Apple’s cash mountain keeps piling up, now stands at $206,000,000,000

“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.


    1. 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.

    1. 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.

  1. 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.

    1. 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.

  2. $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.

    1. 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.

  3. 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.

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