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Apple to Host Conference Call Monday Concerning its Near $100 Billion Cash Balance

ArztMac said:
What do you think a dividend payment will do to the stock price?

Any business decision that DOESN'T drive stock price is a bad business decision. Remember, Apple's prime objective as a company is to generate value for its shareholders. That is their number 1 priority. Everything else is marketing fluff talk.

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Of course, why not. Everybody can purchase Apple shares, even Apple themselves.
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Once you have the money, it should not be the only thing you care about. Think about your Job. Is everything you do money driven? I hope not.

Regarding Apple I have no idea what they do, however I hope they will stay successful and keep making me happy with great products and services in the future!
 
Medical (vaccine, rx drugs) and tech army.
Imagine a "New Vaccine" Keynote, lines of people to receive the last vaccine.
 
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B179 Safari/7534.48.3)

Buy or make their own carrier.
 
xinu said:
-25% retail price from MacBookPros would mean +200% increase in sells !

P R O F I T
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Uh... so, assuming MBP's are between 35 and 40% profit margin...

You're suggesting a 25% reduction in price would DOUBLE sales?

Even if that wild speculation would be true (it wouldn't even be close)... this would cut margins to less than half. So...

P R O F I T is not even close to what that would mean. It would REDUCE profits. Again... assuming a DOUBLE in unit sales. So... no... this is not a good idea at all.
 
Buy a Island!

They should buy an island and start a country and call it the Socialist Republic of Apple(SRA)!

What, to crazy? Maybe start a space program?!?!
 
bobringer said:
Uh... so, assuming MBP's are between 35 and 40% profit margin...

You're suggesting a 25% reduction in price would DOUBLE sales?

Even if that wild speculation would be true (it wouldn't even be close)... this would cut margins to less than half. So...

P R O F I T is not even close to what that would mean. It would REDUCE profits. Again... assuming a DOUBLE in unit sales. So... no... this is not a good idea at all.
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If it increased sales it would reduce profit margins not profit.
 
bobringer said:
Uh... so, assuming MBP's are between 35 and 40% profit margin...

You're suggesting a 25% reduction in price would DOUBLE sales?

Even if that wild speculation would be true (it wouldn't even be close)... this would cut margins to less than half. So...

P R O F I T is not even close to what that would mean. It would REDUCE profits. Again... assuming a DOUBLE in unit sales. So... no... this is not a good idea at all.
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But more AppStore users will eventually pay off the reduced margins?
Business is more complicated today with computers also.
Some day Apple will give for FREE their physical products, all of them, but you have to sign up with AppStore and give them your life :p
 
Peace said:
If it increased sales it would reduce profit margins not profit.
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Did you follow my math?

Profit margins would be cut to less than half.

So... Yes... doubling of sales with less than half the profit margin would absolutely reduce profit.
 
Peace said:
If it increased sales it would reduce profit margins not profit.
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If they lower their profit margin -10% and pump up sales 100% it is pure profit and nothing more to it.

Profit is profit. Percentages dont mean nothing, cash does.
 
xinu said:
If they lower their profit margin -10% and pump up sales 100% it is pure profit and nothing more to it.

Profit is profit. Percentages dont mean nothing, cash does.
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Ok, can we go back to the original post? I was responding to someone that made very specific points with very specific percentages. Math should not be this hard.

He said that Apple should reduce the price by 25%, which would double sales and that would increase profit. Lets start with the assumption that Apple's profit margins are 40% on the MBP (they are less than that, but I'll be generous). And lets scale it down to make the math simple (since that seems required at this point). Lets make this based on a $10 current sale price and Apple sells 100 MBP's.

So, that would mean current revenue would be $1000. A 40% profit margin would be $400 profit.

Now if we cut the price to $7.50 and doubled sales to 200 units, that would give us $1500 in total revenue. 100% of the cost reduction comes directly from the bottom line. So our profit margin has been reduced to 15% (40-25 = 15). 15% of $1500 is $225.

$225 is less than $400, right? If you go from $4.00 profit per unit to $1.50 profit per unit... and sell twice as many units... you still get less money.

#smh
 
Conference call = Listen in if you want to, but we don't really care

It's not going to be anything interesting or major, if it was it would a bigger announcement

Dividends or something similar
 
jwdsail said:
I'd like to see Apple use some of their cash to secure mineral mining rights for the rare-earth raw materials they need to produce pretty much all of their products.
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Please. There are plenty of rare earth materials all over the world. No problem mining as much as is needed for anything you want. The problem is turning the raw materials into something that is usable, which is a process that creates a lot of pollution, and can only be done cheaply in a place that accepts that amount of pollution. Guess where that place is.

All that lets say the USA would need to produce as much rare earth materials as China is some law changes and accepting some major damage to the environment in the USA.
 
They are going to buy a small country and consolidate their manufacturing there...
 
Abazigal said:
The money would be subject to tax the moment it enters american soil.

So the problem would be spending it. What's the point of holding on to all that cash if you can never spend it?
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They could buy companies that are based outside of US jurisdiction and would then not be subjected to tax in the US. So say they had $30+ billion saved in China then their options would be almost endless.
 
Apple Big Mac said:
Agreed. It will be disappointing if the only announcement is a dividend. I'm pro-dividend but I want to also see that Apple has a lot more up its sleeve than that.
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I don't think Steve Jobs would do dividends, he had better visions than that. However, with Tim Cook, you don't know. Depending on what they do with the cash, it will start to give a signal where Apple is headed. Could go downhill from here...
 
I'm thinking/hoping they either purchase or create a 4g service. Think about how well it could work out for them. Free uncapped Internet everywhere for your iPhone, iPod touch, or iPad anywhere ou go - increases the purchases you make via iTunes and the app store. Then they could roll it out to the MacBook air product line so you can use Internet for free anywhere you go, thus increasing the iTunes and app store purchases made once again. This would ALSO get more people to buy apple products. Also, by not offering call features they wouldn't be shutting out AT&T or Verizon. This would all stay within the realm of what apple believes, more great features to the customer for their great products all while increasing sales for the services that really make them money - iTunes and the app store! :)

- Joe
 
Mackan said:
I don't think Steve Jobs would do dividends, he had better visions than that. However, with Tim Cook, you don't know. Depending on what they do with the cash, it will start to give a signal where Apple is headed. Could go downhill from here...
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The thing is, apple isn't exactly doing anything useful with all that money. Not giving out dividends would be a good course of action if the company was undertaking some development which required every last cent it had.

However, barring the occasional acquisition here and there, most of that money is just collecting dust in a bank. Sure, apple needs money for daily operations, but these costs are likely loose change compared to its reserves.:confused:
 
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