Apple's current cash horde could give $247 to each person in US

Apple's truly massive financial results on Tuesday were spectacular all around but perhaps the most impressive number is the amount of cash it has on hand. According to Apple's financial results it has a whopping $76.2 billion in cash, short term securities and long term securities. Even if Apple all of a sudden stopped generating revenue, the company could use that amount of cash to keep its business going for several years.

As the Wall Street Journal points out, the cash horde that Apple currently has in place could be used to give a $247 check to each and every person in the US. Talk about your financial stimulus package. It could purchase the hot Netflix company five times over if it wanted. The amount of cash could be used to buy out the investment bank Goldman Sacks, according to The Atlantic Wire, and still have money left over to purchase LinkedIn and Twitter.

So the big question for many people, including Apple stock holders, is what will the company do with all that money. In the past Apple has been quiet about what it might do with its cash. Some have suggested that Apple use it to pay a dividend to its stockholders. Others believe Apple might be saving money for a truly big acquisition. Some believe that it could use it to dramatically increase the number of Apple retail stores which, by the way, generated $3.5 billion in revenue in the last quarter. In the meantime, Apple continues to hold onto its cash. Unless it does spend a large amount of it this year its cash horde could reach the $100 billion mark by the end of 2011.

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49 Comments

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Lets see, at one time Bill Gates was worth $58 billion all by himself. Lets see what did he do with the money... I think he currently gives more money away to health and disease causes than the U.S. govt., what a jerk.

jimmyfal said,
Lets see, at one time Bill Gates was worth $58 billion all by himself. Lets see what did he do with the money... I think he currently gives more money away to health and disease causes than the U.S. govt., what a jerk.


At one time Gates was worth close to 100 billion, but yeah he intends to give most of it away.

If Apple earn those amount of money then i don't want to know how much Foxconn earn (Foxconn works for Apple, Acer and several other companies).

Magallanes said,
If Apple earn those amount of money then i don't want to know how much Foxconn earn (Foxconn works for Apple, Acer and several other companies).
The employees make nothing. The company makes decent profits but nothing like the money we're talking about here. Yeah they have plenty of business but they have that business because they're cheap. It's hard to be cash rich when selling cheap products (i.e. cheap labor).

That cash is mostly earning zero interest, so they should invest it or start paying dividends. Keeping that much cash uninvested just invites the sharks (hedge funds, PE firms) out of the water in hopes of breaking the company apart through an acquisition just to get at that cash.

Yeah but they're financially sound, cash rich, have popular product lines, and they're strong in customer loyalty and brand recognition. I don't think anybody is going to be breaking them up anytime in the near future.

Tjcrazy said,
No ones mentioned that 'check' is spelt 'cheque'

It's an American English vs. UK English sort of thing.

perochan said,
so... how much is microsoft worth? lol

How much are you worth? Or do you think that Apple's billions are somehow being shared with you?

Tom said,
and yet pretty much all this money is going to the greedy executives.

why wouldn't it? said executives are the reason they have the money in the first place...

rajputwarrior said,

why wouldn't it? said executives are the reason they have the money in the first place...


That is outright *********.

rajputwarrior said,

why wouldn't it? said executives are the reason they have the money in the first place...


By designing products? by building them? by programming them?

JaredFrost said,

By designing products? by building them? by programming them?

They design and program them, but the Chinese build them.

rajputwarrior said,

why wouldn't it? said executives are the reason they have the money in the first place...

Their whole work force is massively underpaid whilst the executives are pocketing the massive profits that they get from overpricing all their products. How is that fair?

Tom said,

Their whole work force is massively underpaid whilst the executives are pocketing the massive profits that they get from overpricing all their products. How is that fair?

Agreed.

Tom said,

Their whole work force is massively underpaid whilst the executives are pocketing the massive profits that they get from overpricing all their products. How is that fair?

I'm not disagreeing with this at all, but how many companies operate any differently?

Udedenkz said,
If Apple went patriotic and put all its jobs in US and not China, it would still be making massive profits.

You can say that about any billion dollar company.

SoyoS said,
Nice work by Apple. Role on $20 billion+ net income Microsoft!
Net Income and what they have saved up is two completely different things. I dont see a single net income figure in this article, so how can you even bring up anything related to Microsoft unless it was what they have saved up in cash "liquid" not what they're quarterly net income is.

Apple would never make these kind of profits if it relied on other retail vendors to sell it's products, I don't blame Microsoft for launching it's own retail division.

shakey said,
But that still isn't enough to buy one of their products

I'm always amazed at the crazy money people pay for everything Apple, the retail stores are the secret sauce for Apple success.

shakey said,
But that still isn't enough to buy one of their products

I'm always amazed at the crazy money people pay for everything Apple, the retail stores are the secret sauce for Apple success.

Apple has never been the type of company to make acquisitions to bolster its portfolio, instead it is more of the type that builds everything from ground up on its own. Pixar is the one exception, but it was completely autonomous and served no function in growing its core Mac and iProduct business before being sold to Disney. Possibilities are just endless on what it can do with that money and it will be more than enough to cook up the next big innovation.

BetaAddict said,
Apple has never been the type of company to make acquisitions to bolster its portfolio, instead it is more of the type that builds everything from ground up on its own. Pixar is the one exception, but it was completely autonomous and served no function in growing its core Mac and iProduct business before being sold to Disney. Possibilities are just endless on what it can do with that money and it will be more than enough to cook up the next big innovation.

No Apple has purchased a handful of companies, and of course have been known to just copy quite a few ideas from smaller companies without paying for it.

BetaAddict said,
Apple has never been the type of company to make acquisitions to bolster its portfolio, instead it is more of the type that builds everything from ground up on its own. Pixar is the one exception, but it was completely autonomous and served no function in growing its core Mac and iProduct business before being sold to Disney. Possibilities are just endless on what it can do with that money and it will be more than enough to cook up the next big innovation.

No Apple has purchased a handful of companies, and of course have been known to just copy quite a few ideas from smaller companies without paying for it.

Non-Active-Account said,
Apple how about creating some new jobs?

They're creating thousands of jobs... at Foxconn.

Edit: Oh, and patent lawyers.

Non-Active-Account said,
Apple how about creating some new jobs?

How about Apple paying some of it's hourly store employees a little better.

Non-Active-Account said,
Apple how about creating some new jobs?

How about Apple paying some of it's hourly store employees a little better.

Joe05 said,

How about Apple paying some of it's hourly store employees a little better.

Better than their equivalent Best Buy (or other retail) counterparts? Oh wait.

wins thread said,

If you want jobs, vote in a competent PotUS in 2012.

Wish it was that easy. I don't think the pres can do a lot about creating jobs. What he *could* do would be to get us out of these expensive wars and bring our boys home then reinvest in the U.S. to stimulate the economy here.

That's my 2 cents....

asdavis10 said,

Better than their equivalent Best Buy (or other retail) counterparts? Oh wait.

Apple has huge margins in most of it's products, They could afford it .

Tim Dawg said,
Wish it was that easy. I don't think the pres can do a lot about creating jobs. What he *could* do would be to get us out of these expensive wars and bring our boys home then reinvest in the U.S. to stimulate the economy here.

That's my 2 cents....

That's not a bad idea. Actually, it's the right idea.