12/07/2007, 10:25am, EST
Friday, December 7th
Apple coffers filled to over $15 billion
Apple is hoarding more money than virtually any other tech company in the United States, regulatory findings show. The company currently holds $15.4 billion in unused reserves, more money than even IBM, Intel or Google. Only Microsoft and Cisco have a greater amount, and nearly a third of Apple's stockpile -- $5 billion -- was added in just the last year. This is in part because the company does not pay dividends, buy major companies, or repurchase much stock.
It is not clear what Apple is planning to do with the money, which would let it buy companies as big as TiVo or Circuit City and still have sizable funds leftover. Apple CFO Peter Oppenheimer has only explained that its reserves help finance bigger ventures, and that the company occasionally discusses various means of returning money to shareholders, such as the aforementioned share buyback.
Apple may well decide to acquire more small businesses, in line with previous acquisitions such as Emagic, Nothing Real and Zayante. It could alternately make strategic investments in other companies, as it did with Akamai and ARM Holdings. It is rumored though that Apple may be joining Google in bidding for the 700MHz wireless spectrum, which could allow it to build a data network fully independent of AT&T.
It is known that Apple intends to build a new campus near its Cupertino headquarters, designed to group together engineers otherwise based in isolated offices. The development could cost in excess of $500 million, in part because it has to demolish buildings already present at the site, and possibly because it may use a unique design to reflect Apple's perceived status.
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One of the reasons I bought AAPL back when you could have it for a song, was that the company - which, if IIRC - had about $4 billion cash on hand, which worked out to about $13 a share. So, I bought the company's goodwill and future earning potential for $6.50 a share, and the worst that could possibly happen would be that they'd liquidate and I'd lose 1/3 of my money.
(well I guess someone could have pissed all that money away, but that did not seem likely)
A 30% margin literally screams overpriced products.
What anti-trust laws? Last time I checked, there was very little overlap in their business models/money making schemes.
Others might not like it (like MS), but its not like Google would be merging with Yahoo or something.