Apple’s $137 billion cash pile: Here’s what the tech giant can do with it   Leave a comment


Apple Inc came under attack Thursday from an influential investor for its practice of stockpiling cash. Its hoard totaled $137 billion at the end of last year, and it keeps growing.Corporations normally don’t hoard cash the way Appledoes. They keep enough around for immediate needs, and either invest the rest in their operations or dole it out to shareholders in the form of dividends or stock buybacks. If they need more cash for, say, an acquisition, they borrow it.

Apple has never explained why it is salting away so much cash _other than to say the company is preserving its options.

The money belongs to shareholders, so Apple is limited in what it can legally do with it. Leaving legality aside, here are some things Apple could do with $137 billion:

Give every American a check for $437.

Buy 213 million iPhones at the average wholesale price, enough for every American who lives east of theMississippi River, plus Texas.

Based on market value at Thursday’s close, Apple could acquire Facebook, Groupon, LinkedIn, Netflix, Pandora, Research In Motion ( Blackberry), Yahoo, Yelp, Zillow and Zynga _and have more than $2 billion left to spare.

Create a stack of dollar bills 9,300 miles high, 38 times higher than the orbit of the International Space Station.

Buy 100,000 luxury Manhattan apartments, enough to house the population of Omaha.

Foot the bill for US federal spending on education for two years.

Give every Apple employee a bonus of $1.7 million.

Double US foreign economic aid to the developing world for three and half years.

Provide shareholders with a one-time dividend of $145 per share. (The stock closed Thursday at $456.95)


Posted February 8, 2013 by avinash2060 in Apple

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