9 things Apple could do with $137B


Apple Inc. came under attack Thursday from an influential investor for its practice of stockpiling cash. Its hoard totalled $137 billion at the end of last year, and it keeps growing.

Corporations normally don’t hoard cash the way Apple does. They keep enough around for immediate needs, and either invest the rest in their operations or dole it out to shareholders in the form of dividends or stock buybacks. If they need more cash for, say, an acquisition, they borrow it.

Apple has never explained why it is salting away so much cash —other than to say the company is preserving its options.

The money belongs to shareholders, so Apple is limited in what it can legally do with it. Leaving legality aside, here are some things Apple could do with $137 billion:

—Give every American a check for $437.

—Buy 213 million iPhones at the average wholesale price, enough for every American who lives east of the Mississippi River, plus Texas.

—Based on market value at Thursday’s close, Apple could acquire Facebook, Groupon, LinkedIn, Netflix, Pandora, Research In Motion (Blackberry), Yahoo, Yelp, Zillow and Zynga —and have more than $2 billion left to spare.

—Create a stack of dollar bills 9,300 miles high, 38 times higher than the orbit of the International Space Station.

—Buy 100,000 luxury Manhattan apartments, enough to house the population of Omaha.

—Foot the bill for U.S. federal spending on education for two years.

—Give every Apple employee a bonus of $1.7 million.

—Double U.S. foreign economic aid to the developing world for three and half years.

—Provide shareholders with a one-time dividend of $145 per share. (The stock closed Thursday at $456.95)

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  • tea tinio

    another…. buy philippines

  • RomyLitz

    It means if Apple was established here in the Philippines 32 years ago, it is now owned by Marcos, no doubt about it.

  • Freddie Mariano

    Pay for my son’s schooling until he gets a doctorate degree!

  • tadasolo

    imagine this Apple has more cash reserve(137 Billion) than the Philippine Central Bank (82 Billion). There is something wrong

    • Mamerto

      “There is something wrong”
      With whom.?
      With Apple or with the Philippine Central Bank..?.?.?

    • RomyLitz

      Yep, something wrong with the Filipinos.

    • tea tinio


  • kwangkwang

    it’s for the warchest

  • J

    10. Apple just want to be ready to buy Samsung in case it is up for sale.

    • Mamerto

      On the contrary…,

      SAMSUNG is thinking of buying controlling interest into APPLE

    • Bench Lauron

      @ J, if you do some research… I think Mamerto is right… SAMSUNG is bigger than Apple Inc, in terms of Assets… Samsung has 300++ Billion Dollar in Assets as of 2011 while Apple has only 170+ Billion Dollar in Assets as of 2012… So try to figure it out… just a thought.. – data source from Wikipedia

      • J

        I think you have to par the companies in terms of market or net worth.
        Per Forbes Apple is more than $500B while Samsung is $162B.
        http //www forbes com/global2000/#p_3_s_a0_All%20industries_All%20countries_All%20states_

        If you compare profitability Apple is 3X more than Samsung. For $127B sales Apple pocket $33B, while Samsung $142Bs profit only $11.5Bs. Means Samsung has to work 3X to equal the competition.
        Assets? Apple has $5B more than Samsung.
        Just to be fair we are talking about Apple and Samsung Electronics right?

      • RomyLitz

        Agree !

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