Originally Posted by asdasd
Firstly they are not luxury items. That term is massively devalued. An entry level iPad is well within the reach of a McWorker - depending on the rest of his or her obligations, of course.
And the reason to lower the price would be to grab more market share.
Except for Samsung. Its true that most Android manufacturers will bite the dust but the few that survive will be very big competition for Apple - as we see now. Samsung etc.
What debt - Google's has $36.7 billion in cash and equivalents on hand.
Google has a total debts to assets ratio of 5.79:1 and a total debt to equity ratio of 7.29: 1.
No, they don't have $36.7 billion in cash and equivalents on hand. And that is before the $12.5 Billion + for MMI which carries a lot of extraneous debt along.
MMI brings in a $12.5 Billion charge which will actually be much higher once they process the entire retirement structure, etc., and negative profit margins.
Now on top of the current issues with total debt to equity (TDE) and total debt to assets (TDA), from Page 39:http://investor.google.com/earnings.html
More specifically: http://investor.google.com/pdf/20111231_google_10K.pdf
Page 39-44 discuss their drawing of unsecured notes and much more to build up their assets, hence they don't have the capital you claim without extended debt--they are borrowing against stock issuances to build up their cash base.
Apple has ZERO DEBT. They aren't issuing a thing because they are building nothing but pure profit and reinvestments of said profits, quarter over quarter.
Their TDE and TDA are N/A.
A real interesting statement by Google:
As of December 31, 2011, $21.2 billion of the $44.6 billion of cash, cash equivalents, and marketable securities was held by our foreign subsidiaries. If these funds are needed for our operations in the U.S., we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds
outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.
I look forward to that $12.5 Billion + investment domestically requiring them to absorb a taxation to cover or another series of unsecured senior notes to help offset the costs and extend more debt to the long-term valuation of the Corporation.
I will say it again, APPLE HAS NO DEBT.
Neither Microsoft, Google, IBM, Oracle, Computer Associates, SAP, on and on and on can make that claim.
ONE COMPANY, ZERO DEBT, 100 BILLION and climing in Assets.
It's only going to grow.