Why Apple Needs Its $137 Billion Cash Hoard



Yesterday, there was a bit of a hub-bub about Apple’s enormous $137 billion cash hoard, after David Einhorn, the head of Greenlight Capital, sued Apple over a plan to discard preferred stock and pressed Apple to give a significant chunk of the cash hoard directly to investors. It was such a big deal that Apple felt as if it were forced to respond.

Is there a good reason for Apple to be keeping $137 billion in the bank? Yup, and if you want to know why, all you have to do is look at Dell.