Image credit: Barry Falls/BusinessWeek
Apple’s giant stash of cash is a constant source of speculation in the tech world. Now standing north of $25 Billion, Apple has the money to acquire all but a few hundred companies in the world, and it makes people nervous that the Cupertino Kings won’t snatch up someone big.
Our friend Brian over at Epicenter has an interesting piece of speculation, rating the most likely and least likely acquisition targets Apple could go after during the current downturn. It’s a thought-provoking read, and it’s accompanied by a really fun poll in which readers suggest who Apple should take on. The Dell entry is priceless.
For my part, I always think that the big questions about Apple’s cash and who the company will acquire tend to be misguided. Over its entire history, Apple has shown again and again that it will buy small organizations that possess a specific technology or capability that Apple lacks. That’s the story with NeXT, it’s the story with Logic, and it’s the store with PA Semi. Other than that, Apple invests in its own ideas and its own new efforts, because Steve Jobs believes the solutions Apple needs to triumph don’t exist yet. Apple spends way more time doing its own thing than it does snapping up outsiders.
And a portion of that $25 billion is going straight back into Apple’s future – the company still needs to build that brand new campus in Cupertino, right? Not to mention, new aluminum milling processes aren’t cheap to implement, either…
19 responses to “What Will Apple Do With All That Cash?”
“the store with PA Semi” mistake, you mean Story for the third time, not store
Segways for everyone…WOOHOO!!! Kidding ;)
Buy Sun. About 3 billion would do it given the number of shares out and the current price, about $4. Lotsa reasons because much of what they do intersect each other though Sun is on a bigger workstation scale. Also Apple would get control over the direction of ZFS.
R&D and Vertical Integration.
Current CPUs are actually old technology, and Apple knows they can’t rely on manufacturers to invest in a “foreign” technology that makes their product obsolete. We also know that Steve is never afraid of spending money on the next big thing, even if no one else believes in it. We’ve already seen they bought PA Semi (for iPhones?). They’re sure to be looking at another even less well known cutting edge design/manufacturer.
PA is just one example vertical integration is the best way to continue expanding and protecting your products. Based on their current products, the 800 pound gorilla is the wireless network. Apple knows the 3G network is problematic, never mind AT&T. $25 billion will go a long way to developing the “4G” (or 5G) platform. Think about what a wireless 1TB network means for iPhones, notebooks, and even desktops. Cable and DSL are dead – or they finally provide decent QoS. Apple gets a royalty for every phone. computer, Blackberry, and PDA that uses the technology.
If they have enough cash, they also buy up the bandwidth and own the network. They wholesale it out to AT&T, Sprint, and T-Mobile and make more money on every phone call. If they need to avoid antitrust, they create partnerships, and own 49% of all the bandwidth with a handful of companies.
The scary part of all this is that Steve may already be three steps ahead of any of these ideas. But if your not, Mr Jobs, Pete and Leander have my permission to give you my email. We’ll chat.
you know I think. Nobody. Seriously. Unless they need the company for skills or tech like with Semi they would keep the money in house.
I recently heard that the bulk of Apple’s retail workers, being part time, don’t have any health insurance. A friend told me after interviewing with them. Given that a serious bulk of the foreclosures in the country came from people that couldn’t pay that bill cause they used the money on health care costs, wouldn’t it be outstanding if Apple did something to help out that, according to them, priceless work force. We’re talking likely 75-80% of store staff. It doesn’t have to be total care like a full timer gets. but at least basic coverage for 2 dental checkups, 1 medical (with the appropriate female and male checks) each year, an eye exam every two and perhaps a flex fund of like $1000 to help cover fillings, etc. Oh and Rx coverage of some kind. Plus set up a fund for additional emergency help if they don’t have it.
doesn’t have to be the whole fund but it should be, in my opinion, the first thing ‘spent’.
you know I think. Nobody. Seriously. Unless they need the company for skills or tech like with Semi they would keep the money in house.
I recently heard that the bulk of Apple’s retail workers, being part time, don’t have any health insurance. A friend told me after interviewing with them. Given that a serious bulk of the foreclosures in the country came from people that couldn’t pay that bill cause they used the money on health care costs, wouldn’t it be outstanding if Apple did something to help out that, according to them, priceless work force. We’re talking likely 75-80% of store staff. It doesn’t have to be total care like a full timer gets. but at least basic coverage for 2 dental checkups, 1 medical (with the appropriate female and male checks) each year, an eye exam every two and perhaps a flex fund of like $1000 to help cover fillings, etc. Oh and Rx coverage of some kind. Plus set up a fund for additional emergency help if they don’t have it.
doesn’t have to be the whole fund but it should be, in my opinion, the first thing ‘spent’.
It will do nothing, accumulating interest in the bank. You know, the exact opposite of what the tanking companies did for which they received the Socialistic bailout after they whined and whined for financial aid because they failed at free enterprise. Apple is not socialistic. It’s also good at free enterprise, so it wants to maintain a large stock on hand just for such desperate times so that would not have to beg for a handout from the gov.
They should buy Tivo and Sony.
Build more stuff that ties you in.
I wish Apple would buy Adobe and bring FrameMaker back to the Mac.