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Apple Building Cash Reserves for 'Big, Bold' Moves

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Original poster
Apr 12, 2001
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Bloomberg reports on comments from Apple CEO Steve Jobs out of the company's shareholders meeting today regarding Apple's growing war chest of cash and the company's plans for it in the face of questions from shareholders. According to Jobs, Apple is building its reserves for future investments that would be calculated to return significant value rather than simply returning the money to shareholders.
Apple Inc. Chief Executive Officer Steve Jobs said he prefers having cash for investments to paying dividends or doing stock buybacks.

Apple is holding onto cash to take "big, bold" risks, Jobs said at the company's shareholder meeting today. The company had about $25 billion in cash and short-term investments as of December.
Apple Chief Operating Officer Tim Cook mentioned earlier this week at a Goldman Sachs conference that Apple has looked at large companies for acquisitions, but that none have been the right fit. Consequently, Apple has restricted itself to purchasing smaller companies, such as Quattro Wireless and Lala Media, primarily for their technology and talent.

Cook noted that remaining focused on a relatively small number of products and making them the best they can be is key to Apple's strategy and that it would not simply acquire another company to boost its bottom line. A report last month, however, claimed that Apple is becoming more serious about corporate acquisitions in the wake of Google's acquisition of AdMob, a company Apple had been looking at purchasing itself.

In other news from the meeting, all seven members of Apple's Board of Directors, including Jobs, were re-elected by shareholders.

Article Link: Apple Building Cash Reserves for 'Big, Bold' Moves
 

kolax

macrumors G3
Mar 20, 2007
9,181
115
Wouldn't surprise me if Apple bought Adobe. That'd be one way to kill Flash anyway ;)
 

kirky29

macrumors 65816
Jun 17, 2009
1,483
348
Lincolnshire, England
Buy: Dell, Adobe, Intel, Nvidia(?) & Yahoo.

I don't know how much that would cost! But it would be an impressive buy..... All in one day..

In all seriousness, I would like to know what Jobs is planning!
 

spinnerlys

Guest
Sep 7, 2008
14,328
7
forlod bygningen

ivladster

macrumors 6502
Jun 29, 2007
479
9
Washington DC
This is already been rumoured here:


In all seriousness, I'm eager to see what they are going to do with so much cash, they can buy a lot of companies from the amount of money they have saved.

Well it depends. Some huge companies cost Billions. And apple has only 25. So they could just buy one huge company, like Yahoo.
 

Macman08

macrumors newbie
Jan 22, 2009
16
2
we dont need big companies

Big companies (besides Apple) drive prices down.

When was the last time you went to a Mom&Pop computer store to buy a hard drive? Most people go to "big companies" (Amazon, Newegg, BestBuy, etc) to get the best deals.

As South Park pointed out in their 'Harbucks' coffee shop episode, these companies got big because they offer a better product at better prices.
 

tod

macrumors regular
Oct 3, 2009
158
92
Ohio
I'd much rather have Apple invest my tiny slice of that $40 billion for me, rather than take a dividend, pay taxes, and find some non-Apple thing to invest in. It's amazing that anyone even suggests Apple should pay a dividend!
 

drknow

macrumors newbie
Feb 25, 2010
1
0
cash for big purchases

Here's an idea; Apple buys Adobe, fixes flash on OS X and iPhone and then open sources the code. Add AIR development platform to mobileme and future cloud computing projects. Make after effects part of Final Cut Studio. Integrate photoshop elements into iphoto. etc.. etc..
 

hugodrax

macrumors 6502a
Jul 15, 2007
983
257
Rumor is Apple is Planning to Buy Microsoft with a Partner. Word is Intel/Apple partnership to purchase Microsoft along with some investors joining the pot.
 

notjustjay

macrumors 603
Sep 19, 2003
6,054
162
Canada, eh?
When was the last time you went to a Mom&Pop computer store to buy a hard drive? Most people go to "big companies" (Amazon, Newegg, BestBuy, etc) to get the best deals.

I think that might depend on what region you live in. Here, I know of a couple of "mom and pop" shops that I always go to first for OEM parts. I'm about to go to the one across the street from my workplace and walk out with a WD Scorpio Blue 640 gig laptop hard drive for $120 Cdn. By comparison, Newegg.ca sells the same drive for $129, plus $10 shipping, then I'd have to wait a few days.
 

Chaszmyr

macrumors 601
Aug 9, 2002
4,267
85
If Apple were to buy Adobe, I think it would be great for consumers. A better Mac version of Photoshop, a combination that provides the best of Aperture and Lightroom, the death of Flash, and the death of Acrobat Reader.

With that said, great for consumers and great for Apple are not necessarily the same thing.
 
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