Apple's $15 Billion Cash Reserve

MacRumors · Dec 7, 2007, 11:26 AM

A Fortune blog explores what Apple could be doing with their $15 billion cash reserve that they have accumulated in the past few years.

When asked about Apple's plans, chief financial officer Peter Oppenheimer simply stated that having a few billion on hand helps to fund big projects, though there reportedly had been discussion about buying back shares or issuing dividends to Apple stock holders.

Apple could use the money to make strategic acquisitions. In the recent past, Apple has acquired a number of companies, including PowerSchool, Emagic, Nothing Real, Zayante, and Fingerworks. Apple also has plans to expand into a new campus which could take up to $500 million to fund.

Article Link

Grimace · Dec 7, 2007, 11:30 AM

"Apple could buy TiVo, NetFlix, and Circuit City and still have cash left over." Hopefully only buying CC to shut them down, I've had miserable experiences there.

Take the $15B and buy something a little more fun, like a new Mac Pro for me!

Spanky Deluxe · Dec 7, 2007, 11:34 AM

And in other news, Apple launches first manned mission to Mars, claiming the planet to be its own and renaming it Planet Apple.

MrCrowbar · Dec 7, 2007, 11:36 AM

Quote:

Originally Posted by Spanky Deluxe

And in other news, Apple launches first manned mission to Mars, claiming the planet to be its own and renaming it Planet Apple.

Also, put some majo explosives there to make it looks like the company logo.

ifjake · Dec 7, 2007, 11:36 AM

how much is NBC-Universal worth?

Jim Campbell · Dec 7, 2007, 11:38 AM

Quote:

Originally Posted by Macrumors

Apple could use the money to make strategic acquisitions.

By my reckoning, they could blow the lot on a controlling share of Adobe ...

Cheers

Jim

Squonk · Dec 7, 2007, 11:38 AM

Umm, buy a couple of really cool domain names?

No wait, I got it! Buy a black t-shirt and blue jean factory. Yeah, that's the ticket! And pay the workers a fair wage!

Grimace · Dec 7, 2007, 11:39 AM

I'd jump all over Adobe. That is actually the best thing Apple could do for the software world.

freeny · Dec 7, 2007, 11:51 AM

Quote:

Originally Posted by Spanky Deluxe

And in other news, Apple launches first manned mission to Mars, claiming the planet to be its own and renaming it Planet Apple.

iWorld™

Cloudsurfer · Dec 7, 2007, 11:51 AM

Can't they buy Microsoft?

Grimace · Dec 7, 2007, 11:52 AM

Actually, I'd buy up Sirius/XM -- have tunes playing and then have a "buy now" option from iTunes!

dsswarehouse · Dec 7, 2007, 11:52 AM

They could buy Avid Technology, Inc. and completely control the professional audio and video market

TechnoLawyer · Dec 7, 2007, 11:53 AM

Quote:

Originally Posted by Grimace

"Apple could buy TiVo, NetFlix, and Circuit City and still have cash left over."

Exhibit A as to why journalists should not run companies.

olliebraves20 · Dec 7, 2007, 11:53 AM

Quote:

Originally Posted by Grimace

I'd jump all over Adobe. That is actually the best thing Apple could do for the software world.

I agree with you there....how nice would that be.....

mclihah2 · Dec 7, 2007, 11:55 AM

Maybe they could stop being so greedy with the iPhone, and let people buy it without having to be tied into a contract that they don't want.

Hell, they'd probably make more money with it, due to volume sales!

lazyrighteye · Dec 7, 2007, 11:55 AM

That $100 store credit for early iPhone adopters now seems even more silly.

Jprice02 · Dec 7, 2007, 11:56 AM

"700 mhz auction, expected to generate some $15 billion in FCC fun-money, draws near."

notjustjay · Dec 7, 2007, 11:56 AM

Quote:

Originally Posted by Squonk

Umm, buy a couple of really cool domain names?

No wait, I got it! Buy a black t-shirt and blue jean factory. Yeah, that's the ticket! And pay the workers a fair wage!

Sweet! A Steve Jobs clothing label!

Cloudsurfer · Dec 7, 2007, 11:56 AM

Quote:

Originally Posted by mclihah2

Maybe they could stop being so greedy with the iPhone, and let people buy it without having to be tied into a contract that they don't want.

Hell, they'd probably make more money with it, due to volume sales!

That would totally eat iPod touch sales.

shov · Dec 7, 2007, 11:57 AM

or buy up the wireless spectrum so they don't have to deal with phone companies...

amac4me · Dec 7, 2007, 11:58 AM

Adobe has a market cap of $25 Billion, so Apple won't be buying them. Besides, Apple already has a number of competing software applications.

Apple should use the resources to expand their engineering and developer base as a means to push the innovation envelope. The Leopard delay earlier this year was a prime example of Apple having to shift developers away from Mac OS X (at least that the excuse they gave).

Apple is essentially printing cash these days so no need to make any major changes. If there is a strategic partnership or buyout option of a company that could help Apple down the road, I'm all for it. Right now, I don't think Apple needs to rush into anything.

bryanc · Dec 7, 2007, 12:01 PM

Quote:

Originally Posted by Jprice02

"700 mhz auction, expected to generate some $15 billion in FCC fun-money, draws near."

Beaten to it. This is what strikes me as their best investment. Even if it means having to partner with Google to build it out after they buy it.

Although I wouldn't mind seeing Apple making a major (i.e. controlling) investment in Adobe either.

Cheers

IJ Reilly · Dec 7, 2007, 12:01 PM

Quote:

Originally Posted by Grimace

I'd jump all over Adobe. That is actually the best thing Apple could do for the software world.

Buying a large, existing company with a distinct corporate culture such as Adobe (even assuming a friendly buyout), is always a dicey proposition. I'm also not sure what Apple would gain by owning Adobe.

For sure I agree with the article. Apple needs to do something with this cash hoard other than continue to hoard it. A dividend would be an appropriate start.

Kaspers · Dec 7, 2007, 12:02 PM

buy those apple shares that microsoft has back.. thats 49% or so..

juanm · Dec 7, 2007, 12:02 PM

Improve their quality control system... And spend more in advertising in Europe. Ignorance about Macs is getting really annoying.

Edit: and by they way, Apple Photoshop sounds good...

Dec 7, 2007, 11:26 AM	#1
MacRumors macrumors bot Join Date: Apr 2001	Apple's $15 Billion Cash Reserve A Fortune blog explores what Apple could be doing with their $15 billion cash reserve that they have accumulated in the past few years. When asked about Apple's plans, chief financial officer Peter Oppenheimer simply stated that having a few billion on hand helps to fund big projects, though there reportedly had been discussion about buying back shares or issuing dividends to Apple stock holders. Apple could use the money to make strategic acquisitions. In the recent past, Apple has acquired a number of companies, including PowerSchool, Emagic, Nothing Real, Zayante, and Fingerworks. Apple also has plans to expand into a new campus which could take up to $500 million to fund. Article Link

Dec 7, 2007, 11:30 AM	#2
Grimace Contributor Join Date: Feb 2003 Location: with Hamburglar.	"Apple could buy TiVo, NetFlix, and Circuit City and still have cash left over." Hopefully only buying CC to shut them down, I've had miserable experiences there. Take the $15B and buy something a little more fun, like a new Mac Pro for me! __________________ Canon 1Ds Mk III • Canon 5D MkII 16-35mm f/2.8L II • 24-70mm f/2.8L • 70-200mm f/2.8L IS 50mm f/1.2L • 85mm f/1.2L • 135mm f/2L • 300mm f/2.8L IS

Dec 7, 2007, 11:34 AM	#3
Spanky Deluxe macrumors Demi-God Join Date: Mar 2005 Location: London, UK	And in other news, Apple launches first manned mission to Mars, claiming the planet to be its own and renaming it Planet Apple. __________________ "No, I'm from Iowa, I only work in outer space."

Dec 7, 2007, 11:38 AM	#7
Squonk macrumors 65816 Join Date: Mar 2005	Umm, buy a couple of really cool domain names? No wait, I got it! Buy a black t-shirt and blue jean factory. Yeah, that's the ticket! And pay the workers a fair wage! __________________ iSwitched in 1988 MP quad 2.8 (4GB/1.5TB/ATI 2600), iPhone, iPods

Dec 7, 2007, 11:39 AM	#8
Grimace Contributor Join Date: Feb 2003 Location: with Hamburglar.	I'd jump all over Adobe. That is actually the best thing Apple could do for the software world. __________________ Canon 1Ds Mk III • Canon 5D MkII 16-35mm f/2.8L II • 24-70mm f/2.8L • 70-200mm f/2.8L IS 50mm f/1.2L • 85mm f/1.2L • 135mm f/2L • 300mm f/2.8L IS

Dec 7, 2007, 11:36 AM	#5
ifjake macrumors 6502a Join Date: Jan 2004	how much is NBC-Universal worth?

Dec 7, 2007, 11:51 AM	#10
Cloudsurfer macrumors 6502 Join Date: Apr 2007 Location: Netherlands	Can't they buy Microsoft? __________________ MacBook Pro 2.2 \| iPhone 3G 8 GB

Dec 7, 2007, 11:52 AM	#11
Grimace Contributor Join Date: Feb 2003 Location: with Hamburglar.	Actually, I'd buy up Sirius/XM -- have tunes playing and then have a "buy now" option from iTunes! __________________ Canon 1Ds Mk III • Canon 5D MkII 16-35mm f/2.8L II • 24-70mm f/2.8L • 70-200mm f/2.8L IS 50mm f/1.2L • 85mm f/1.2L • 135mm f/2L • 300mm f/2.8L IS

Dec 7, 2007, 11:52 AM	#12
dsswarehouse macrumors newbie Join Date: Oct 2005	Avid Technology, Inc. They could buy Avid Technology, Inc. and completely control the professional audio and video market

Dec 7, 2007, 11:55 AM	#15
mclihah2 macrumors newbie Join Date: Sep 2006	Maybe they could stop being so greedy with the iPhone, and let people buy it without having to be tied into a contract that they don't want. Hell, they'd probably make more money with it, due to volume sales!

Dec 7, 2007, 11:55 AM	#16
lazyrighteye macrumors 6502a Join Date: Jan 2002 Location: Denver, CO	That $100 store credit for early iPhone adopters now seems even more silly.

Dec 7, 2007, 11:56 AM	#17
Jprice02 macrumors newbie Join Date: Nov 2006	Not Likely, but would be cool!!! "700 mhz auction, expected to generate some $15 billion in FCC fun-money, draws near."

Dec 7, 2007, 11:57 AM	#20
shov macrumors member Join Date: Dec 2006 Location: Bristol, UK	or buy up the wireless spectrum so they don't have to deal with phone companies...

Dec 7, 2007, 11:58 AM	#21
amac4me macrumors 65816 Join Date: Apr 2005	Adobe has a market cap of $25 Billion, so Apple won't be buying them. Besides, Apple already has a number of competing software applications. Apple should use the resources to expand their engineering and developer base as a means to push the innovation envelope. The Leopard delay earlier this year was a prime example of Apple having to shift developers away from Mac OS X (at least that the excuse they gave). Apple is essentially printing cash these days so no need to make any major changes. If there is a strategic partnership or buyout option of a company that could help Apple down the road, I'm all for it. Right now, I don't think Apple needs to rush into anything. __________________ Switch To A Mac http://switchtoamac.com

Dec 7, 2007, 12:02 PM	#24
Kaspers macrumors regular Join Date: Oct 2007 Location: the Netherlands	buy those apple shares that microsoft has back.. thats 49% or so.. __________________ MacRumors: Forums

Dec 7, 2007, 12:02 PM	#25
juanm macrumors 6502a Join Date: May 2006 Location: Spain	Improve their quality control system... And spend more in advertising in Europe. Ignorance about Macs is getting really annoying. Edit: and by they way, Apple Photoshop sounds good...

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode