevan, who are you?

Apple used to get plenty of my money. Then I tried Windows 7 and Windows Phone and have since moved my business to other vendors.

I do have to thank Apple for making Microsoft much more competitive. I don't mind if Apple becomes a trillion dollar company as long as their market share stays at around 10%.

See that, tools of the world? This is what you've contributed to. People everywhere are losing their jobs and starving, but good ol' Apple's got almost 100 billion in the bank, waiting for a rainy day to spend it on something nice. That's what you cause when you buy overpriced, shiny junk because you don't know what a buzzword is.

And all those factory workers committing suicide? Eh, we'll just move on to the second-cheapest manufacturer in the world. Perhaps their slave labour will be ever-so-slightly less disgusting.

Slayer said,
See that, tools of the world? This is what you've contributed to. People everywhere are losing their jobs and starving, but good ol' Apple's got almost 100 billion in the bank, waiting for a rainy day to spend it on something nice. That's what you cause when you buy overpriced, shiny junk because you don't know what a buzzword is.

And all those factory workers committing suicide? Eh, we'll just move on to the second-cheapest manufacturer in the world. Perhaps their slave labour will be ever-so-slightly less disgusting.

So you suggest that Apple do what Sun Microsystems did and make a whole heap of stupid investments that bring the company to the verge of bankruptcy? there is a reason why Tim Cook is the CEO and you aren't.

Slayer said,
See that, tools of the world? This is what you've contributed to. People everywhere are losing their jobs and starving, but good ol' Apple's got almost 100 billion in the bank, waiting for a rainy day to spend it on something nice. That's what you cause when you buy overpriced, shiny junk because you don't know what a buzzword is.

And all those factory workers committing suicide? Eh, we'll just move on to the second-cheapest manufacturer in the world. Perhaps their slave labour will be ever-so-slightly less disgusting.

Although this doesn't have much relation to the article, some of your claims could be correct.

So just because you don't like some products from a company make it junks?

You have every right to not like whatever you wish, but i think if they made junk they wouln't have this much in their pockets.

Slayer said,
See that, tools of the world? This is what you've contributed to. People everywhere are losing their jobs and starving, but good ol' Apple's got almost 100 billion in the bank, waiting for a rainy day to spend it on something nice. That's what you cause when you buy overpriced, shiny junk because you don't know what a buzzword is.

And all those factory workers committing suicide? Eh, we'll just move on to the second-cheapest manufacturer in the world. Perhaps their slave labour will be ever-so-slightly less disgusting.

Because Apple makes money they now need to be the moral authority of the world? The goal of Apple Computer, or any corporation, is to increase the value of its shareholders. I think that is page 2 of business 101. I personally don't think I would want Tim Cook, or Steve Jobs, making decisions as to what people to feed, or where best to build a plant to help people, or what people they should help or not.

and this is why you are not CEO of a scuccesful company...

Slayer said,
See that, tools of the world? This is what you've contributed to. People everywhere are losing their jobs and starving, but good ol' Apple's got almost 100 billion in the bank, waiting for a rainy day to spend it on something nice. That's what you cause when you buy overpriced, shiny junk because you don't know what a buzzword is.

And all those factory workers committing suicide? Eh, we'll just move on to the second-cheapest manufacturer in the world. Perhaps their slave labour will be ever-so-slightly less disgusting.

rippleman said,
and this is why you are not CEO of a successful company...

All of you should be ashamed!,
what sort of human beings have you become to say its ok to win so much money and dont help the world, we are all human beings, we are all living in the same world, we are all doomed to prevail if this goes on, you think that the 90% of poor people in the world will do what companies make them do forever?
I think Capitalism is the way, but also is important to keep the human side of things, that money could open new business that help in a 3rd world country or to help in any way that makes a more educated world and more oportunities.

erikpienk said,

All of you should be ashamed!,
what sort of human beings have you become to say its ok to win so much money and dont help the world, we are all human beings, we are all living in the same world, we are all doomed to prevail if this goes on, you think that the 90% of poor people in the world will do what companies make them do forever?
I think Capitalism is the way, but also is important to keep the human side of things, that money could open new business that help in a 3rd world country or to help in any way that makes a more educated world and more oportunities.

So as soon as you get money you should start throwing it around? The best form of charity is to grow your business and provide employment to people of which Apple has accomplished the following:

2011: 63,300
2008: 35,100
2007: 23,700

I don't know about you but those extra 40,000 employees are happy that they've got a pay-packet rather than sitting on the bread line receiving handouts courtesy of your belief that hand outs are better than a job.

erikpienk said,

All of you should be ashamed!,
what sort of human beings have you become to say its ok to win so much money and dont help the world, we are all human beings, we are all living in the same world, we are all doomed to prevail if this goes on, you think that the 90% of poor people in the world will do what companies make them do forever?
I think Capitalism is the way, but also is important to keep the human side of things, that money could open new business that help in a 3rd world country or to help in any way that makes a more educated world and more oportunities.

Apple doesn't have its money stored in a giant underground vault. It has invested it into the economy in many different short and long term securities. That money could very well be being used to fund new businesses in America and elsewhere.

Slayer said,
See that, tools of the world? This is what you've contributed to. People everywhere are losing their jobs and starving, but good ol' Apple's got almost 100 billion in the bank, waiting for a rainy day to spend it on something nice. That's what you cause when you buy overpriced, shiny junk because you don't know what a buzzword is.

And all those factory workers committing suicide? Eh, we'll just move on to the second-cheapest manufacturer in the world. Perhaps their slave labour will be ever-so-slightly less disgusting.


Huh?

Do you honestly think the USA would be better off if Apple left the country? One of the largest companies in the world, and a major catalyst for the American IT industry?

People may be losing their jobs for all sorts of reasons, not the least government politics, and I don't think "Apple stealing their job" ranks very high. If Apple is doing anything as they're growing, it's creating jobs. Successful companies tend to do that and that's why countries tend to want to have successful companies.

Mr Nom Nom's said,

So as soon as you get money you should start throwing it around? The best form of charity is to grow your business and provide employment to people of which Apple has accomplished the following:

2011: 63,300
2008: 35,100
2007: 23,700

I don't know about you but those extra 40,000 employees are happy that they've got a pay-packet rather than sitting on the bread line receiving handouts courtesy of your belief that hand outs are better than a job.

Exactly. I always like the people that believe that companies are contributing absolutely nothing to the economy or to bettering people's lives... It's absurd.

betasp said,

Because Apple makes money they now need to be the moral authority of the world?

Nah, being human means that. More and more corporations are not groups of people making products and profit but a way to insulate the humans involved from their own humanity to make products and profit.

Stetson said,

Apple doesn't have its money stored in a giant underground vault. It has invested it into the economy in many different short and long term securities. That money could very well be being used to fund new businesses in America and elsewhere.

First sensible thing someone has said. VERY true.