Steve Jobs says Apple must 'think big' with $40 billion in cash - Page 3

Think big: Market a version of OSX for system builders and push Windows out of the market!

FOR FUCKS SAKES, LET US RUN OSX ON SOMETHING OTHER THAN AN APPLE COMPUTER

That's not thinking big. That's thinking small. Look around at all the high valued PC vendors. Can you name them?

Outside of HP and Toshiba who have R&D for other product segments all of the rest are feeding on scraps.

This might not be thinking big, but I would like to see Apple get into the online backup business like Mozy or Carbonite. I had Mozy and had troubles with it so having it run by Apple and built into the OS with a "set it and forget it" interface would be great.

just under $40bn cash, cash equivalent, and long-term marketable securities. see the Dec 2009 10Q

cash and cash equivalent 7.6 bn
short-term marketable securities 17 bn (treasury bill)
long-term marketable securities 15 bn (treasury bond)


http://phx.corporate-ir.net/External...xUeXBlPTM=&t=1

Apple does great with its focus on the consumer. spend some money and develop an enterprise solution, incorporating communication (business iPhone and iPad), video, computing, servers, and software. take down M$ biggest strategic advantage (cause it ain't the zune,that's for sure)

Use the cash to continually fund uninterrupted research and development. Maintain technical superiority.

Maybe... Apple's learning the power of game offerings with the success of the App Store, perhaps they'll up the ante and really dedicate some talent to internal game development, or simply act as a financial backer to the hottest devs and upcoming talent. This would be a great way to seed thousands of hungry, new companies itching to make a mark in the App Store.

Apple should buy GOLD, they need protection from the ever devaluing American Peso.

They need a store of wealth and T-bonds just dont cut the mustard anymore, just ask china.

Think small!

Apple has been incredibly successful by controlling the entire widget. Many customers have been complaining loudly about their experiences with AT&T. You can't buy an iPhone without it.

Mobile seems to be the word of the day. You can't be mobile without access to the internet somehow.

We might see a big move before Jobs departs. I don't think he'd want to leave one of the largest piggy banks ever created at the hands of lesser mortals.

Agree completely.

Great! If this scenario would imitate Apple's current standings then Steve Jobs as president means 91% of the upper-class gree with him, only 10% of the total population, less than 1% of businesses are on his side, none of the lower-classes would "get him", TEKTUD would be demanding he wasn't a US citizen while claiming that "Apple taxes" are too high, and AngusYoung would be burning the flag and destroying Jobs effigy on TV saying it's his right.

Did I miss anything?



Or they could buy Bungie.... oh wait...



This would irrevocably hurt Apple's Mac market. The market where they actually make a profit on PC HW where others can't and the market where MS has to sell 12(?) OEM licenses to make the same profit?

The only way I could have seen this working is by buying Sun and essentially rebuilding a NExT/Sparc Workstation hybrid that uses base version of Mac OS X that is geared specifically for businesses, but backwards compatible with most Mac apps, starting with servers and high-end server services that eventually trickle down into utilitarian black/dark-gray pizza box desktops and towers, that are only for OEMs. A completely separate business offshoot that in no way has the word Mac in it and does not directly, at first, work to make the basic cheap Windows desktops found in offices around the world. Though even that could be multi-billion dollar that could hurt Apple in many ways.

Departs? Where's Jobs going? When's he leaving?

I’d like to see Apple buy a newspaper or magazine publisher and figure out how to make print work across multiple platforms. They could buy Gannett for $4B or the New York Times for $2B, spin off the smaller papers and the TV/cable properties, and turn USA Today or the Times into their own little science project.

First off - avon CEO's joke is not funny to me for some reason...

But as far as having loads of cash - is awesome. Apple should continue spending it on the A4 chips, work closer with intel and nvidia to deliver priority chips for apple (like it was done for AIR). How about iWork Mobile that would work like Google Docs or better for those who have Mobile Me. Mobile ads and GPS/maps are also good ideas. Maybe even deliver a personal finance suite that would include investment and tax planning functions that would be better then what is offered by Intuit.

Also building a few more apple stores in US and outside would not be a bad idea.

However apple needs to be careful not to overstretch itself. Going after google in search, for example, would be a huge waste of cash.

Thought I would clarify a few things being said on this meeting - as I was there, I had the advantage of seeing it first hand with the proper perspective.

1. Andrea Jung did not joke about Tipper being on the board - it was a comment from a shareholder who was asking a questions. It did get a good laugh though. Her point was why are there not more women on the board or on the executive team

2. $40B in cash and thinking big. Jobs point was that he wanted to have the cash on hand so if a big opportunity came up, apple would be in position to take action - there was no suggestion this would be in the form of aquiring another compnay. His point was it allows Apple to take big risks on things and if it does not work, it does not put the company at risk.

3. Someone also asked when Apple would go to verizon. Job's response was that he could not comment on future plans then he said "but" then he stopped himself, paused for 3 or 4 seconds and then continued with "I better leave it at that." Although nothing was said, it was clear by his pause, that he was clearly thinking about adding something else to his comments, but held back. As to what this is, who knows, maybe it was a "wait until summer and see what we do" or maybe it was "we are very happy with our AT&T partnership." I doubt it's the later, because they have said things like that publicly before - he was thinking os saying something that was not previously communicated by Apple - In my opinion.

dofo

How about really, really.....REALLY big?

They build a free ubiquitous cellular/wireless network that covers all major cities with broadband....only accessed via Apple's products.

Consumers get online free through Apple's portals and Apple in one strike does an end-run past Google and the carriers----controlling all the advertising. .99 for a song... .49 cents for a cel call.... ...1.49 for a TV show.... $9.99 for a movie, etc. etc.

I think Apple would love to operate without the need for a Carrier. They want total control.

Don't be a tedious jerk and smash the particulars here...I'm writing this half drunk, ok? Just look at the big picture.

Apple wants CONTROL. If they have the network...that's the final and ultimate component.

Thanks for the insight!

Apple could buy a bank. Come to think of it, too late -- they already are a bank.

In the current environment they are safer then a bank.

Buy elgato, and integrate a tuner into AppleTV. If I could watch/record over-the-air digital and clear QAM cable, *and* download/buy movies from Apple, and do it with a nice Apple interface, I'd be in all the way!

I doubt it. Try to imagine what would happen if Apple started showing any losses, not to mention, losses large enough to require that sort of cash backstop. What are they going to do, bet it all at the track? This is where I get the distinct impression that many people don't know what capital is for. It isn't for socking away in low-return investments just in case. It isn't for putting on the roulette wheel. It's for reinvesting in growth. So how is Apple going to reinvest anywhere close to $40 billion in growth for their investors? This is the question to which stockholder have never gotten any kind of straight answer. This one is just as evasive.

I'm not so sure of that anymore. Apple has that money tied up in a variety of securities. If they bring them any sort of return, then they can't be completely safe.

terrible idea. And self defeating.

Yes. Have you?

Actually if Apple run the country the first thing they need to do is cut off California and let it float out into the ocean and sink. I believe the state has a 41.8 billion dollar budget deficit.

Where did you come up with that nugget? Care to provide one credible cite?

They are doing the right thing with it: Spend it, e.g., on server farms, semiconductor research and manufacturing, locking-in supplier agreements with upfront payments, and such.

Seems like a good strategy to me. There's no hurry for them to achieve anything.

At least, he understood technology.

And, surely, you meant the 'internets'?

I'd like to see them make a big investment in the next generation file system. Since ZFS fell through there has been a huge hole in the image of what OSX will be like in two or three years. Let us hear that they are going full steam ahead on that front!

I also still have a fondness for them owning Adobe. The problems with Adobe are really at the upper management level. An Apple owned Adobe could be a great great company. Imagine a new version of CS that you actually wanted to upgrade to!

Apple can be a money market mutual fund. Why didn't I buy this stock at $83...

You don't want to buy Sudan even if it was being sold for $1.

I don't think they would want to buy into carrier networks. It is a whole new area of expertise, requires a different kind of management and would be very difficult to integrate into their current set-up. Apple's tremendous growth over the last decade has been organic - core competencies expanding outwards and upwards - a big leap sideways would break that mould and be a mistake in my view.

Aggressive expansion into games would work - iPhone, iPad, ATV plus the data centre puts the logistics in place, add in a games division and there is a lot of synergy - a 360˚ halo.

However, I think Apple are perfectly positioned to make a big move into enterprise. Not at the mega corporate level which is wedded to MS, but at the level of small business. They could offer a complete integrated system - servers, terminals, iPhone and iPad (even a POS system if there is a retail aspect) all synched to their work suite. A beefed up iWork, a bought in accounting software company and so on, all working seamlessly together. A big part of the Apple ethos, as re-iterated by Tim Cook the other day, is not just doing something for the sake of chasing profit, but to actually produce something that is better than currently exists. If they put their mind to it, they could produce a fantastic solution for small business, free of MS's onerous licensing and maintenance headaches, where the IT just fades into the background and the business can just get on with their business.

Oh, and laser-armed robotic sharks obviously, tirelessly working to keep our oceans Flash-free for ever.

A money market fund would have returned more over the last two years.

The reason why you didn't invest at $83 is the reason why it dropped to $83.

Oh tell me about it. I recently purposely downgraded to CS3, as the awful UI and 'bugs' in Adobes latest atrocities were irritating the hell outta me.

Design a 30" iMac and a 30" monitor that look exactly like each other. B/c the 30" is wider they could get the guts in a slimmer 'chin.' The 30" monitor based on the 27" would be a pretty match.

Secondly, make the 13" MBA with a new one button glass track pad, add ram and the 'raccoon' screen trim. And make a 15' and 17" for a complete laptop line w/o superdrives and SSD's only

And lastly make a 50" TV with AppleTV inside it able to use a BT keyboard/with a side trackpad, TV version of Safari, and an TV App store a la the iPhone App store!

A TV with only one cable coming out the back (pwr) Only Apple could do this!

Any thoughts?

MOVE ALL MANUFACTURING FROM CHINA TO AMERICA!

And Apple will be Heroes even to the Apple haters.

Not at all. Cook is saying they don't want to acquire big companies. Steve is saying that they need to do big, bold projects. That makes a lot of sense. Those big projects don't have any competition and create a large barrier to entry for potential competitors. It turns out this also works in existing markets if that market is pretty stagnant and you overshoot them significantly with your initial offering. I would say both the iPod and the iPhone took that approach. There really are not enough companies doing this. Not to mention that this is both good for investors and makes the world a better place.

Yes. What would Apple do with the remaining $39.799 billion?

Although I wouldn't put it past MS to blow $40 billion on just such a hardware project...