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AAPL (or "What to do with $25 billion?")

Tuesday, October 21, 2008
As a bit of an Apple fan, I knew they were set to release their quarterly results in a conference call today. While the news was (as usual) exceptionally good, what I found interesting was the fact that Apple has about $25 billion dollars in cash laying around*.

So what does this mean?

Well, first off, it seems that Apple has a pretty sizable "rainy day" fund set aside. That's good. Secondly, however, it means that they could have a lot of fun.

Today, they could:
  • Purchase GM, Ford, and Chrysler LLC and still have about $12 billion left over.

  • Pay for a couple months of the war in Iraq.

  • Buy 1/28th of the latest federal bailout.

  • Buy each of the 15.9 million college students in the U.S. a new MacBook (and have money left over, assuming they get the education discount on the purchase.)

  • Finally, in a cruel twist of fate, they could simply purchase Dell and, if nothing else, shut it down.+
Of course, this is all well and good, but Bill Gates could still come up with more cash if he needed to...

*A look at the financial statements indicates that this is really cash, cash equivalents, accounts receivable, and short term investments. In other words, extremely current assets.
+ Let it be known that I noticed that they had more cash laying around than Dell's market capitalization. Once I was looking at Dell's page, however, I saw the link at Mac Daily News which outlined my thinking better than I could do it myself.


Blogger Kristin said...

The Macbooks! Buy the Macbooks!

I would fully back that decision.

11:24 PM, October 21, 2008  

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