What should Apple do with its $15 billion (and rapidly growing) cash hoard?
Friday, December 07, 2007 - 09:46 AM ESTApple’s $15.4 billion stash is larger than IBM's, Hewlett-Packard's, Intel's, and Google's, putting the Mac, iPod, and iPhone maker into "the elite ranks of well-heeled Fortune 500 tech companies," Jon Fortt reports for Fortune.
"So what does CEO Steve Jobs have in mind for all those greenbacks?" Fortt asks.
"If the past is any guide, Jobs & Co. could very well use some of the money to swallow smaller companies," Fortt reports.
"Or Apple could make some investments. During tough times, the money Apple had put in Akamai Technologies (AKAM) and ARM Holdings (ARMHY) provided the company with valuable infusions of cash when necessary. It’s a bit more difficult to find places to stash $15 billion, however," Fortt reports.
"Might the company really launch a large-scale buyback program, or begin offering dividends? For Apple, there’s limited advantage in doing that until investors force the issue. Once a company gets onto the dividend treadmill, it has to keep doing it or risk being seen as in decline. The same goes for stock buybacks," Fortt reports.
"At Apple, there are some sizable projects ahead that could demand sizable chunks of cash [like] the brand new campus the company plans to build down the road from its current Cupertino, Calif., headquarters... Real estate experts last year suggested that Apple’s project costs could top $500 million... And, of course, it’s not clear whether their estimates factor in the possibility that Steve Jobs might decide to make a big architectural statement," Fortt reports.
"There’s always the chance that Jobs will surprise us all, break with tradition, and buy something big. Consider this: With the money burning a hole in Apple’s pocket, he could easily buy TiVo, Netflix and Circuit City, and still have plenty left in the bank," Fortt reports.
Full article here.
[Thanks to MacDailyNews Readers "Fred Mertz" and "Mike in Helsinki" for the heads up.]
MacDailyNews Take: What would we do? Well, we like to get a lot of bang for our buck, so we tend toward the dramatic: Apple should buy Adobe and, starting with Photoshop, double the price of the Windows version vs. the Mac OS X version while allowing Windows sufferers to double their number of licenses at no extra cost by migrating to Mac OS X. With the next version of Photoshop, discontinue Photoshop for Windows. Just as Apple did with Shake after they bought Nothing Real. Excecute that process down the line with the most widely-sold Adobe products. While you're at it, Apple, buy Autodesk, and freakin' finally get a version of AutoCAD (last release for Apple Mac: June 1992) out for Mac OS X. It'd be no small task — we hear AutoCAD a spaghetti-coded mess that's long been mangled specifically for Windows, which is why Autodesk can't even begin to think about, much less produce a Mac OS X version — but Apple could do it.
What would you do if you were Apple sitting on a mountain of cash?


That 700mhz spectrum would be a cool thing to have.
Apple could then launch their own media/phone net.
iTunes everywhere, at high speed.
killer