So where are the posters that want Apple to give all their cash holdings back to the shareholders with a huge tax fee thus reducing the stock value doubly with only a little, short-term benefit to the shareholder, instead of investing in longterm component acquisitions that can put them a step ahead of their competitors as needed while still being able to turn out a healthy profit? I feel bad for the people that have no sense of savings.
Uh... You realize that they have about $60 billion, right? They could give back half of that and still have $30 billion which I THINK would still be just enough to cover the $4 billion.
And to the poster suggesting that since Apple once almost went bankrupt, that therefore an infinite desire to hold cash is reasonable? Very sad.
Uh... You realize that they have about $60 billion, right? They could give back half of that and still have $30 billion which I THINK would still be just enough to cover the $4 billion.
And to the poster suggesting that since Apple once almost went bankrupt, that therefore an infinite desire to hold cash is reasonable? Very sad.
Uh? You realize that over50% are long term investments and overseas.
Uh? You realize that one component buy up for a year does not a complete device make.
Uh? You realize that spending 10%, 20%, 50% or 100% of your savings just because you have it isn?t a sound idea for any investor, whether it be an individual or company.
Do you give away 50% of your savings simply because you make more than you spend? Of course not. In fact, it?s those that look at $60 billion and see a figure too high to comprehend that probably don?t have more than 4 figures in their cash holdings.
We?re talking $4 billion for one component for one year. Do you really think that is the only component or that they won?t have to increase their investments for each component each year to meet increased demands? What about R&D so they can stay ahead in the game? Thinking it?ll be smooth sailing for Apple forever and ever and ever is how people fail businesses.
The future isn?t certain is the only certainty you can know. For this reason you need to plan for which you can not plan. One way to do that is to keep healthy cash reserves.
And to the poster suggesting that since Apple once almost went bankrupt, that therefore an infinite desire to hold cash is reasonable? Very sad.
To someone in their sixties or seventies, twenty or thirty years of saving is not infinity. It's prudence. A quality in short supply in an era of get-rich-quick business ethics.
From what I gather from the 10-Q, nearly HALF of the $55B position is in short-term (fairly liquid) holdings. Thats just a single country (USA). Hope they got big plans for it already. Hope they have their eye on something they're not telling us about. Perhaps Steve wants to enrage Bill Gates by buying out MSFT. Or Dell... And upon purchase, he will just liquidate the company and give all the money back to the shareholders. Muahahahahahaha
Nah! Apple will buy IBM, then release a PHP -- A PHP is like a PGP, but it is you who are being played!
Posts like that make Android users laugh. Stop and think about where that profit comes from....
Why can't Apple fans simply enjoy their products without devoting so much energy to dissing others?
Is the product experience itself that uninteresting?
Maybe it's because we were the butt end of the "dissing" for almost twenty years by the PC crowd. They were the ones laughing at Mac users while continually starting the "Apple death spiral clock" over and over again. Maybe it's because Windows and Android fans (who seem to prefer anything that isn't Apple) continue to this day to mock Apple and its loyal customers. We're called lemmings, sheeple, kool-aid drinkers, Steve Jobs sycophants. Yet we're not allowed to do a little gloating now that Apple is the 800lb gorilla in the room? Think again. \
Maybe it's because we were the butt end of the "dissing" for almost twenty years by the PC crowd. They were the ones laughing at Mac users while continually starting the "Apple death spiral clock" over and over again. Maybe it's because Windows and Android fans (who seem to prefer anything that isn't Apple) continue to this day to mock Apple and its loyal customers. We're called lemmings, sheeple, kool-aid drinkers, Steve Jobs sycophants. Yet we're not allowed to do a little gloating now that Apple is the 800lb gorilla in the room? Think again. \
Posts like that make Android users laugh. Stop and think about where that profit comes from....
Why can't Apple fans simply enjoy their products without devoting so much energy to dissing others?
Is the product experience itself that uninteresting?
The profit comes from being an innovator who sells compelling new products directly to satisfied customers rather than dumping low-margin inferior copies into sales channels. Any other questions?
This is an Apple website where people take the occasional potshot at other companies. If you want to see non-stop 24/7 irrational anti-Apple raving go to any other tech website.
Apple is actually doing its competition a favor: It?s constraining the number of products they can build that nobody wants to buy.
Quote:
Originally Posted by Logisticaldron
Uh? You realize that spending 10%, 20%, 50% or 100% of your savings just because you have it isn?t a sound idea for any investor, whether it be an individual or company.
Do you give away 50% of your savings simply because you make more than you spend?
It?s amazing how many people would. I?ve known people who do that, and when they lose their jobs, they just keep right on spending anyhow. It?s made me less charitable. It used to be people who needed charity were really in trouble through no fault of their own. Nowadays, it?s more likely to be because of financial foolishness.
Quote:
Originally Posted by Robin Huber
To someone in their sixties or seventies, twenty or thirty years of saving is not infinity. It's prudence. A quality in short supply in an era of get-rich-quick business ethics.
The under-45 crowd today doesn?t understand thrift (i.e. how to live on a budget). That is largely because they have a hard time discerning between what is necessary and what isn?t. "Oh, i just need that that shiny new *fill-in-the-blank*." No, that?s a luxury. What you need is water, food and shelter. Those are necessities. Just about everything else isn?t. I wonder how many people on public assistance (e.g. food stamps) have ditched their cable bills?
They signed an agreement/contract for $3.9 billion.
Apple did prepay for at least some of these components. During the conference call, they specifically mentioned that they had made payments in December for future delivery and also why they termed it a long-term supply investment.
Uh? You realize that over50% are long term investments and overseas.
Uh? You realize that one component buy up for a year does not a complete device make.
Uh? You realize that spending 10%, 20%, 50% or 100% of your savings just because you have it isn?t a sound idea for any investor, whether it be an individual or company.
Do you give away 50% of your savings simply because you make more than you spend? Of course not. In fact, it?s those that look at $60 billion and see a figure too high to comprehend that probably don?t have more than 4 figures in their cash holdings.
We?re talking $4 billion for one component for one year. Do you really think that is the only component or that they won?t have to increase their investments for each component each year to meet increased demands? What about R&D so they can stay ahead in the game? Thinking it?ll be smooth sailing for Apple forever and ever and ever is how people fail businesses.
The future isn?t certain is the only certainty you can know. For this reason you need to plan for which you can not plan. One way to do that is to keep healthy cash reserves.
I am not in favor of a dividend. However, as a shareholder, it does dismay me that they are making only around 1% on their cash reserves.
I responded to a previous post of yours about spending $4B. Apple is throwing off so much cash that they can finance this out of current profits. Apple added $9B cash in the last quarter alone (although not all quarters will match the holiday quarter).
Yes, Apple needs to maintain substantial cash both for being able to strike quickly when opportunities arise and as a rainy day fund. But they don't need $60B (which will probably be over $70B at next quarter's end) in cash reserves. I truly think they are saving up for "something special" and once they make their move it will be like "how obvious was that". But I agree they will not empty they savings to make such a purchase.
A recent AppleInsider article showed that Apple is fifth among handset sellers, and we know that on the desktop OS X has about 10% market share.
We also know that Apple is virtually alone among both handset and PC manufacturers in taking on all of the additional R&D expense of making their own OS.
So they're selling less and spending more than less profitable companies - where do you think the difference comes from?
Except that they don't spend more. Their R&D costs are extremely low. Turns out churning out a new phone every few weeks, even if it's a minor iteration and you slap somebody else's OS on it, is more expensive than releasing one phone a year. Who knew? Moreover, many of the handset manufacturers do have software. Nokia has Symbian and MeeGo. Samsung has Bada. Even HTC is rumoured to be working on its own OS. HP/Palm has PalmOS.
So, yes, I know what you're trying to imply. But you also clearly don't have a clue what you're talking about. Apple is more profitable because it concentrates on the most profitable part of the market, has few products, standardises components across its entire range so it can reduce costs and releases extremely compelling products that people are willing to pay for rather than dumping them into supply channels in the hope that carriers can shift enough to warrant coming back for more.
I am not in favor of a dividend. However, as a shareholder, it does dismay me that they are making only around 1% on their cash reserves.
I responded to a previous post of yours about spending $4B. Apple is throwing off so much cash that they can finance this out of current profits. Apple added $9B cash in the last quarter alone (although not all quarters will match the holiday quarter).
Yes, Apple needs to maintain substantial cash both for being able to strike quickly when opportunities arise and as a rainy day fund. But they don't need $60B (which will probably be over $70B at next quarter's end) in cash reserves. I truly think they are saving up for "something special" and once they make their move it will be like "how obvious was that". But I agree they will not empty they savings to make such a purchase.
All good points, but we need to keep in mind that there are dozens of component vendors/manufacturers involved with all of Apple?s products. They can easily spend billions for many components, billions investing in a new factory so they can try to meet growing consumer demands, and/or billions in backing R&D in conjunction with other companies for tech they want to potentially use down the road.
Then there drops in the market and changes in the market they need to contend with. Apple has no monopoly on always be successful or always having the best products on thee market. I?m not that old but I?ve seen and read about many a company falter because they didn?t invest in innovation and didn?t plan for an eventual fall from the top from an unforeseen change in the market.
Apple?s cash will grow, but so will there expenses and investments for R&D and suppliers. It?s unlikely this will be a 1:1 exchange that will keep their cash at the same level.
Is there a percentage they should spend each year just because they have the cash? And what would this percentage be of? The previous or next year?s profits or revenue?
This is an Apple website where people take the occasional potshot at other companies. If you want to see non-stop 24/7 irrational anti-Apple raving go to any other tech website.
Occasional?Occasional??? You don't read many comments around here, do you?
Comments
The more money you have in a savings account the lower the interest rate.
Apple may just have conservative views on how to invest their money.
You mean how to invest MY money, right?
So where are the posters that want Apple to give all their cash holdings back to the shareholders with a huge tax fee thus reducing the stock value doubly with only a little, short-term benefit to the shareholder, instead of investing in longterm component acquisitions that can put them a step ahead of their competitors as needed while still being able to turn out a healthy profit? I feel bad for the people that have no sense of savings.
Uh... You realize that they have about $60 billion, right? They could give back half of that and still have $30 billion which I THINK would still be just enough to cover the $4 billion.
And to the poster suggesting that since Apple once almost went bankrupt, that therefore an infinite desire to hold cash is reasonable? Very sad.
Uh... You realize that they have about $60 billion, right? They could give back half of that and still have $30 billion which I THINK would still be just enough to cover the $4 billion.
And to the poster suggesting that since Apple once almost went bankrupt, that therefore an infinite desire to hold cash is reasonable? Very sad.
Uh? You realize that over50% are long term investments and overseas.
Uh? You realize that one component buy up for a year does not a complete device make.
Uh? You realize that spending 10%, 20%, 50% or 100% of your savings just because you have it isn?t a sound idea for any investor, whether it be an individual or company.
Do you give away 50% of your savings simply because you make more than you spend? Of course not. In fact, it?s those that look at $60 billion and see a figure too high to comprehend that probably don?t have more than 4 figures in their cash holdings.
We?re talking $4 billion for one component for one year. Do you really think that is the only component or that they won?t have to increase their investments for each component each year to meet increased demands? What about R&D so they can stay ahead in the game? Thinking it?ll be smooth sailing for Apple forever and ever and ever is how people fail businesses.
The future isn?t certain is the only certainty you can know. For this reason you need to plan for which you can not plan. One way to do that is to keep healthy cash reserves.
Read this article and you might get a clue as to why importing $30 billion back to the US just to give to stockholders is a follish notion: http://arstechnica.com/apple/guides/...-look-big.ars/
And to the poster suggesting that since Apple once almost went bankrupt, that therefore an infinite desire to hold cash is reasonable? Very sad.
To someone in their sixties or seventies, twenty or thirty years of saving is not infinity. It's prudence. A quality in short supply in an era of get-rich-quick business ethics.
Read this article and you might get a clue as to why importing $30 billion back to the US just to give to stockholders is a follish notion: http://arstechnica.com/apple/guides/...-look-big.ars/
Thanks for this link, a really good read and for once very easy to follow.
From what I gather from the 10-Q, nearly HALF of the $55B position is in short-term (fairly liquid) holdings. Thats just a single country (USA). Hope they got big plans for it already. Hope they have their eye on something they're not telling us about. Perhaps Steve wants to enrage Bill Gates by buying out MSFT. Or Dell... And upon purchase, he will just liquidate the company and give all the money back to the shareholders. Muahahahahahaha
Nah! Apple will buy IBM, then release a PHP -- A PHP is like a PGP, but it is you who are being played!
jejejejeje
Posts like that make Android users laugh. Stop and think about where that profit comes from....
Why can't Apple fans simply enjoy their products without devoting so much energy to dissing others?
Is the product experience itself that uninteresting?
Maybe it's because we were the butt end of the "dissing" for almost twenty years by the PC crowd. They were the ones laughing at Mac users while continually starting the "Apple death spiral clock" over and over again. Maybe it's because Windows and Android fans (who seem to prefer anything that isn't Apple) continue to this day to mock Apple and its loyal customers. We're called lemmings, sheeple, kool-aid drinkers, Steve Jobs sycophants. Yet we're not allowed to do a little gloating now that Apple is the 800lb gorilla in the room? Think again.
Maybe it's because we were the butt end of the "dissing" for almost twenty years by the PC crowd. They were the ones laughing at Mac users while continually starting the "Apple death spiral clock" over and over again. Maybe it's because Windows and Android fans (who seem to prefer anything that isn't Apple) continue to this day to mock Apple and its loyal customers. We're called lemmings, sheeple, kool-aid drinkers, Steve Jobs sycophants. Yet we're not allowed to do a little gloating now that Apple is the 800lb gorilla in the room? Think again.
It's all in good fun.
Posts like that make Android users laugh. Stop and think about where that profit comes from....
Why can't Apple fans simply enjoy their products without devoting so much energy to dissing others?
Is the product experience itself that uninteresting?
The profit comes from being an innovator who sells compelling new products directly to satisfied customers rather than dumping low-margin inferior copies into sales channels. Any other questions?
This is an Apple website where people take the occasional potshot at other companies. If you want to see non-stop 24/7 irrational anti-Apple raving go to any other tech website.
The company that comes up with an alternative technology for touch screens other than LCD could do very well round about now!
You mean like Samsung with Super AMOLED?
This article is hugely misleading. Samsung has no problems sourcing touchscreens.
Uh? You realize that spending 10%, 20%, 50% or 100% of your savings just because you have it isn?t a sound idea for any investor, whether it be an individual or company.
Do you give away 50% of your savings simply because you make more than you spend?
It?s amazing how many people would. I?ve known people who do that, and when they lose their jobs, they just keep right on spending anyhow. It?s made me less charitable. It used to be people who needed charity were really in trouble through no fault of their own. Nowadays, it?s more likely to be because of financial foolishness.
To someone in their sixties or seventies, twenty or thirty years of saving is not infinity. It's prudence. A quality in short supply in an era of get-rich-quick business ethics.
The under-45 crowd today doesn?t understand thrift (i.e. how to live on a budget). That is largely because they have a hard time discerning between what is necessary and what isn?t. "Oh, i just need that that shiny new *fill-in-the-blank*." No, that?s a luxury. What you need is water, food and shelter. Those are necessities. Just about everything else isn?t. I wonder how many people on public assistance (e.g. food stamps) have ditched their cable bills?
What? They didn't do anything with the cash.
Apple did not pay cash up front.
They signed an agreement/contract for $3.9 billion.
Apple did prepay for at least some of these components. During the conference call, they specifically mentioned that they had made payments in December for future delivery and also why they termed it a long-term supply investment.
Uh? You realize that over50% are long term investments and overseas.
Uh? You realize that one component buy up for a year does not a complete device make.
Uh? You realize that spending 10%, 20%, 50% or 100% of your savings just because you have it isn?t a sound idea for any investor, whether it be an individual or company.
Do you give away 50% of your savings simply because you make more than you spend? Of course not. In fact, it?s those that look at $60 billion and see a figure too high to comprehend that probably don?t have more than 4 figures in their cash holdings.
We?re talking $4 billion for one component for one year. Do you really think that is the only component or that they won?t have to increase their investments for each component each year to meet increased demands? What about R&D so they can stay ahead in the game? Thinking it?ll be smooth sailing for Apple forever and ever and ever is how people fail businesses.
The future isn?t certain is the only certainty you can know. For this reason you need to plan for which you can not plan. One way to do that is to keep healthy cash reserves.
Read this article and you might get a clue as to why importing $30 billion back to the US just to give to stockholders is a follish notion: http://arstechnica.com/apple/guides/...-look-big.ars/
I am not in favor of a dividend. However, as a shareholder, it does dismay me that they are making only around 1% on their cash reserves.
I responded to a previous post of yours about spending $4B. Apple is throwing off so much cash that they can finance this out of current profits. Apple added $9B cash in the last quarter alone (although not all quarters will match the holiday quarter).
Yes, Apple needs to maintain substantial cash both for being able to strike quickly when opportunities arise and as a rainy day fund. But they don't need $60B (which will probably be over $70B at next quarter's end) in cash reserves. I truly think they are saving up for "something special" and once they make their move it will be like "how obvious was that". But I agree they will not empty they savings to make such a purchase.
Think about it:
A recent AppleInsider article showed that Apple is fifth among handset sellers, and we know that on the desktop OS X has about 10% market share.
We also know that Apple is virtually alone among both handset and PC manufacturers in taking on all of the additional R&D expense of making their own OS.
So they're selling less and spending more than less profitable companies - where do you think the difference comes from?
Except that they don't spend more. Their R&D costs are extremely low. Turns out churning out a new phone every few weeks, even if it's a minor iteration and you slap somebody else's OS on it, is more expensive than releasing one phone a year. Who knew? Moreover, many of the handset manufacturers do have software. Nokia has Symbian and MeeGo. Samsung has Bada. Even HTC is rumoured to be working on its own OS. HP/Palm has PalmOS.
So, yes, I know what you're trying to imply. But you also clearly don't have a clue what you're talking about. Apple is more profitable because it concentrates on the most profitable part of the market, has few products, standardises components across its entire range so it can reduce costs and releases extremely compelling products that people are willing to pay for rather than dumping them into supply channels in the hope that carriers can shift enough to warrant coming back for more.
I am not in favor of a dividend. However, as a shareholder, it does dismay me that they are making only around 1% on their cash reserves.
I responded to a previous post of yours about spending $4B. Apple is throwing off so much cash that they can finance this out of current profits. Apple added $9B cash in the last quarter alone (although not all quarters will match the holiday quarter).
Yes, Apple needs to maintain substantial cash both for being able to strike quickly when opportunities arise and as a rainy day fund. But they don't need $60B (which will probably be over $70B at next quarter's end) in cash reserves. I truly think they are saving up for "something special" and once they make their move it will be like "how obvious was that". But I agree they will not empty they savings to make such a purchase.
All good points, but we need to keep in mind that there are dozens of component vendors/manufacturers involved with all of Apple?s products. They can easily spend billions for many components, billions investing in a new factory so they can try to meet growing consumer demands, and/or billions in backing R&D in conjunction with other companies for tech they want to potentially use down the road.
Then there drops in the market and changes in the market they need to contend with. Apple has no monopoly on always be successful or always having the best products on thee market. I?m not that old but I?ve seen and read about many a company falter because they didn?t invest in innovation and didn?t plan for an eventual fall from the top from an unforeseen change in the market.
Apple?s cash will grow, but so will there expenses and investments for R&D and suppliers. It?s unlikely this will be a 1:1 exchange that will keep their cash at the same level.
Is there a percentage they should spend each year just because they have the cash? And what would this percentage be of? The previous or next year?s profits or revenue?
This is an Apple website where people take the occasional potshot at other companies. If you want to see non-stop 24/7 irrational anti-Apple raving go to any other tech website.
Occasional? Occasional??? You don't read many comments around here, do you?