How Should Apple Spend its $51 Billion

Poll: How Should Apple Spend its $51 Billion?
Total Votes: 30
Spend it? No way.
5
Buy Adobe
4
Buy Netflix
5
Buy Dropbox
2
Buy some other company
9
Pay a shareholder dividend
5
  • Avatar

    Posted: 27 October 2010 11:31 AM

    Apple has US$51 billion in cash sitting in the bank. How do you think it should be spent?

         
  • Avatar

    Posted: 27 October 2010 11:36 AM #1

    The Obligatory “Give it to me” post

    Signature

    Take Only Pictures, Leave Only Footprints
    Is No Way To Run An Art Gallery

         
  • Avatar

    Posted: 27 October 2010 11:43 AM #2

    I doubt it is in a mattress somewhere. Whatever Apple does with the cash has to bring in more than it is earning now.

    Signature

    Take Only Pictures, Leave Only Footprints
    Is No Way To Run An Art Gallery

         
  • Avatar

    Posted: 27 October 2010 12:38 PM #3

    I voted for them to buy Adobe, but only because don’t buy anyone wasn’t a choice. Well it was on the ballot, anyway

    Apple is selling a lot of product and doesn’t need help so I would think that holding on to the cash is currently the best thing to do.

    Signature

    “Works of art, in my opinion, are the only objects in the material universe to possess internal order, and that is why, though I don’t believe that only art matters, I do believe in Art for Art’s sake.” E. M. Forster

         
  • Avatar

    Posted: 27 October 2010 12:49 PM #4

    Netflix.  It would fit right in line with iTunes and everything else Apple is looking to get into.

    Signature

    Tron is cool

         
  • Posted: 27 October 2010 01:00 PM #5

    I vote they acquire Adobe for the simple reason that I don’t want Microsoft or anyone else to gobble them up. My bread and butter depends on the Creative Suite and Microsoft would surely screw up everything. If Microsoft did buy Adobe, I’d be sticking with CS5 for a very, very long time.

    I think that combining the talent at Adobe with the talent at Apple is a win-win.

         
  • Avatar

    Posted: 27 October 2010 01:01 PM #6

    From the point of view of an Apple executive, why feel any pressure to do anything with that cash just because there is a growing pile of it?

    Apple is doing extremely well right now - great new products that are selling well, the stock price hitting all-time-highs, record revenues, record earnings, etc.

    What the cash balance provides is a safety net for whenever (if?) a stumble occurs.  Using it when everything is going so well would take away that safety net.

    If ever a management team has earned the right to receive the benefit of the doubt - including their decision to hold what appears to be a massive amount of cash - the current Apple team has earned that benefit.

    TS2K

    Signature


    Good ideas only enter open minds.

         
  • Posted: 29 October 2010 03:10 PM #7

    An argument I’m confronted with more and more is that the govt. should tax these “excessive” corporate cash reserves to help pay down the govt. debt. This meme is fundamentally flawed because the cash has already been taxed - it is what’s left over after you pay your taxes. But this argument doesn’t hold water to those who see $51B just sitting there like a ripe plum for the taking. So I would like to advance a different argument: corporations will be better more efficient at utilizing that cash than the govt. would be (I usually don’t get much disagreement here). The problem is that Apple and other companies aren’t spending the cash because they see it as a hedge against uncertainty. So the real problem is creating a sense of stability, and grabbing “excess” cash reserves isn’t going to help with that.

         
  • Avatar

    Posted: 29 December 2010 08:41 PM #8

    Apple is VERY smart with their cash. No way would they squander their cash on overpriced companies like Netflix, etc. Their purchases have been highly strategic and relatively small.

    Probably won’t happen but I like to see Apple set aside ~20% of their cash for a strategic stock buyback in case of an “event”. i.e. SJ announcing his retirement, Black Swan, etc.

      cheers to the longs
          JohnG

         
  • Avatar

    Posted: 01 January 2011 09:11 PM #9

    TechStock2000 - 27 October 2010 04:01 PM

    If ever a management team has earned the right to receive the benefit of the doubt - including their decision to hold what appears to be a massive amount of cash - the current Apple team has earned that benefit.

    TS2K

    absolutely

         
  • Avatar

    Posted: 01 January 2011 09:12 PM #10

    they could buy back a ton of shares..

         
  • Posted: 08 February 2011 05:26 AM #11

    Apple is selling a lot of product and doesn?t need help so I would think that holding on to the cash is currently the best thing to do.

         
  • Avatar

    Posted: 26 February 2011 09:02 PM #12

    Cisco, Apple (AAPL), Duke Energy (DUK), Pfizer (PFE), are ?among the major players looking to bankroll a coordinated, sustained pitch to sell policymakers on the idea? of a tax ?holiday,? writes Newmyer, adding that the campaign is still in the planning stages. Such a reprieve would tax repatriated cash at 5% rather than the 35% rate companies face currently.

    Cisco and Apple are two firms with billions overseas. Cisco?s CEO John Chambers has been a strong and vocal advocate for many years now for the view that allowing cash to be repatriated at lower tax rates would aid investment in the U.S. and allow for a greater return of cash to shareholders through dividends.

    If Apple were able to bring in some of this cash from overseas at a lower tax rate we might see a larger scale acquisition.

    Signature

    Tim Cook: iPad is 91% of all tablet web traffic. I don’t know what these other tablets are doing.