It is going to be interesting to see how Apple takes advantage of their huge cash reserves over the remainder of the calendar year. While some competition has been living on razer thin profit margins during a booming worldwide economy, Apple has used their 38% margin to create a rainy day fund large enough to continue full operation for years without selling a single iphone. I would love to see Apple put the petal to the floor and speed up innovation at a time when much of the tech world are worried about how to survive until the world economy rebounds.
Not sure how much of an advantage cash reserves will be with interest rates near zero the world over.
With the exception of a short lived blip, they've been near zero (or close enough not to matter) for over a decade now.
In addition, the economy is slopping over with excess liquidity after the Fed has poured $6T into it.
It is anybody's guess where his will take us in the future as the foundations of capitalism (scarce resources and present day value of funds) are erased.
Comments