Thats how to run a company.

[The Hypno-Toad]

Hope this isn't a re to the post but I couldn't find a thread.

http://www.bbc.co.uk/news/technology-14340470

That's right folks, Apple currently have more money its bank account than the US government. Not bad for a company that was founded in 1976 and only began to show real profits in 1998.

And never forget Roland Wayne. One of the three founders of Apple, he sold off his holding in the company when it became incorporated in 1977.... for $2300....

[groak]

The Hypno-Toad said:

..... Apple currently has more money its bank account than the US government....

Doesn't everybody?

[Flintstone]

The Hypno-Toad said:

Hope this isn't a re to the post but I couldn't find a thread.

I think there's more money down the back of my sofa than in the US coffers.

[paddyhasneeds]

So, other than the risk of them suddenly tanking, why wouldn't I go out right now and buy a grand's worth of Apple shares?

[sjg]

paddyhasneeds said:

So, other than the risk of them suddenly tanking, why wouldn't I go out right now and buy a grand's worth of Apple shares?

Depends on whether you think their stock rise will keep going. There are only so many people to sell iPhones and iPads to, and given that they last very well, people seem to keep them for longer before replacing too. The low end of smartphones is being dominated by cheap Android handsets so a tricky market for Apple to compete in. Computer sales are going well but still a small proportion of the market.

Worth remembering too that the epic rise in stock price from single-figures to nearly $400 has been under Jobs' leadership. His health means he may not be around for much longer - Apple have been cagey on succession plans, if he was to pop his clogs do you think the price would stay up there (short or longer term) with Schiller or similar as the new CEO?

[Liokault]

But Apple can't just print its own apple money.

[Ross1988]

Liokault said:

But Apple can't just print its own apple money.

They effectively can, just release a new iPhone.

[Adrian W]

sjg said:

The low end of smartphones is being dominated by cheap Android handsets so a tricky market for Apple to compete in.

Not quite right, there is a definite backlash against Iphones, especially among the Geeky users. Android is starting to pick up momentum, it's a bit like Windows and Linux, it will start to hurt Apple.

[rpguk]

It's quite amazing really. But why are they holding so much cash in the bank rather then investing or paying out?

[EDLT]

rpguk said:

It's quite amazing really. But why are they holding so much cash in the bank rather then investing or paying out?

So that they can spend it when times are not so good. If they rely on the sales of the current generation of products to pay for the next generation then they will be screwed if the next iPhone (for example) is a flop.

[thinfourth2]

I wish apple would buy the UK and run it

[davepoth]

Ross1988 said:

Liokault said:

But Apple can't just print its own apple money.

They effectively can, just release a new iPhone.

The closest thing would be an apple bond issue. Probably coming up soon.

http://finance.yahoo.com/news/Google-bond-deal-set...

[Deva Link]

Adrian W said:

Not quite right, there is a definite backlash against Iphones, especially among the Geeky users. Android is starting to pick up momentum, it's a bit like Windows and Linux, it will start to hurt Apple.

Really? Last quarter they sold 20.34 million iPhones and 9.25 million iPads, increases of 142 percent and 183 percent, respectively, versus the same period last year.

They could have sold more, especially iPads, but couldn't make them any faster.

[200bhp]

Adrian W said:

Not quite right, there is a definite backlash against Iphones, especially among the Geeky users. Android is starting to pick up momentum, it's a bit like Windows and Linux, it will start to hurt Apple.

I think it's only the geeks that really believe that.

[The Hypno-Toad]

Deva Link said:

Really? Last quarter they sold 20.34 million iPhones and 9.25 million iPads, increases of 142 percent and 183 percent, respectively, versus the same period last year.

They could have sold more, especially iPads, but couldn't make them any faster.

Those are simply mind blowing figures.

[Guvna]

paddyhasneeds said:

So, other than the risk of them suddenly tanking, why wouldn't I go out right now and buy a grand's worth of Apple shares?

One of the biggest regrets I have of the last few years was closing a position I had in Apple.

I opened £2 per point at around $86 with the aim of keeping it open for as long as possible. Everybody was buying iPhones.. it was meant to be a long term trade! Bottled it after a relatively small move. It just kept rising and didn't go anywhere near my opening level. If I had kept it going all this time I would have made roughly £60,500 (minus any financing) from an investment of £1720

:facepalm:

[paddyhasneeds]

Guvna said:

One of the biggest regrets I have of the last few years was closing a position I had in Apple.

I'm afraid I don't really dabble enough to know what you mean by "closing a position" but the gist seems to be you'd have £65k instead of £1700?

So given a little spare cash now, think they're still a safe bet? My gut reaction is that their bubble isn't going to burst any time soon because they're arguably more about the brand/image than the the technology and it takes a lot to displace a brand.

[The Hypno-Toad]

Just a thought.

Anyone know where they do their recruiting in the UK?

[Guvna]

paddyhasneeds said:

I'm afraid I don't really dabble enough to know what you mean by "closing a position" but the gist seems to be you'd have £65k instead of £1700?

So given a little spare cash now, think they're still a safe bet? My gut reaction is that their bubble isn't going to burst any time soon because they're arguably more about the brand/image than the the technology and it takes a lot to displace a brand.

Should point out that I am no expert by any means

They are now the second most valuable company in the world. Can they keep up the same growth? I think they can because they are leaders in such a growth area. Their P/E ratio is around 15.5 which is what you expect from a mature company with low growth potential and it could be argued that Apple have many high growth areas they are present in and can continue to expand in. They also have a great history of creating their own unique services and technologies so it's easy to trust them on that side of things

Then again.. how much bigger can they actually get if they are already the second most valuable company in the world? Also who knows what will happen in the economy/general markets. Looking pretty shaky

I would not buy but it is still easy to argue a case why you should. But I would ignore everything I write because I pretty much get everything wrong

[jeff m]

Despite great returns there are some people (shareholders) that are bhing that with all that cash they should be paying a dividend.
Some people are just never happy.

They do need quite a bit of spare cash because the development cost on the next little lump of plastic they bring to the market is huge.

Buffet (Hathaway) has only ever paid one dividend.
Not sure this true but...When asked about the one off dividend he replied that the board must have approved while he was in the bathroom.

So having, or hanging on to vast amounts cash does seem to pay dividends ! if not literally