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Unread 07-21-2011, 02:29 PM
 
Location: Oakland, CA
21,269 posts, read 22,962,802 times
Reputation: 8795
Default California-based Apple's "Dilemma", What to do with $76 Billion

If only our state govt were as cash rich as some of our huge companies. I remember just a few quarters ago, Apple had $40B.

Apple's $76 Billion Question: What to Do With the Cash? - DailyFinance
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Unread 07-21-2011, 08:00 PM
 
455 posts, read 352,344 times
Reputation: 390
Apple would use the money better than the state. Should be interesting to see what they do with the cash.
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Unread 07-22-2011, 03:36 AM
 
Location: AK, CA, FL, WA, AUS
4,393 posts, read 1,994,043 times
Reputation: 2346
My stock portfolio consists 100% of AAPL stock and options. I'm glad they have been saving their cash, instead of buying small companies left and right. It's allowed them to keep their focus on their products and business model.

However, they are considering making an offer for Hulu. There are a few other companies that have shown interest in purchasing Hulu, such as GOOG, MSFT, YHOO. I hope they don't. Hulu will need to be rebuilt from scratch to have a chance to compete with NFLX. I tried buying a Hulu subscription and HATED it. If AAPL wanted to make a larger investment to purchase NFLX, now that would be interesting.
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Unread 07-22-2011, 05:25 AM
 
Location: Everywhere and Nowhere
14,147 posts, read 10,687,384 times
Reputation: 6212
They could buy back all their stock. That would present an interesting scenario: a company that completely owns itself. Are there any corporations out there that have no shareholders (and I mean the company owns all the shares, not an individual)? In that case, who would management answer to?
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Unread 07-22-2011, 10:11 AM
 
Location: Central Texas
9,235 posts, read 7,358,665 times
Reputation: 4993
Quote:
Originally Posted by CAVA1990 View Post
They could buy back all their stock. That would present an interesting scenario: a company that completely owns itself. Are there any corporations out there that have no shareholders (and I mean the company owns all the shares, not an individual)? In that case, who would management answer to?
They can't afford to buy back all of their stock. It would cost over $350B to buy all outstanding shares of AAPL.

There are a number of privately held tech companies. The largest that comes to mind is SAS - a business software company based in Cary NC. I don't think it really is a negative that they don't answer to shareholders. They are less subject to quarterly earnings pressure for starters - which frees them to make better long term decisions.
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Unread 07-22-2011, 10:20 AM
 
11,698 posts, read 18,437,989 times
Reputation: 6742
Would you be as proud of their $76B if they sold gasoline instead of Chinese phones?
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Unread 07-22-2011, 03:09 PM
 
Location: San Jose, CA
5,442 posts, read 3,337,317 times
Reputation: 2905
They're going to build a big donut in Cupertino, replacing their present nearby headquarters at One Infinite Loop.
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Unread 07-22-2011, 03:16 PM
 
Location: Business ethics is an oxymoron.
517 posts, read 450,007 times
Reputation: 861
Quote:
Originally Posted by EscapeCalifornia View Post
Would you be as proud of their $76B if they sold gasoline instead of Chinese phones?
Why not? Business is business. Whatever you are invested in, if they are turning a profit, that's good enough. Anyone who complains to the oil companies about their "obscene" profits would be best advised to join the party by investing in some shares and reaping some of that cash too. I guess a lot of it depends on what side of the portfolio you are on.
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Unread 07-23-2011, 09:49 PM
 
Location: anywhere but Seattle
1,082 posts, read 444,499 times
Reputation: 902
Quote:
Originally Posted by 18Montclair View Post
If only our state govt were as cash rich as some of our huge companies. I remember just a few quarters ago, Apple had $40B.

Apple's $76 Billion Question: What to Do With the Cash? - DailyFinance
If only our state govt were as wise with the money it earns as some of our huge corporations.
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