Apple has a record $250 billion in the bank

Apple logoWhen it reports its quarterly financial results on Tuesday, Apple will likely have a quarter-trillion dollars in cash in the bank.

That's a greater hoard than any other company in recent US history, according to the Wall Street Journal, which reported the numbers on Sunday. For comparison, Apple's cash pile exceeds the market value of Walmart and Procter & Gamble. The sum is more than the foreign cash reserves of the UK and Canada combined.

Some 93 percent of the company's cash and other liquid assets are kept overseas. The Trump administration has proposed a tax holiday to encourage companies to bring money back to the US, as well as a lower corporate tax rate, fueling more speculation about how Apple will use its money. Apple CEO Tim Cook has said he's interested in moving some of the company's cash stateside if tax conditions are right.

Apple has a record $250 billion in the bank

One possibility is delivering a huge dividend to shareholders. Another is the possible acquisition of companies that are true giants in their own right. Capital managers suggested to the WSJ that Apple could buy a company like Tesla, valued at $51 billion, to push forward a self-driving car project. Another idea is buying Netflix, valued at $65 billion, to work on video-streaming and as a hedge against Amazon. An even more outlandish idea—still within the realm of possibility—would be to buy The Walt Disney Company, which has a market cap of more than $180 billion.

Apple also has around $88 billion in debt to fund shareholder payouts. But even subtracting that amount, Apple has by far more cash than any other company. The second richest tech company is Microsoft, which has $126 billion, not counting debt.

Another writer previewing Apple's earnings over the weekend, MarketWatch columnist Tim Mullaney, said that the "seemingly foolish call" he made two years ago—that Apple's stock could hit a value of $1 trillion by 2017—may well come to fruition. Apple set revenue and iPhone records last quarter, although growth in China slowed a bit.

Source: Ars Technica

Tags: Apple

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Galaxy Note10 really is built around a 6.7-inch display
You may still be able to download your content
Facebook, Messenger and Instagram are all going away
Minimize apps to a floating, always-on-top bubble
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
The 2001 operating system has reached its lowest share level
The entire TSMC 5nm design infrastructure is available now from TSMC
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (15)