Three fairly radical ideas for Apple’s $100 billion cash hoard

“When Apple reported its monster Q1 results on Tuesday, the company revealed that its cash, short-term investments, and long-term investments totaled $97.5 billion,” Adam Levine-Weinberg writes for Seeking Alpha.

“This disclosure triggered another round of speculation about what the company should do with all that excess cash (Apple carries no debt),” Levine-Weinberg writes. “Management was forced to deal with various iterations of the question: ‘When and how might you return cash to shareholders?’ on the earnings conference call. For the most part, analysts have predicted a relatively modest dividend of 2-3%, to be initiated sometime this year.”

Levine-Weinberg writes, “While a modest dividend or share buyback are possible, Apple executives may have other ideas. The following are three fairly radical ideas for what Apple could do with excess cash.”

• Initiate a Massive Quarterly Dividend
• Become completely carbon neutral
• Start a Private Equity Fund

Read more in the full article here.

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

57 Comments

        1. Retail worker, I see. You do realize that you and your coworkers account for less than a quarter of the money apple generates, right?

          PS- enjoy that $500 discount on Macs that only Apple employees can now get!

          1. Even corporate employees don’t get paid as much as their counterparts at other companies. I’m not saying give it all away, but why are executives the only ones who should get a stock option or bonus? The former by the way costs the company $0. I rather have that than a $500 discount on a machine once every three years.

            1. Oh, and if you actually wanted stock options, you could have said so.

              Instead you’re crying about wanting a slice of the cash reserves. Far less convincing.

            2. I don’t actually sell anything Captain Condescending. You do realize that there is a small army of people that actually have to make these places run right? We aren’t all just college kids on the sales floor.

    1. @XS,

      Speculation doesn’t interfere with the decisions of the management team. There’s nothing wrong with “This is what I’d like to see…” or “This is what I think Apple should do…” or “This is what I think Apple will do…”.

  1. Or they can buy Sony.
    1) same culture: Both pay great attention to design. In fact, it is a known fact that Sony had great influence on Jobs.
    2) same business model: Both sell good products at high margin.
    3) good game base: Apple will have new portable games imported to iPod and iPhones. Sony can use Siri in their Playstation games. Think about using voice control in Call for Duty games.
    4) a good media base: Apple will then have a large media base. If they do not like it, they can sell the media business to Disney.

  2. This is not news. This is an opinion piece. Posting countless stories about what apple should do with its money or who it should buy (Kodak, Sony, Nintendo, adobe). It is so tired.

    Macdailynews-
    Where Mac news comes first, unless there is no news, then we’ll petal hit-whore crap that is not news because people like to comment on worthless and irrelevant minutia.

  3. Q: ” but why are executives the only ones who should get a stock option or bonus?”

    A: they are. How? By “[giving] some back to the employees who made it possible.” You know, the people that actually envision, create and market the stuff you shill.

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