In the absence of major acquisition, Apple will have $90 billion in cash by 2012

Apple Online Store“Time for four Apple (AAPL) themes and four predictions,” Stephen Rosenman writes for Seeking Alpha.

#1. Apple cash continues its steep parabolic rise: Two years ago, I predicted that Apple’s cash (cash + short/long term investments) would follow an exponential curve. This quarter, Apple’s $51 billion actually exceeded that expectation. Apple banks most of its gargantuan earnings — no dividends, buybacks, and only relatively small acquisitions (so far). I continue my prediction that Apple follows “Rosenman’s Law”: Cash piles up exponentially along a parabolic curve. Thus, in 2011, the Bank of Apple holds over $62 billion. In 2012, $90 billion fill Apple’s coffers.

#2. Apple increases its revenue per device sold: I predict next year Apple will generate over $700 of revenue per device sold.

#3. The iPad becomes Apple’s second biggest revenue driver

#4. Asia-Pacific and Japan will together make up the majority of Apple sales in 2 years

Read more in the full article here.

[Thanks to MacDailyNews Reader “iWill” for the heads up.]

41 Comments

  1. How can it both pile up exponentially AND follow a parabolic curve? I think this is just another example of a mathematically-ignorant prognosticator.

    More-generally, it’s one of my pet gripes that repeatedly we are treated to an expert in one field assuming that he is also an expert in mathematics (specifically statistics). Expert-in-this-or-that delights in telling us a fact on which he is qualified to speak followed by a statement that rightly demands input from a mathematician — input that is never sought.

  2. How can it both pile up exponentially AND follow a parabolic curve? I think this is just another example of a mathematically-ignorant prognosticator.

    More-generally, it’s one of my pet gripes that repeatedly we are treated to an expert in one field assuming that he is also an expert in mathematics (specifically statistics). Expert-in-this-or-that delights in telling us a fact on which he is qualified to speak followed by a statement that rightly demands input from a mathematician — input that is never sought.

  3. Since a parabolic curve is exponential, it’s sort of like saying a companies growth is linear and then in another sentence the author says it will be a straight line growth. Not so bad a thing to write, if you ask me

  4. Since a parabolic curve is exponential, it’s sort of like saying a companies growth is linear and then in another sentence the author says it will be a straight line growth. Not so bad a thing to write, if you ask me

  5. Well, we maybe seeing the master plan of Jobs. Save your money and buy the telco of your choice. Then master the studios with content and technology.

    Reality- who would really want to be a telco when you are the CEO of Apple. Like a master chief buy a greasy spoon. You will only get your hand dirty!

  6. Well, we maybe seeing the master plan of Jobs. Save your money and buy the telco of your choice. Then master the studios with content and technology.

    Reality- who would really want to be a telco when you are the CEO of Apple. Like a master chief buy a greasy spoon. You will only get your hand dirty!

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