Originally Posted by Dr Millmoss
Sure, the market could be worth billions. I wouldn't even be worth a look for Apple if it wasn't.
But you're not going to convince me that Apple could spend $97b in any kind of hurry, not responsibly, and not especially if the cash hoard grows at the current, accelerating rate. That rate could take the hoard to $150b in another year. Funny how we've been having this debate ever since Apple's cash reserves were at $25b, just a few years ago. They still can't parcel out any of it to the stockholders because...?
Is AAPL in a fight with GOOG? Is MSFT of relevance?
If so then:http://www.wolframalpha.com/input/?i...rm+investments
With $97B can Apple afford dividends? Sure. Does it need to provide dividends? No.
Can AAPL responsibly spend billions in CAPEX? Define responsibly.
Are the management of VZW, AT&T, COMCAST irresponsible? No. Their business segment requires the expenditure of massive CAPEX to remain competitive.
Could AAPL need to spend billions of CAPEX to "rationalize the television industry" in order to capture billions of revenue in return? Given that the major last mile players and the major content producers spend huge amounts of money then the answer is possibly, perhaps even likely.
Would have been responsible for AAPL to spend $20B out of $25B in an attempt to rationalize the TV industry? Hell no.
Is a $20B bet out of $150B responsible? It's a huge gamble but not one that is excessive in comparison to either current resources or what might be gained. Google bid $4.6B on spectrum without the intention to actually win.