How Apple Uses Its Cash to Keep Latest Technology for Themselves

apple had on $65 billion in cash , marketable securities @ end of last fiscal quarter, according company's quarterly filing (pdf). apple has cash, pointed out last month, cash on hand exceeds market capitalization of nokia, rim, htc , motorola mobility combined. if apple had no revenue, cash-on-hand sustain operations through middle of 2018, more 7 years.

what's apple doing cash? anonymous writer on q&a site quora opines company uses money small-scale strategic advantage, purchasing entire factories suppliers , using leverage guarantee supply of components apple -- , no 1 else:

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apple has access new component technology months or years before rivals. allows release groundbreaking products impossible duplicate. remember how year or after introduction of iphone, none of would-be iphone clones capacitive touchscreen work iphone's? wasn't software - apple has access new components earlier, before else in world can gain access in mass quantities make consumer device. 1 extraordinary example of aluminum machining technology used make apple's laptops - remains trade secret apple continues have exclusive access , allows them make laptops (for now) unsurpassed strength , lightness.

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this past january, apple coo tim cook said similar on q1 earnings call:

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on operational side of house, remember, we've historically entered agreements different people secure supply , other benefits. , largest 1 in recent past has been signed deal several flash suppliers @ end of 2005 totaled on $1 billion because anticipated flash become increasingly important across our entire product line , increasingly important industry. , wanted secure supply company, , think that, absolutely fantastic use of apple's cash. , more of these.

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it thought apple made 1 of these deals earlier year, agreeing spend $3.9 billion on lcd panels. rumored rim's ipad competitor, playbook, delayed because rim couldn't acquire enough lcd panels production. apple feels these payments "very strategic" , use of capital.

however, not impressed line of reasoning. 1 fund manager, christopher bonavico @ delaware investments, said apple is "destroying value" sitting on cash, , complained cash "earning near zero". bernstein research analyst toni sacconaghi said cash pile has "been beyond point of being rational while now."

apple, part, seems happy sit on cash, allows make large purchases when strategically necessary.

hat tip gizmodo, chart asymco

article link: how apple uses cash keep latest technology themselves

 

a company saving money.. how devastating..

 

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