“Apple has a good problem,” Matt Krantz reports for USA Today. “It can’t get rid of its cash fast enough.”
“The digital gadget maker’s cash and investments during the quarter jumped to $206 billion — a staggering 33% increase from the same period a year ago,” Krantz reports. That’s “enough cash to give every American $646 apiece – which is remarkably close to the retail price of an iPhone.”
“Apple’s cash continues to mount – even though it keeps trying to get rid of it. The company returned $17 billion to investors during the quarter in the form of stock buybacks and dividends,” Krantz reports. “Apple has now paid out $143 billion of the $200 billion it said it would give to investors.”
Read more in the full article here.
MacDailyNews Take: Apple currently has more cash on hand than Intel is worth – with $42 billion left over (enough to buy Sony and still get back $9 billion in change).
Bonus: In the full article there’s even a bit of poppycock tacked on the end about Apple’s other products not performing like iPhones, as if any other product from any other company on earth ever has.
At this rate, their cash hoard will reach $1T before their market cap does.
““Apple’s cash continues to mount – even though it keeps trying to get rid of it.” Uh Apple, ever hear the word ‘Politician’?!?
what is their bond debt now vs cash here and overseas?
Why the down vote? That is a perfectly legitimate question since Apple now carries debt.
Joe, a quick DDG search provides the answer: $54.42B
So the net cash and securities is ~$152B. But I suspect that Apple earns more from its cash and securities than it pays in debt service. Plus, the debt is a way to “transfer” assets into the U.S. for dividend payments and share buyback without incurring the tax burden of repatriation of international profits. That is not a perfect solution, but it is better than the alternative.
So is Apple in the red or black if you disregard funds not in the U.S.? I don’t expect the current total to be adjusted for repatriation.
Gaagle Me With A Spoon. Read between the lines .!.. Wallshysters. Pathetic bunch of delusional scumbags.
I think they should invest large sums into acquisitions that make sense and R&D.
Cloud services. Wall Street says Amazon’s, Alphabet’s and Microsoft’s cloud services have unlimited growth potential which gives all three companies a bright future. None of them seem to conflict because this cloud services market is so huge. The only time cloud service growth will become limited is when Apple gets into it. Apple would become the company who wouldn’t stand a chance because it’s too late into the game. Apple will still be doomed.
You’re right, why keep paying Amazon to host iCloud?
Dividend increase.
That would probably just require Apple to sell more bonds to fund it.
Fair enough. But I’m just pandering to my own petty greed. 😉🤑
I think any copy would be happy to sell 5 million of anything.
I would welcome Apple to come in and redo my data center. It wouldn’t cost them much.
“Because they have a lot of money and I don’t, I think they should give me some.” lol
How about simply lowering their profit margin on their overpriced hardware? I LOVE Apple products BUT their prices are too high. If you want more memory in your new iMac you HAVE to buy Apple’s exorbitantly priced RAM.
Lies & more lies…
I just put 4gig of memory in a 7.5 year old iMac 24″ for $21.62. Running El Capitan. Ram is cheap. I never buy ram from Apple. Stop spreading FUD Troll .!..
Put an SSD in it and you’ll really see what it can do.
He said NEW iMac. The ram modules are now soldered so you must make your choice at purchase, cannot upgrade later.
Upgrade a new 21.5″ iMac from 8GB to 16GB costs $200. Looks like you can only upgrade memory yourself on the 27″ model.
But I don’t think current iMacs are user upgrade-able are they?
I’m tracking that the $206B in cash and investments equates to $36/share, just over 30% of the current share price. Anyone tracking something different?
Wall Street equates the reserve to be of zero value. End of story.
Apple already burned $140 billion to gain $50 billion more in debt. You might say that’s almost $200 billion down the drain with NOTHING to show for it. A big EPS means nothing. Apple’s EPS is 8.66. Microsoft EPS is 1.6 or so. Microsoft’s share price went up 10%. Apple’s share price went up 1%. How’s that kick in the groin feel.
$195BB of that is overseas. Apple are using all their US cash for dividends and buybacks. So unless they are planning to borrow more money they will not be able to increase the dividend.
FWIW – Apple have put in nearly $140BB back into the stock market liquidity in the past few years. That at least should earn some more love.
If Apple buys back its own stock doesn’t that remove those shares from ‘shares outstanding’? Meaning less shares available to trade, lowered possible future transaction numbers, and thus LESS ‘liquidity’? If Apple is spending money trading stocks of other companies, I can agree with ‘creating more liquidity in the stock market’ due to overall increased trade volume in the market.
With that money, fix Pages, Numbers and Keynote. Make it top class. Buy Duck Duck Go and kick the crap out of Google for good. Then, tidy up the new Notes 4.0 app by adding the following:
What the new Notes 4.0 app needs:
Tags, and then be able to sort via tags. Jus like in Finder for Pages and Numbers. Ultimately, you want the tags to be sync’d with iOS, iCloud and El Capitan
When adding a note, besides “add to Note” you should have an option to add to ‘Folder”. I set up lots of folders based off the main subject or topic.
Share notes with edit capability
Add “Date and Time” to a note so if I take note a month ago I know when I took the original note and you can have the “edit” time still at the top.
Some tie in to the Reminders app. Like, if I add a date/time reminder to a note. I can use the share sheet but it would be nice if they two were linked for notifications.
What about iTunes? You would think with that cash hoard they could afford a couple interns to revamp that thing.
That cash hoard is practically useless to Apple and shareholders. Most of it is overseas and practically untouchable. Apple would refuse to take a tax bite to use it unless desperate and Apple is a long way from being desperate.