Apple execs are 'actively discussing' what to do with nearly $100B cash hoard



  • Reply 61 of 120
    Build a Death Star!
  • Reply 62 of 120
    solipsismxsolipsismx Posts: 19,566member
    Originally Posted by Tallest Skil View Post

    Buy Dell. Shut it down. Give the money back to the shareholders.

    I want to buy the Dell quote... then shut it down.

    That and "ANALyst" or any dirivitave. Can't stand either in tech forums.

    Originally Posted by kresh View Post

    both should do the right thing, two wrongs never make a right [sorry for the punctuation, my wireless keyboard stopped working and i am having to use the on-screen keyboard]

    Apple is doing th leak thing. Why you think it's not right for Apple to keep money in countries in which in made the money is something you'll have to explain.

    Originally Posted by franktinsley View Post

    1. Save up all the money.

    2. Buy Earth.

    3. Start Federation of Planets.

    Sounds like a plan.

    Originally Posted by paulchsieh View Post

    Seriously, Apple should buy RIM so that it can enter Enterprise market. RIM is valuable because of its private eMail exchange network and the security it provides.

    Apple should launch an Enterprise Sales Division - selling business management solution using the same hardware - iPad, iPhone, and Mac.

    RIM is very cheap now.

    Apple's iPhone is popular in the enterprise. It's what brought down RiM's position. And there is nothing RiM has that Apple needs? Business contacts? BES server? No!

    Originally Posted by Suddenly Newton View Post

    That might explain why everyone uses tablets in the 24th Century.

  • Reply 63 of 120
    paul94544paul94544 Posts: 1,027member
    Originally Posted by JONOROM View Post

    I think they will buy (or do a cash deal with) a provider like Direct TV. Like they did with AT&T for the iPhone. Apple will make the new iTV the standard for one provider, with lots of new services and ease of use. And acquire lots of content deals in the bargain.

    Start with one provider and then expand. Sell Direct TV and move on to another. Today Direct TV has a market cap of $31B, and Apple could finance a good portion of the purchase price; it would probably take about 10% of their cash to get this rolling. Direct TV's PE is about 14, so Apple would be earning a lot more than they are currently with their cash holdings.

    Yeah I hadn't thought about Direct TV. Don't they own Echostar now, not sure it may be Echostar that own Hughes, Another candidate may be L3 or Akamie , what about Dish?
  • Reply 64 of 120
    Whatever Apple decides to do with the cash, I hope they throw in a 4-for-1 stock split for good measure.
  • Reply 65 of 120
    Originally Posted by kresh View Post

    how about bringing it home and paying their taxes

    Why? Apple as a business does what it must to survive... and it's all legal. And paying "more taxes" doesn't cut it anymore. The problem with government is spending.
  • Reply 66 of 120
    Originally Posted by k2director View Post

    Whatever Apple decides to do with the cash, I hope they throw in a 4-for-1 stock split for good measure.

    Nah. I'm fine with no stock split, no dividends.
  • Reply 67 of 120
    red oakred oak Posts: 1,088member
    I bet Apple is making sure they can fund a scenario where they are 40-50% of all smartphones and 80%+ of the tablet market 10 years from now on a worldwide unit basis. The volumes in 10 years at these unit share levels are going to be staggering.

    It will require tremendous investment in logistics, supply chain, mfg capacity, new stores, etc.. unlike anything any company has ever done. They need to be prepared that they are, effectively, an industry onto themselves. I think this must be the highest priority

    That said, the cash is growing far faster then they have been able to deploy it thus far. And the growth is accelerating. I think a large stock buyback and/or dividend is very likely in 2012.

    Note a 3% dividend at $500 share price would cost about $14 billion a year. Well below the $50 to $60 billion they will generate in cash this year. It really comes down to I think what they need to materially increase their current capacity to support their long term share goals
  • Reply 68 of 120
    Originally Posted by SpamSandwich View Post

    Why? Apple as a business does what it must to survive... and it's all legal. And paying "more taxes" doesn't cut it anymore. The problem with government is spending.

    Tax legal is a nebulous term, here today, gone tomorrow. The issues of government 'spending' are, IMO, primarily- health care cost as a percentage of the economy has grown from about 5% of GDP in 1965 to about 16 %(in case your wondering, this is freaking huge) today and no real increase in government income to match that large of an increase in expedature. Consequntly and in addition, since Reagan(who had huge deficits in recession... Sound familiar,... and then instituted many tax increases... Damn socialist) the amount of goverment interest payments has grown from about 10% of budget to about 30% today. And for example gasoline taxes went from about 30% per gallon in 1980s to about 12% today. And Bush tax cuts to the lowest effective rate since before WWII. The number of US government employees per 1000 citizens has dropped steadily since 1965. So yea grandma...we have a 'spending' issue, no more Medicare for you! I have an iPad to buy. Apple must survive. Cant spare a square. Glad I have my priorities straight. End of rant... Sorry.

    But back to topic.... There's only so many things Apple can do and still stay to their core items. I'll guess they'll offer dividends.
  • Reply 69 of 120
    tundraboytundraboy Posts: 1,885member
    Originally Posted by JONOROM View Post

    Where would you build such a facility? Texas

    We're would you get the production workers, the engineers, and everyone else to do this. With 18% unemployment (including discouraged workers) which equals millions of Americans, I don't think that woudl be much of a problem.

    Then you would have all the delays due to environmental studies, union activities, U.S government mucking about,
    If Samsung can build a $5B fab in Texas for the A5 and A6 in less than a year, I don't think this will be a problem.

    You are just one of the "negos" (as I used to say in grade school). America has the first or second largest manufacturing sector in the world (depending upon who's numbers you are using). The hurdles here are comparable (but NOT the same) as in any other country. Look at the government corruption, roadblocking and graft in China. They just finally approved the iPhone 4S, after months of delay!

    We could do it within a blink of the eye.

    There is a world of a difference between final component assembly, which is a relatively low-tech labor intensive process, and chip fabrication, which is a technology and capital intensive activity.

    And you think just because there are a lot of unemployed right now you can easily scrounge up 3000 engineers and 40,000 skilled assembly line workers just like that? As skill requirements go, tomato picking seems easy to fill, right? Well, Alabama can't even find enough tomato pickers to replace the ones they scared away.

    You don't really know what you're talking about.
  • Reply 70 of 120
    tundraboytundraboy Posts: 1,885member
    What I like about Apple is they don't pay any heed to this B-School BS of "maximizing shareholder value". That's just become an excuse for all sorts of short term stock price manipulation which the executives then use to award themselves undeserved bonuses. Instead, Apple lives by "Build the best products in the world and the stock price takes care of itself."

    That's why I'm opposed to stock buybacks and, though not as much, dividends. If you want to get your share of Apple's cash, sell your stock.

    What to do with their cash? Apple needs that big pile of cash to be in plain view of the Comcasts, Verizons and ATTs of the world so that there can be no doubt in their minds that if they try to put the squeeze on Apple, Tim Cook will just go out and either buy or build his own carrier.

    Or a close second is for Apple, Google, Samsung and MSFT to right now go and by T-Mobile and have T-Mo ensure some price discipline among the wireless carriers. Why a consortium? To avoid getting into antitrust trouble with the Feds.
  • Reply 71 of 120
    blitz1blitz1 Posts: 438member
    Originally Posted by sflocal View Post

    It is my understanding that all revenue Apple makes overseas is taxed at the rate based on the country the revenue was made in. So they already paid their taxes. Because Apple does not want to pay more taxes on top of what was already paid by the country of origin, they are keeping that money overseas. I'd do the same thing.

    So what problem do you have? Oh right... they should pay even more taxes simply to deposit it into a US bank and spend that money in the US right?

    Because the amount they are paying in taxes already is not enough right?

    I don't think you've heard of double tax treaties.
  • Reply 72 of 120
    Originally Posted by barnsey_00 View Post

    Build a Death Star!

    I would like to second this notion.

    It could be powered by OSX. Stormtroopers would be equipped with iPads/phones....

    'Destruction at your fingertips'

  • Reply 73 of 120
    tcaseytcasey Posts: 199member
    Apple should consider purchase or investing more into the following :

    1.Consider Buying Facebook - though will it be this popular in 5 years maybe.

    2.Invest more into data centers.

    3.Invest into creating better and more independent power/energy sources.

    4.Invest in r and d into create the next level power or better battery life's. a bandwidth or technology so apple does not need to use the telephone co. and can offer customers direct service with apple and not a cell co.
  • Reply 74 of 120
    Apple should wage a nuclear war on Android.In memory of Steve Jobs.
  • Reply 75 of 120
    Originally Posted by AppleGreen View Post

    Buy a time machine (a real one) and bring Steve back.

    Steve's DNA cloning is underway. For the time being, legal issues only still remain to be resolved. Apple's legal Department is working on this.
  • Reply 76 of 120
    MarvinMarvin Posts: 15,323moderator
    They could put 1 million high power wifi stations in homes across the country spending $1000/yr or so to keep them there and build the largest wifi network in the world and charge a subscription for use. For the last mile coverage, they could launch, rent or buy a satellite:

    It seems there might be one going for under $250m:,00.html

    I'm sure they will be investing heavily in R&D so hopefully a lot goes into energy research. Batteries are probably the most important thing holding technology back. A system to convert heat back into electricity would be pretty good too so they could take the excess heat from a CPU burning away to help charge the battery back up.
  • Reply 77 of 120
    Originally Posted by franktinsley View Post

    1. Save up all the money.

    2. Buy Earth.

    3. Start Federation of Planets.

    create iEarth?
  • Reply 78 of 120
    Originally Posted by thataveragejoe View Post

    Yes, we all know you hate Samsung. Just remember their revenue alone is over 250 billion with assets close to a half trillion. Even the electronics division alone makes 20% more than Apple even has in cash annually.

    All for putting Dell out of its misery though.

    Sorry to rain on your parade, but...

    Samsung Electronics is a separate, public company, and could EASILY be swallowed by Apple. Their market cap as of today is only about $138 Billion, which could be easily absorbed considering the financial standing of Apple.

    Samsung's Revenues are in line with that of Apple's, but their Profit isn't even close. Not to mention that much of that revenue and profit comes directly from their business with Apple.
  • Reply 79 of 120
    Originally Posted by AppleGreen View Post

    Buy a time machine (a real one) and bring Steve back.

  • Reply 80 of 120
    realisticrealistic Posts: 1,154member
    Originally Posted by cdub View Post

    With 97 Billion in the bank and 13 billion in profit this is easy.

    The workers exist here in the states. The only reason people say they don't is that they'd rather use cheap slave labor and they're trying to rationalize it.

    If they built the factory here they'd have to turn people away the demand to work there would be so high,

    "If you build it they will come."

    Get a clue before you comment. The workers may exist but not if the wages are comparable to those in China. The selling price of the USA made products would have to increase to cover the increased cost to manufacture.

    People always say they are willing to pay more for products made here in USA but history proves that most won't which is why manufacturing went elsewhere to start with..
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