Apple has always been notoriously tight-fisted when it comes to spending. As the world’s most valuable technology company by a long shot, there’s a ton of pressure on Apple to acquire competition and flaunt its $100 billion cash reserve.
At the Goldman Sachs Conference today, Cook noted that Apple has spent billions on acquisitions, in the supply chain, retail, and company infrastructure. “But yes, we still have a lot,” he said.
Cook asked for patience from the public and shareholders. He admitted that Apple has more cash than it needs to run its business. “We’re not going to have a togo party or do something outlandish,” he quipped. “We’re not letting it burn a hole in our pocket.” Apple CFO Peter Oppenheimer made the same statement during Apple’s last earnings call. The company’s most recent acquisition was NAND flash memory firm Anobit for an undisclosed amount.
AAPL stock recently surpassed $500 per share, valuing Apple’s market cap at $475 billion.
Cook called Apple’s spending “judicious” and “deliberate.” “We spend our money like it’s our last penny.”
Alex Heath is a journalist who works for Tech Insider. He’s the former co-host of The CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like “ICONIC: A Photographic Tribute to Apple Innovation.” He lives in Lexington, Kentucky. If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Follow him on Twitter.
10 responses to “Apple’s Approach To Cash: “We Spend Our Money Like It’s Our Last Penny””
typo: “flaunt its $400 billion cash reserve” should be $100 billion
I’ve always said this. Apple still operates (financially) like it did on those dark days in 1997.
there really is no reason for this kind of greed.
People need help now. We all know about the sad
working conditions of our earth brothers and sisters.
Please apple give it away to people that need it. you will surely
make a lot more in the near future. Help the world apple,please help fix it.
We should not depend on a great company, be it Apple or any other, to provide absolute support. That should rest on each and every person, not the government or business. Yes they can help, but people of the world need to do 98% of it.
Now back to the topic, I love that Tim says “like it’s out last penny.” Exactly every penny is allocated to something of value rather than wasted on whims and wishes. This statement is why Apple’s quality and consistency is unmatched in the industry.
Why can’t Cook’s statement be interpreted to mean that Apple has deliberately squeezed down the most vulnerable labor, which it depends on in China? These are the people who are really down to their last cents.
Are you for real?
Wow. Even an Android fan like me will say that Apple has done nothing wrong to make that money.
Man, it just goes to show you that you can’t please everyone. Wow.
Apple should do more to help the USA. Like move some manufacturing back. Yes, it will cost more, but American customers made what Apple is today.
Would you want to pay 50 dollars more for your iPhone? No? Exactly if they do bring manufacturing to the US they cannot keep up with consumer demands and everyone will bitch about prices being higher. You cannot keep everyone happy.
As a poor person, I would have no probably coming up with an additional $50 if it meant having jobs return to the US. We need those jobs for our own people. The more people work, the more money they can spend, thus helping sustain our economy. Outsourcing is great for businesses and it employes millions around the world, but those people deserve better lifestyles than the ones they are forced to have.