Philip Elmer-DeWitt writes for Fortune that Apple, and specifically Apple CEO Steve Jobs, will ignore Bernstein Research analyst Toni Sacconaghi’s open letter calling on Apple to distribute its profits to its shareholders instead of holding and growing its cash for strategic reasons.
Elmer-DeWitt writes, “Jobs, you will recall, was ousted from Apple and had to sell NeXT in part because as a young entrepreneur he paid insufficient attention to the bottom line. When he returned to Apple in 1997 the company was, according his recollection, three months away from bankruptcy. Since then he has treated Apple’s growing cash hoard like a starvation survivor treats food in the larder — something that could disappear at any time. ‘We know if we need to acquire something — a piece of the puzzle to make something big and bold — we can write a check for it and not borrow a lot of money and put our whole company at risk,’ Jobs said in February, the last time a shareholder asked him publicly why Apple didn’t pay dividends.” ‘The cash in the bank gives us tremendous security and flexibility.'”
Elmer-DeWitt writes, “And he’s going to keep it that way, no matter how loudly the shareholders — or Toni Sacconaghi — complain.”
Full article here.
MacDailyNews Take: Go back to looking for your “missing” iPhones, Toni. And, while you’re at it, you might want to start making better estimates on Apple Inc. than the “amateur bloggers” do. Leave the running of Apple to Steve Jobs.