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Steve Jobs says Apple must 'think big' with $40 billion in cash - Page 2

post #41 of 323
Early adopter refunds anyone?
post #42 of 323
Quote:
Originally Posted by Rot'nApple View Post

Steve Jobs:

Jobs reportedly said Apple must "think big"

Huh, seems like opposite ends of the spectrum!

"Think big" doesn't necessarily equate with either financials or size, that seem to cloud most people's judgements.

I'd wager he's referring to big ideas ... creating new futures and the products that will be part of those. Look at the iPad for example ... it's a new, simple way of accessing, well, pretty much anything. And that's why it's going to succeed in spades, if only because we don't even see the long-term vision yet of Apple with regards to this new device.

Steve's not in it for the money, anymore. That's long, long gone.

Ideas and creativity are/can be so much bigger than money.

Quote:
Originally Posted by reliason View Post

But let me ask you this, While I can find Luxembourg on a Globe, can you Find Nebraska?

Yes, I can in fact. Then again, I'm Canadian (with a degree in Geography too). Our education system isn't quite as broken.
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post #43 of 323
Quote:
Originally Posted by macdanboy View Post

Steve and Apple management, would you take a couple of years off and run the country?? Please

Does that include iGore?
No thank you.
post #44 of 323
Quote:
Originally Posted by melgross View Post

. I had thought, several years ago, that buying Sun, when it was still doing well, would have given them the credibility in the back offices they don't have, and ownership of several technologies that they were using, or thinking of using, but that didn't happen.

... yeah, but Steve's [best] friend bought it instead!

*
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post #45 of 323
Screw Fort Knox I'm gonna work up a Apple Heist. Just gotta find where they keep all that cash.. Probably under Steve's mattress. I may need some more manpower any takers??
post #46 of 323
Quote:
Originally Posted by macdanboy View Post

Steve and Apple management, would you take a couple of years off and run the country?? Please

There's an app for that.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

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post #47 of 323
Quote:
Originally Posted by Rot'nApple View Post

Apple's Tim Cook (from AppleInsider Post a few days back):

Keeping it simple

One focus for Apple, Cook revealed, is to keep matters simple. The Cupertino, Calif., company hasn't been interested in doing large acquisitions because of value and compatibility issues.

"We've always been about making the best product, not having the highest market share or the highest revenue," he said. "And so acquiring a company so our revenue gets larger isn't something that drives us."

The same philosophy applies to Apple's product line. Cook said the company doesn't want to overextend itself, and noted that the company's entire line of products could fit on one table. The only other high-revenue, publicly traded companies that could likely say that would be oil companies, he said.

Most companies, he said, simply aim to get bigger as they become more successful, but Apple has intentionally avoided that approach.

"The management team at Apple would never let that happen," Cook said. "That's not what we're about."

Steve Jobs:

Jobs reportedly said Apple must "think big"

Huh, seems like opposite ends of the spectrum!

I think Jobs' "thinking big" is to see the whole picture, not to make silly investments or short-term decisions based on the quarter to quarter numbers.

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post #48 of 323
Quote:
Originally Posted by JagerHitsULater View Post

Screw Fort Knox I'm gonna work up a Apple Heist. Just gotta find where they keep all that cash.. Probably under Steve's mattress. I may need some more manpower any takers??

AIR, Apple set up an investment company in Nevada (to avoid high taxes in California).

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post #49 of 323
Apple should buy Dell, shut it down, and return Dells value to it's shareholders ;-)
post #50 of 323
Why dont spend some of those 40 billion in giving apple costumers a laptop with the latest processors technology like Intel i3 i5-i7 and a minimum of 512 mb video card
PLEASE!!!
post #51 of 323
SJ says Apple need to think BIG? So does that mean no more "Hobbies" but instead deliver real ful fledged products, not betas. An AppleTV with a real TV screen perhaps. Scrap the old AYV completely and really deliver something and while your at it gives us a refund for that hot lemon jukebox disguised as something really uselful?
Come on Steve, Apple is now an electronics company now, right? You've forgone on computers the last 3 years. Where's our i5 laptops? Deliver the goods. Compete against SONY too just not Microsoft and Amazon.
post #52 of 323
If Apple's goal is to focus on quality and not marketshare then that's where their spending will go.

This is already noticeable with the iPad getting IPS screens and selling for under $500.

The laptop line should get the same treatment. Buying into exclusive deals with high-end display manufacturers. Buying up companies like Fingerworks and PA Semi for intellectual property and assets.

They've bought some of their biggest products. itunes used to be SoundJam (which I remember using on OS 9), Final Cut Pro was bought, Shake bought, Logic bought, OS X bought from Next.

Their pro apps could use some attention and they'd do well to buy up innovative smaller companies like The Foundry. There's also the little companies that make useful products like Transmit for FTP, Omni apps developers, Quicksilver maybe, Coda/Textmate, Pixelmator to rival MS Paint and bundled, even Skype.

All these refinements go into giving their products an edge over competing products.

Of course, the mindset can change as time goes on. Apple doesn't do mass-market because they have highly priced products. There will come a time very soon where something like the iPad will house a dual 2GHz CPU or more and be priced at $500 or less.

That's when things start to change dramatically because people stop buying the uber-expensive machines they don't need. The competition won't be able to match Apple's quality so they have the edge.

Thinking big really has to be outside of the space they are in right now. Energy is one area that's going to be huge and very important to all gadgets - battery technology is one thing. If Apple can make proprietary batteries that last 10-100x longer than they do now, they will make a killing selling them to their rivals. Wireless power transmission is another area.
post #53 of 323
Quote:
Originally Posted by reliason View Post

Have you dealt with many C level people (CEO, CIO, etc)?

They all believe that they have the 'vision' and the ability to make something workable and want to leave their mark on the company.

Jobs has this trait in spades, but he is also focused enough to avoid some of the pitfalls [Dells PDAs and/or Phone? Gateway Computers 'Country Stores'? etc.]

I never understood this either until I worked for a company whom I won't mention in name. I could not believe how utterly stupid the morons who rose to the top were. These people were visionless, talentless, and the products stunk because of it.
I tried to make them see sense, but it was like banging my head against a brick wall. They made every textbook mistake at every given opportunity.

I left the company to wallow in it's own excrement.

Now it makes perfect sense as to how so many companies fail to produce quality goods.
post #54 of 323
Quote:
Originally Posted by reliason View Post

So, Steve, what are you going to do with that $40 Billion war chest that Apple has...

I'm thinking of buying a small developing nation and making myself god emperor....

Something like the Sudan, Luxembourg or Slovinia... [three random countires with a GDP LESS than 40 Billion...] :-)

Maybe you meant Slovenia
post #55 of 323
AAPL could use a small portion of the $40B to build relationships with Netflix, Amazon Video, Sirius-XM, Hulu, etc. and put all those capabilities into Apple TV so it can graduate from Hobby to Money-Maker. If not, Wal-Mart with its new acquisition, Vudu, is going to eat a hole into iTunes movie sales and rentals and then have Apple TV for dessert.

Quote:
Originally Posted by macshark View Post

Ideas for Apple acquisitions:

1. Buy Netflix. Netflix is worth less than $3.5B and is a profitable company. This is the way to turn AppleTV from a hobby to an industry leading product.

2. Get into content distribution business by buying one or more content distribution companies.

3. Buy Adobe, though Adobe is nearly worth $18B and has a very high P/E ratio. This would settle any problems with flash and mobile MacOS devices once and for all. Apple ends up with a set of duplicate products on the CS side, but that can be fixed over time...

4. Buy Palm to consolidate the smart phone market. Palm is worth pocket change ($1B)

5. Buy Disney? Or another large media corporation like Liberty?
post #56 of 323
Quote:
Originally Posted by AppleInsider View Post

...In addition, Bloomberg reported that Jobs said Apple is holding on to its cash for "big, bold" risks. Apple revealed in its first quarter 2010 investor conference call that it had accrued $39.8 billion in cash by the end of the December quarter...

Bloomberg (link below) says, " The company had about $25 billion in cash and short-term investments as of December."

Can anyone reconcile those two reports?

http://www.businessweek.com/news/201...-update1-.html
post #57 of 323
Quote:
Originally Posted by Rot'nApple View Post

Apple's Tim Cook (from AppleInsider Post a few days back):

Keeping it simple

One focus for Apple, Cook revealed, is to keep matters simple. The Cupertino, Calif., company hasn't been interested in doing large acquisitions because of value and compatibility issues.

"We've always been about making the best product, not having the highest market share or the highest revenue," he said. "And so acquiring a company so our revenue gets larger isn't something that drives us."

The same philosophy applies to Apple's product line. Cook said the company doesn't want to overextend itself, and noted that the company's entire line of products could fit on one table. The only other high-revenue, publicly traded companies that could likely say that would be oil companies, he said.

Most companies, he said, simply aim to get bigger as they become more successful, but Apple has intentionally avoided that approach.

"The management team at Apple would never let that happen," Cook said. "That's not what we're about."

Steve Jobs:

Jobs reportedly said Apple must "think big"

Huh, seems like opposite ends of the spectrum!

There is a difference between big and wide .. chuckle

Basically they are thinking of big products that can sell 10s and 100s of millions. And reject good products (ideas) but less than a few millions. Ax example that has been stated multiple times is of Apple TV. Currently it is quoted as a hobby because it is <10m. But Apple will keep investing because they believe it can be much bigger later.
post #58 of 323
Quote:
Originally Posted by anantksundaram View Post

All unwise, unnecessary, or unfocused.

1. There is **nothing** that Netflix brings to the table that Apple couldn't replicate today, if it wanted to.

2. Attempts to marry content by hardware/software companies have invariably ended in disaster (e.g., Sony). Moreover, content is a slow-growth business.

3. See (1) above.

4. See (1) above. Also, could raise antitrust eyebrows.

5. See (2) above.

ok. but so you don't sound like a Republican nay-sayer, what do you propose? Let's hear something positive. Or perhaps your position is they should do nothing, which is ok but not stated in your reply above. You always have good ideas here. Share some!
post #59 of 323
Quote:
Originally Posted by JeffDM View Post

When you buy a company (or hypothetically, a country), you don't buy it for the amount they took in last year, you generally buy it for many times that. For example, Apple's market capitalization is roughly four times last year's revenue.

Technically, you buy it for a multiple of earnings, rather than revenue.
Last I checked, Apple is trading at about 23X earnings.

Non publicly traded companies typically sell for 5 to 6 times earnings.
post #60 of 323
Not too long ago, the media said Apple was financially unstable (which was never true). You can google "beleaguered Apple Computer Corp" and mouth breathing idiots were actually saying Apple had no future.

"Apple's iPod spurs mixed reactions -- 2001"
http://news.cnet.com/Apples-iPod-spu..._3-274821.html

Et cetera
post #61 of 323
Apple is going to make robotic sharks - robotic sharks with frick'n laser beams on their head.
post #62 of 323
Quote:
Originally Posted by elroth View Post

Apple already spends a lot on monitoring its environmental impact. They are the only company I've heard of that figures out its carbon footprint by including its manufacturing and its office and retail operations.

These latest shareholder resolutions were not well thought out, and didn't seem positive to me. I usually vote for environmentally-conscious shareholder resolutions, but I voted against these.

What was not well thought out about them?

I certainly see nothing wrong with "analyze its impact on the environment". Apple has lots of cash to spend, and that would be a great way to spend some of it. I'm disappointed they chose not to.
post #63 of 323
Buy the NFL. Kick DirecTV out. Build subscription TV from there.
post #64 of 323
Don't look for Apple making any large mulit-billon $ acquisitions. Historically that's not their style. Sub-billion is though.

It'll be interesting to see what they have cooking by his statements. Sounds like some radical new stuff coming down.
post #65 of 323
Quote:
Originally Posted by macdanboy View Post

Steve and Apple management, would you take a couple of years off and run the country?? Please

I'd be for that.. as long as Al Gore weren't involved in any way, shape or form. The guy's a huckster, a fraud, and a hypocrite.
post #66 of 323
.

"Think Big"

Hell Yea, what Apple and Steve have been doing from Day One

Or try it this way ...

Change The World

Is THAT "big" enough for you ?

And how we'll do that ?

No problem - Karma and Fate will show us The Way, The Path

When the time comes - we'll know what to do - will be evident

Is simple as can be

Ain't Life Great when you follow The Tao ;-)


BC

.
post #67 of 323
Quote:
Originally Posted by Big KC View Post

I'd be for that.. as long as Al Gore weren't involved in any way, shape or form. The guy's a huckster, a fraud, and a hypocrite.

I'd say he's an intelligent Nobel Prize winner who's doing very good work. :-)

It would be great to have him back in the White House.
post #68 of 323
Quote:
Originally Posted by walshbj View Post

Buy the NFL. Kick DirecTV out. Build subscription TV from there.

Nice try. You obviously have no idea how much the NFL is worth. $40b would merely be a down payment, and leave the company broke.
post #69 of 323
Quote:
Originally Posted by itistoday View Post

I'd say he's an intelligent Nobel Prize winner who's doing very good work. :-)

It would be great to have him back in the White House.

I sure hope that was dripping with sarcasm!

Leader of the biggest scam since Jesus.

He invented the internet don't you know.
post #70 of 323
I knew it!! They're going to purchase Yahoo!
post #71 of 323
Quote:
Originally Posted by walshbj View Post

Buy the NFL. Kick DirecTV out. Build subscription TV from there.

That would actually work.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #72 of 323
Quote:
Originally Posted by DaveyJJ View Post

"Think big" doesn't necessarily equate with either financials or size, that seem to cloud most people's judgements.

you may well be right, the thing is that "thinking big" was juxtaposed with their liquid assets, whether that figure be $25B or $40B. That doesn't lend itself to thinking about sub-billion-dollar projects.

Quote:
Originally Posted by LTMP View Post

Technically, you buy it for a multiple of earnings, rather than revenue.
Last I checked, Apple is trading at about 23X earnings.

Non publicly traded companies typically sell for 5 to 6 times earnings.

You're right, I knew something was off, I wasn't sure.
post #73 of 323
Quote:
Originally Posted by Tods View Post

Luckily only a small minority of shareholders want a huge dividend, but it bothers me that anybody makes noise about it. Which would deliver more long-term profit: you or I investing our tiny share of that 40 billion in something other than Apple, or letting Apple invest it in itself?

It's not the small shareholders like you or I that matter though, it's people like Fidelity and Barclays who hold about 5% each of Apple, and hence of the cash pile, they own $2bn each, that matter.

That said, it's highly unlikely they would object to whatever Steve Jobs wants to do given his remarkable track record. The mind boggles at what he might do with a bold $40bn move!
post #74 of 323
Quote:
Originally Posted by macshark View Post

4. Buy Palm to consolidate the smart phone market. Palm is worth pocket change ($1B)

Why buy a company that has nothing to offer? Palm is the 90s Apple of the 2010s except they have no future.

Apple should buy Comcast or AT&T and pump 1GBps fiber to my house.
post #75 of 323
Quote:
Originally Posted by Big KC View Post

Nice try. You obviously have no idea how much the NFL is worth. $40b would merely be a down payment, and leave the company broke.

Actually I was kidding, and I have a pretty good idea what the league is worth as well as each team.

I did write a while ago that I thought Apple should have at least been looking at bidding for tv rights.

http://seekingalpha.com/article/1575...on-an-nfl-deal
post #76 of 323
Well, I think Apple has perhaps started its "Think Big" campaign with its huge data center in North Carolina. It's been perceived to be a data center for the iTunes/App Store, and perhaps that could be true. But could they be making a move to be a full fledged wireless data provider? They don't need to be a telco - they don't need to be a cable operator - they just need to provide a data pipe. They have no legacy to hold them back from implementing the next gen network that their devices will demand.

The single biggest threat to Apple's growth and innovation is going to be their dependence on their carrier "partners" getting their network up to snuff. Of course, the way AT&T goes on, it would seem that $40 billion is not enough to do the job. But, hell, if Apple was making the money from the devices as well as all the subscription revenue, they may have the cash flow to do the job.

I'd like to see it.

- edit - If I'm not mistaken, Sprint is just under 10B market cap. Buy them and their network and own the whole bag of beans.

-Blurp
post #77 of 323
Quote:
Originally Posted by rtdunham View Post

Bloomberg (link below) says, " The company had about $25 billion in cash and short-term investments as of December."

Can anyone reconcile those two reports?

http://www.businessweek.com/news/201...-update1-.html

Going from their last 10-Q, The difference looks like mostly long-term marketable securities ($15B), plus a few other things. Cash & cash equivalents and short-term marketable securities total $24.7B.
post #78 of 323
Quote:
Originally Posted by macdanboy View Post

Steve and Apple management, would you take a couple of years off and run the country?? Please

A sexier, more stylish America.

The whole country looking like San Francisco. Sounds like a plan!
post #79 of 323
Quote:
Originally Posted by macdanboy View Post

Steve and Apple management, would you take a couple of years off and run the country?? Please

With Apple's growing control obsession? I'd rather have Bush back in office.

Back on topic, $40 billion isn't exactly chump change! Whatever you do Apple, don't get delusional and think you're gonna buy Yahoo or something.
post #80 of 323
Buy Electronic Arts.
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