The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple's Cash Hoard Rivals Microsoft's

Apple's Cash Hoard Rivals Microsoft's

by , 2:05 PM EDT, May 5th, 2008

Apple has more cash on hand than Google and IBM and is second only to Microsoft, according to a story at seattlepi on Monday. While Microsoft's cash has dwindled due to dividends and share buy backs, Apple's has steadily grown. In fact, Apple has more cash than Hewlett-Packard and Dell combined.

The trend, according to Tod Bishop, has implications fot the two companies. Apple has consistently claimed that the purposes of that cash is for possible acquisitions or stock buyback when quizzed by analysts. On the other hand, Microsoft was recently in a position where it would have had to borrow money to acquire Yahoo! -- a deal that has collapsed.

"Stock buyback programs and other forms of returning the cash are discussed with the board from time to time," Peter Oppenheimer, Apple's chief financial officer, typically reiterates at earnings reports. Apple wants to "maintain a strong balance sheet in order to preserve our flexibility to make strategic investments and/or acquisitions," he has said.

The idea behind a stock buy back is to decrease the number of outstanding shares and improve the earnings per share (EPS) ratio.

Pacific Crest analyst Andy Hargreaves continues to believe that Apple is over capitalized. "You'd like to see them return that in one way or another, or put it to work." Exactly that kind of large, strategic acquisition has been recently hypothesized by Robert X. Cringely.

While Microsoft still has more cash than Apple, Microsoft's recent failure to utilize its cash in contrast to Apple's steady hand with its own is revealling contrast in the two comany's management styles. In the long run, it could also dictate the health of the two companies in difficult economic times.

Recent TMO Headlines - Updated September 25th

Sat, 9:04 PM
Can't Remotely Control Your HomeKit Devices? Enable iCloud Two-Factor Authentication
Fri, 9:43 PM
ScanSnap on Sierra Update: Fujitsu Warns of Data Loss In 'Specific Circumstances'
Fri, 9:21 PM
iOS 10: How to Disable (Some) Haptic Feedback on iPhone 7
Fri, 7:36 PM
Use the Digital Crown to Control Your Apple Watch Series 2 Screen Brightness
Fri, 7:03 PM
Install Secure XFINITY WiFi Profile On Your New iPhone
Fri, 6:29 PM
iOS 10: How to Optimize Downloaded Music Storage
Fri, 6:01 PM
iOS 10.0.2 Fixes Headphone Audio Controls, More
Fri, 5:33 PM
iOS 10: Apps are Gaining 3D Touch Widgets and They're Freakin Sweet
Fri, 5:33 PM
Use a Password Manager to Store Your Driver's License and Passport
Fri, 3:48 PM
This May be The 4K UHD Apple TV We've Been Waiting For
Fri, 1:50 PM
TMO Daily Observations 2016-09-23: Apple, AI, and Buying Tuplejump
Fri, 11:53 AM
Apple's Tuplejump Purchase Hints at a Smarter Siri and Echo Competitor
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!