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Apple Has $12 Billion to Spend Where will Apple's money go?	By Ilinca Strobel, Editor, Software Reviews 3rd of March 2007, 11:33 GMT Adjust text size:


There was a time when Apple didn't do so well, financially. In the mid '90s, they barely kept it moving. This is not such a time for Apple, not by far. Mac sales are steadily growing, iPods sell like crazy (COO tim Cook confirmed the 90 million figure) and the Apple TV and highly-controversial iPhone will bring the Cupertino-based company other piles of cash. They're doing very well and things will only get better. But how much money does Apple really have? Well, the last time they've reported their earnings, the sum rounded up at about $12 billion in cash and short-term investments. That's a lot of money to keep under the mattress and it's reportedly growing at a rate of 1 billion per quarter. So Apple needs to invest. Arik Hesseldahl, reporter at BusinessWeek, wrote about how should Apple wisely use this money to ensure it will keep coming. The reporter says they should launch a venture capital fund and encourage their growing ecosystem to grow even more. He thinks they should invest in third-party software and games development companies, in the market growing around their products, enhancements of iPods, iPhone and Apple TV. The reporter names several IT giants that took the step and invested, to only gain on the long-term. Intel, Qualcomm, Motorola were the companies mentioned, and they all could be an example to be followed. Hesseldahl also talks about the possibility of big acquisitions, but this would not be Apple-like. They usually acquire small companies that could integrate beautifully in internal projects. "I look around the digital landscape, I don't see a company that Apple has any compelling reason to acquire", says the reporter. At the moment, Apple can do just about anything with its money: launch a venture capital fund, acquire companies, pay dividends or buy some of its stock. I trust Jobs and his team of financial consultants will make the best of their growing $12 billion; if the Apple CEO can't plan business investments, I don't know who can.

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invest | acquire | stock

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