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

post #81 of 323
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
post #82 of 323
Quote:
Originally Posted by chronster View Post

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.
post #83 of 323
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.
post #84 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

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
post #85 of 323
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)
post #86 of 323
Use the cash to continually fund uninterrupted research and development. Maintain technical superiority.
post #87 of 323
Quote:
Originally Posted by mdriftmeyer View Post

Buy Electronic Arts.

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.

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Proud AAPL stock owner.

 

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post #88 of 323
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.
post #89 of 323
Quote:
Originally Posted by chronster View Post

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

Think small!
post #90 of 323
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.
post #91 of 323
Quote:
Originally Posted by mdriftmeyer View Post

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.

Agree completely.
post #92 of 323
Quote:
Originally Posted by Quadra 610 View Post

A sexier, more stylish America.

The whole country looking like San Francisco. Sounds like a plan!

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?


Quote:
Originally Posted by mdriftmeyer View Post

Buy Electronic Arts.

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


Quote:
Originally Posted by chronster View Post

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

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.
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post #93 of 323
Quote:
Originally Posted by bugsnw View Post

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.

Departs? Where's Jobs going? When's he leaving?
post #94 of 323
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?

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.
post #95 of 323
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.
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post #96 of 323
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
post #97 of 323
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.
post #98 of 323
Thanks for the insight!

Quote:
Originally Posted by dofo View Post

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
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post #99 of 323
Apple could buy a bank. Come to think of it, too late -- they already are a bank.
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post #100 of 323
Quote:
Originally Posted by Dr Millmoss View Post

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.
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post #101 of 323
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?

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!
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post #102 of 323
Quote:
Originally Posted by dofo View Post

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.

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.
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post #103 of 323
Quote:
Originally Posted by sheff View Post

In the current environment they are safer then a bank.

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.
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post #104 of 323
Quote:
Originally Posted by chronster View Post

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

terrible idea. And self defeating.
post #105 of 323
Quote:
Originally Posted by reliason View Post

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

Yes. Have you?
post #106 of 323
Quote:
Originally Posted by LTMP View Post

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

Where did you come up with that nugget? Care to provide one credible cite?
post #107 of 323
Quote:
Originally Posted by rtdunham View Post

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!

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.
post #108 of 323
Quote:
Originally Posted by monstrosity View Post

I sure hope that was dripping with sarcasm!

Leader of the biggest scam since Jesus.

He invented the internet don't you know.

At least, he understood technology.

And, surely, you meant the 'internets'?
post #109 of 323
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!
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post #110 of 323
Quote:
Originally Posted by Dr Millmoss View Post

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

Apple can be a money market mutual fund. Why didn't I buy this stock at $83...
post #111 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...] :-)

You don't want to buy Sudan even if it was being sold for $1.
post #112 of 323
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.
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post #113 of 323
Quote:
Originally Posted by CU10 View Post

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

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.
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post #114 of 323
Quote:
Originally Posted by Eluard View Post

Imagine a new version of CS that you actually wanted to upgrade to!

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.
post #115 of 323
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?
post #116 of 323
MOVE ALL MANUFACTURING FROM CHINA TO AMERICA!

And Apple will be Heroes even to the Apple haters.
post #117 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!

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.
post #118 of 323
Quote:
Originally Posted by christopher126 View Post

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

Any thoughts?

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...
post #119 of 323
Quote:
Originally Posted by sippincider View Post

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

post #120 of 323
Quote:
Originally Posted by anantksundaram View Post

Just steadily plowing along, with their eyes clearly focused on the ball.

One has to wonder: Why do others have such a tough time replicating this? There is so much talent with the money out there in the tech world that could be creating more value for their investors.

Apple has taken ten years to get here. Other companies are trying to do the same in 1-3 years, so they will fail. It's leveraged one product after another starting with the iMac and Ti Powerbook, OS X, Apple Retail Stores, iTunes, iPod, iTunes Store, etc., and built up its experience, expertise, ecosystem, supply chain. As Jobs has quoted Gretzky, Apple skated to where the puck was going - mobile consumer devices. It dropped hints (opening stores, investing in Flash RAM, acquiring multi-touch, unibody enclosures) but most people still didn't see where it was going.

What a competitor needs to do is forecast where the puck will be 5-7 years from now; see what other markets/products will converge into mobile devices, and start building up the needed pieces in those places where Apple and other competitors are not, or where it can have a small but profitable business. That's what Apple did during 2000-2007, it built up media content sales, retail stores, OS/SDK tech, mobile gadget design/production through these other efforts before getting into phones/tablets/App stores.

I think Google with ads/search, OSes, maps, and web apps, Nokia with maps and supply chain, and Microsoft with Xbox and Office/enterprise are Apple's biggest threats if they can figure out where the puck is going. They all have sheer size that will give them time to withstand many assaults, and the ability to just buy any technology/service they need. Right now, it seems Google has an idea, Nokia possibly but it's fairly quiet, and Microsoft not so much (at least by what can be seen).
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