Monday, May 01, 2017

Apple’s cash reserves now exceed a quarter of a trillion dollars – WSJ | 9to5Mac

A quote from the referenced WSJ article: "Apple Inc. is expected to report Tuesday that its stockpile of cash has topped a quarter of a trillion dollars, an unrivaled corporate hoard that is greater than the market value of both Wal-Mart Stores Inc. and Procter & Gamble Co. and exceeds the combined foreign-currency reserves held by the U.K. and Canada combined. [sic]"

"There have also been the usual suggestions of Apple buying Tesla and/or Netflix, investors noting that Apple could comfortably afford both companies.

Apple may, however, be holding fire to see whether the Trump administration makes good on campaign promises to allow overseas capital to be repatriated to the U.S. at a lower rate of tax. More than 90% of Apple’s cash is held outside the USA.

It was Steve Jobs who started the policy of stockpiling cash after the company had to be bailed out by a cash injection from Microsoft. He also believe that the company would grow its market value faster through investment in new product development than it would by buybacks and dividends. Under Cook’s leadership, the company has done both, returning more than $200B to shareholders whilst also increasing R&D spend."
Apple’s cash reserves now exceed a quarter of a trillion dollars – WSJ | 9to5Mac
Post a Comment