Apple is now Debt Free

Discussion in 'MacRumors News Discussion (archive)' started by MacRumors, Feb 18, 2004.

  1. macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    99mac.se publishes an internal memo from Steve Jobs to Apple employees today.

    According to the Memo, Jobs states that "Today is a historic day of sorts for our company." Apple used $300 million in cash to pay off the rest of their debt, and is now a debt-free company. A big turnaround from over $1 billion in debt in mid-1997. Also noted in the memo is that Apple currently has $4.8 billion in the bank at this time.
     
  2. macrumors member

    Joined:
    Jan 28, 2004
    #2
    Awesome!

    Bodes well for the future, here's to another nearly 30 years.
     
  3. macrumors 6502a

    yoman

    Joined:
    Nov 11, 2003
    Location:
    In the Bowels of the Cosmos
    #3
    good

    now if only Apple would try to get us all in debt with new and incredible computers...

    We're still waiting :)
     
  4. macrumors 68040

    Grimace

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    with Hamburglar.
    #4
    it will be interesting to see how investors look at this. Stock prices for Apple have never been all that great.
     
  5. macrumors regular

    Joined:
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    Location:
    North America
    #5
    Re: Apple is now Debt Free

    An internal Apple email from Steve Jobs says that Apple has paid off their $300 million debt. Apple is now debt free.

    The email was displayed last night at a MUG meeting by an Apple employee.
    The employee was thrilled.

    I would stay tuned to Apple news releases for confirmation.

    Not yet posted at http://www.apple.com/hotnews/ (Feb 18, 2004 05:57 AM PST)
     
  6. macrumors 68040

    gwuMACaddict

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    washington dc
    #6

    this has to help
     
  7. macrumors 68000

    russed

    Joined:
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    Location:
    London, England
    #7
    lets hope they spend even more money on R&D now and churn out even more products!
     
  8. macrumors regular

    Joined:
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    Location:
    St Helens, UK
    #8
    All i gotta say is congrats to them, not alot of companies can pull off having no debt at all...
     
  9. macrumors regular

    Joined:
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    Location:
    Minneapolis, MN
    #9
    this is great! While all the other computer companies struggle to turn a profit in the current market (Dell excluded), Apple is doing well. Looks like we may see another 20 years of Macintosh, even though Apple is perpetualy going out of business in the eyes of alot of people.:rolleyes:
     
  10. macrumors member

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    Location:
    Iowa
    #10
    Smart business move!!
     
  11. Administrator emeritus

    Mudbug

    Joined:
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    Location:
    North Central Colorado
    #11
    Holy crap that's a lot of money. Nice to see a corporation, regardless of who it is, stand up for itself and get in the black. Bleeding red ink is not a good way to be. This should help squelch the "Apple Death Knell" as it's come to be known.
     
  12. macrumors regular

    Joined:
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    Location:
    North America
    #12
    Re: Re: Apple is now Debt Free

    Yes, 99mac.se, that's the email that was shown at the MUG meeting.
    =-=
    JJ
     
  13. macrumors 601

    virividox

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    Manila - Nottingham - Philadelphia - Santa Barbar
    #13
    debt is a killer
    at least we know apple wont be dying from debt if its true
     
  14. macrumors newbie

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    Feb 18, 2004
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    Reading, Pa
    #14
    Does this mean cheaper computers now? - That would be nice! :D
     
  15. macrumors 6502a

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    Baltimore & NYC
    #15
    Heheh I wish I was debt-free -- between 3/4 of my car left to pay off, about $4K in credit card debt accumulated in college and my post-college summer non-employment period, and over $1K I owe my mom on my iBook G4 -- sometimes it really hits you. At least I don't have college loans, which means I am actually a bit _ahead_ of the game, compared to most other Americans my age with a college education. Kind of boggles the mind.

    This is extremely positive news for Apple -- there is nothing held over this company's proverbial head. And with that much cash in the bank, they could literally weather a depressionary period, if things ever came to that. That's good for me, as I have decided to make Macintosh Technology the thrust of my career path for the time being. :)
     
  16. macrumors newbie

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    #16
    great work, apple! very few large companies can pull off being debt free!
     
  17. macrumors regular

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    Location:
    USA
    #17
    Darn. Apple just missed out on buying AT&T Wireless and going right back into debt. The price tag was only....what....44 billion.

    What's the interest income on 4.8 billion?
     
  18. macrumors regular

    Joined:
    Nov 25, 2003
    #18
    debt to equity ratio is just one of many factors that impact the value of stock. while its true that this can't hurt, that doesn't imply that it will help. in order to see a surge in stock value apple will need to hold on to the strong position they have in online music (possibly movie) distribution, maybe even aquire a record label. granted if they did that the beatles would be sure to have a negative impact on their stock.

    bottom line: apple stock is not a major preformer because apple represents a very successful but niche company.
     
  19. macrumors regular

    jwhitnah

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    WA
    #19
    Happy days!
     
  20. macrumors 6502a

    NusuniAdmin

    Joined:
    Nov 19, 2003
    #20
    hmmmmmm cool.....

    Cool. Come on new pmacs, come on!
     
  21. macrumors regular

    agentmouthwash

    Joined:
    Aug 15, 2003
    #21
    This is great news for Apple. I'm doing my part helping them out by buying music from itunes and all my crap (wires, software) from my local Apple Store.

    I want this company to be around. Hopefully this will reflect the stock price.
     
  22. macrumors member

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    Location:
    Colorado
    #22
    Re: good

    Right there with ya! :D
     
  23. macrumors P6

    wdlove

    Joined:
    Oct 20, 2002
    #23
    Congratulations to Steve and his management team for their leadership of Apple. This is trully a momenteous day, the ability to pay off $300 million in debt. Apple is now "Debt Free." :)
     
  24. macrumors 65816

    Ja Di ksw

    Joined:
    Apr 9, 2003
    #24
    I have to agree, people are (hopefully) going to be willing to buy more apple stock now that they are out of debt. I can see this raising the value of the stock overall, though I wouldn't go so far as to say that this will make the price will start jumping higher and higher now.
     
  25. macrumors regular

    Joined:
    Aug 4, 2003
    Location:
    New Jersey
    #25
    This has nice symbolic value, but has nothing do to with whether Apple is or was bleeding red ink or not. 300 million worth of debt is not a big deal when you've got 4-5 billion in the bank.

    This also has absolutely zero impact on Apple's ability to deliver product, or spend more on R&D, or anything. That is why Jobs said a historic day "of sorts." So let's not get too excited here.

    But it is nice anyway.

    [aside: I wonder if and when Apple is going to do something significant with its huge cash cache. I know they are very protective of it, and that's fine, but at some point you'd think they could use it to their advantage, beyond just generating investment income.]
     

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