Is that ~4.3 billion cold cash in the bank, or does it include Arm/Earthlink/Akamai stocks? Because the drop in the stock market is forcing Apple to write down the value of their stock portfolio when the next Q-result is presented. Apple is owning 5 %(?) of Akamai. At one point the value of that share alone was over $1 billion. Now its only worth about $6 million.
BTW, I dont believe Apple is going to spend 2 billion.. but there are some reasons why it would make sense.. Tech stocks are not as overvalued as they used to be, and the AAPL market cap vs cash-situation makes it a great hostile buyout target.
This seems a little dubious to me. If it's true, one thing is of interest, though: Apple used a common business "sneaky" by making the purchase right after its quarterly financials so that no formal evidence needs to be presented to shareholders or the public for three months...
I have to agree with what's been said before. If it's true, it's got to be to do with CPUs.
<strong>In light of Apple's recent purchasing spree of software companies... it made me start thinking: What's stopping Microsoft from doing the same thing. Maybe even (GASP) on a larger scale? Scary thought! </strong><hr></blockquote>
Microsoft used to buy every company in their path, now they are on the line for it.
"Despite the slowdown in the market, our operational efficiency was excellent," said Fred Anderson, Apple's CFO. "Our balance sheet is very strong, with $4.3 billion in cash, and we achieved a very efficient cash conversion cycle of -36 days. We expect September quarter revenues to be approximately flat with the June quarter, and expect a slight profit for the quarter before any non-recurring items."
Do you think a publicly traded company would spend HALF of their cash in a market like this? No way would they do that. A good CFO wouldn't allow that to happen.
<strong>Do you think a publicly traded company would spend HALF of their cash in a market like this? No way would they do that. A good CFO wouldn't allow that to happen.</strong><hr></blockquote>
Hmm, not sure on this one. If it provided the only way for Apple to get past 1GHz, and it has $4.3 billion, it's actually a fantastic time to be spending cash...
Do you think a publicly traded company would spend HALF of their cash in a market like this? No way would they do that. A good CFO wouldn't allow that to happen.</strong><hr></blockquote>
Alot can change in half a month. Do you think that Anderson would have said something like "we are about to buy out Motorola's PPC division"? NO way he would say that.
I am not saying that this is a true rumor, but that we can sit around and talk about what Apple MIGHT have spend the money on if they did so. There is no harm in discussion, and that is why we are in future hardware- to discuss the completely unfounded rumors as if they might be true.
<strong>How much does SGI actually cost?</strong><hr></blockquote>
Gah. If Apple's bought SGI, we might as well all shoot ourselves now. Or buy a PC, anyway.
SGI no longer has anything to offer.
[quote]Originally posted by Yevgeny:
<strong>I am not saying that this is a true rumor, but that we can sit around and talk about what Apple MIGHT have spend the money on if they did so. There is no harm in discussion, and that is why we are in future hardware- to discuss the completely unfounded rumors as if they might be true.</strong><hr></blockquote>
Exactly. This is my kind of unfounded rumor. None of this crap about tablets and PDAs and 2GHz G5s.
Although, with my moderating hat on, should this be Future Hardware or General Discussion? Hmm...
Other vendors use AltiVec, so spending $2 billion on to buy the whole boat is a little much, don't you think. Plus Apple, if I remember correctly has the rights to buy out Moto PPC's next year, correct? Little early on the gun....
SGI market cap total market cap is $277.5M with about $1.3 billion in total revenue a year. Hell its cheaper to buy SGI than it was to buy NeXT. Apple should just buy SGI and put an end to their misery. Think of all the patents and knowhow they must have. Gawd, to hand pick those engineers. The do have the BEST HIGH-END HARDWARE on the planet and their processors top out at only 600Mhz. I've used them, its awesome stuff. Jezz, I swear I'm going to write a book "How to kill a company slowy - An examination of Bob Bishop's failure at SGI"
Comments
<strong>WHERE IS THE EVIDENCE</strong><hr></blockquote>
Don't got none.
Here is the unparaphrased statement that I heard...
"Apple's Cash took a huge downturn 2 weeks ago..... 50% drop according to insiders. what does a company do with 2 billion?"
If Apple has the ability to buy a these smaller companies, what is stopping them from spending all their dough? Do they have a spending limit?
Anyone know the rules to the corporate spending game?
MSKR
<strong>Here is the unparaphrased statement that I heard...</strong><hr></blockquote>
who made that statement?
It might be a mole trap, but I'm going to wait for the offical word on this one..
<strong>
who made that statement?</strong><hr></blockquote>
Ben Franklin.
<img src="graemlins/lol.gif" border="0" alt="[Laughing]" />
BTW, I dont believe Apple is going to spend 2 billion.. but there are some reasons why it would make sense.. Tech stocks are not as overvalued as they used to be, and the AAPL market cap vs cash-situation makes it a great hostile buyout target.
I have to agree with what's been said before. If it's true, it's got to be to do with CPUs.
<strong>In light of Apple's recent purchasing spree of software companies... it made me start thinking: What's stopping Microsoft from doing the same thing. Maybe even (GASP) on a larger scale? Scary thought! </strong><hr></blockquote>
Microsoft used to buy every company in their path, now they are on the line for it.
"Despite the slowdown in the market, our operational efficiency was excellent," said Fred Anderson, Apple's CFO. "Our balance sheet is very strong, with $4.3 billion in cash, and we achieved a very efficient cash conversion cycle of -36 days. We expect September quarter revenues to be approximately flat with the June quarter, and expect a slight profit for the quarter before any non-recurring items."
Do you think a publicly traded company would spend HALF of their cash in a market like this? No way would they do that. A good CFO wouldn't allow that to happen.
<strong>Do you think a publicly traded company would spend HALF of their cash in a market like this? No way would they do that. A good CFO wouldn't allow that to happen.</strong><hr></blockquote>
Hmm, not sure on this one. If it provided the only way for Apple to get past 1GHz, and it has $4.3 billion, it's actually a fantastic time to be spending cash...
Or maybe Steve just handed himself a nice iCEO iCompensation for 2002?
<strong>JULY 16, 2002 Apple press release:
Do you think a publicly traded company would spend HALF of their cash in a market like this? No way would they do that. A good CFO wouldn't allow that to happen.</strong><hr></blockquote>
Alot can change in half a month. Do you think that Anderson would have said something like "we are about to buy out Motorola's PPC division"? NO way he would say that.
I am not saying that this is a true rumor, but that we can sit around and talk about what Apple MIGHT have spend the money on if they did so. There is no harm in discussion, and that is why we are in future hardware- to discuss the completely unfounded rumors as if they might be true.
<strong>How much does SGI actually cost?</strong><hr></blockquote>
Gah. If Apple's bought SGI, we might as well all shoot ourselves now. Or buy a PC, anyway.
SGI no longer has anything to offer.
[quote]Originally posted by Yevgeny:
<strong>I am not saying that this is a true rumor, but that we can sit around and talk about what Apple MIGHT have spend the money on if they did so. There is no harm in discussion, and that is why we are in future hardware- to discuss the completely unfounded rumors as if they might be true.</strong><hr></blockquote>
Exactly. This is my kind of unfounded rumor.
Although, with my moderating hat on, should this be Future Hardware or General Discussion? Hmm...
If you dont like it switch thread. <img src="graemlins/oyvey.gif" border="0" alt="[No]" />
As of right now, there is no reason for me to lock this.
SGI market cap total market cap is $277.5M with about $1.3 billion in total revenue a year. Hell its cheaper to buy SGI than it was to buy NeXT. Apple should just buy SGI and put an end to their misery. Think of all the patents and knowhow they must have. Gawd, to hand pick those engineers. The do have the BEST HIGH-END HARDWARE on the planet and their processors top out at only 600Mhz. I've used them, its awesome stuff. Jezz, I swear I'm going to write a book "How to kill a company slowy - An examination of Bob Bishop's failure at SGI"
<strong>How much does SGI actually cost? Or Motorola? </strong><hr></blockquote>
Owning SGI is the kiss of death. SGI hasn't done anything right in years.
Motorola's market cap (value of stock) is above 25 billion.
2 words:
Moon Pies
<img src="graemlins/lol.gif" border="0" alt="[Laughing]" />
Chas
(this is one of the dumbest rumors I've heard 'round here in some time!)