Apple's $15 Billion Cash Reserve

[MacRumors]

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]

"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]

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

 

[MrCrowbar]

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]

how much is NBC-Universal worth?

 

[Jim Campbell]

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]

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]

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

 

[freeny]

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]

Can't they buy Microsoft?

 

[Grimace]

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

 

[dsswarehouse]

Avid Technology, Inc.

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

 

[celavato]

"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]

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]

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]

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

 

[Jprice02]

Not Likely, but would be cool!!!

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

 

[notjustjay]

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]

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]

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

 

[amac4me]

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]

"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]

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]

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

 

[juanm]

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...