That's... not good. Sure, some cash is important for operational purposes, but not $34B. If they don't have some spectacular purpose in mind, that money should be invested or returned to shareholder in a special dividend (like Microsoft did to its famous warchest after its legal liabilities went away).
@jepzilla: As mentioned in the "CEO of the Decade" article, that downward slope from 12/96 to 9/97 was heading rapidly to the X-axis - bankruptcy.
I would expect Apple to use this cash for something more productive than financial holdings once the worldwide economy turns around. If you are a shareholder (and I am), you shouldn't be upset that Apple is sitting on a big pile of cash when financing is hard to come by and short-term financial investments have a large potential upside.
It's not like the CFO put the cash under his bed and refuses to let Apple have it back... #chartoftheday
@jepzilla: If I was a shareholder I would rather Apple keep the cash (as long as I kept a good return) in a bid to keep stability later on down the line. Have them invest it in good R&D with a longer term picture in mind.
@Don Nguyen: The point is, Apple shareholders are getting basically no return on that $34B right now. It's cash, that means it's almost certainly not getting a good real return. $34B in cash is money that's NOT being spent on R&D. I agree, they should invest it in good R&D. Hire some more engineers and start working on new products, or build a research lab, or do venture funding or something.
@jepzilla: Have you been following Apple's stock for the past year or so? They're basically recession proof. I think shareholders, like myself, are doing just fine. #chartoftheday
@jepzilla: Right they need to do something with it.
Its sitting there now. I'm sure they've got it in some great stuff that I could only dream of having similar returns but its not being used.
$34 billion is a lot. A lot is an understatement. Its the GNP of a small country.
Yes, financing is tough to come by in this economy. What are they going to have to finance for $34 billion though?
Its very, very similar to the money just sitting under Steve's bed. #chartoftheday
@jinushaun: Nothing and no one is recession proof. Apple has the same kind of investor ride Google was getting after it's IPO. Apple = profitable but shares are trading between 45 and 60x P/E. That and your not getting a dividend. It makes me wonder why they are charging such a premium to hold their stock and what they plan on doing with that stockpile. If it's not a big acquisition, $34B is WAY too much money to have on the sidelines... It makes me wonder if they're waiting for some inevitable FTC anti-trust smack-down for the iTunes/iPhone/iPod ecosystem... #chartoftheday
@jepzilla:
During recessions cash is king. Especially now when liquidity is hard to come by, it gives Apple complete freedom on how to run their business.
Agreed that 34B is a lot, but not for a company with the growth like Apple. #chartoftheday
Jesus Google, you're top 3 in Email... maybe you can give us fucking push now? The lowest one on the damn chart offers one of the most superior features that you continue to lack. #creditscores
@Barclay Hygaard: Thanks for that link. I looked into it, but it requires you to enter it in as MS exchange, which I'm already using for my business email.
Why can't they simply enable push for all users the way Yahoo does? #creditscores
I use Yahoo and Hotmail just because they are web based and my credit score is higher than this chart even goes. Once again, I screw up the "norm". #creditscores
@Curves: I fail to understand that logic since GMail is also web based. I've used GMail from the beginning, dumping my hotmail and yahoo accounts. They were just horrible email clients. #creditscores
@gemcosta: Just a personal preference since I am anti-google. Too much of a Big Brother feel for me. I have a Gmail account, but rarely use it, and in fact, have it auto forwarded to a yahoo account. #creditscores
@Curves: If you use the internet, you're using Google. Practically every single page you go, anywhere (including this one), is using their Analytics package.
Whats the low end of a credit score? I don't know since I dont worry about mine being low (and I dont want to find out the low the hard way), but the commercials on TV say "650-850" but Yahoo's average is below 650... wtf. #creditscores
@phunnyballs: It can go as low as 300, and as high as 900. But most scores are around the 600-700 range these days. If you pay your bills in full every time, have no debt, keep everything in order, you should easily have an 800 or more. #creditscores
@MooglesInMyFace: A lot of Google's services just burn through money. You think Gmail is hosted for free? Or Android's developed by volunteers alone? And let's not forget Docs, Calendar, Reader, Wave, Voice, and of course their massive search servers that store every page their bot has indexed in memory.
The one money-maker they do have, though, is advertising. And apparently, it's a whopper. Which makes sense. Google gets tons of money each year from advertisers who enjoy their targeted, intelligent ads. Meanwhile, Google runs other services that boost their name and brand for pennies on the dollar of what they're ads bring in.
Good business isn't about minimizing losses, but maximizing gains. So long as they can keep up their superior ad targeting systems, they can burn through as much money as they have. And frequently do. #googlestock
@OCEntertainment: It's actually quite a powerful business strategy. By making your biggest products cash losers and your biggest money makers merely integrated into the product, if a product dies, it's a slight loss in profit backed up by a massive reduction in loss. Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour.
If MS really did want to get a leg up rather than trying to drive Google into the ground, they'd be attempting to bridge the gap with Google and offering paid for time in their apps/sites - maybe even focus on great products rather than trying to take down your competitors. Then again, that'd be crazy. #googlestock
@sortius: Huh?? I don't really understand your logic...
"By making your biggest products cash losers and your biggest money makers merely integrated into the product"
So they DO make money from their "cash losers" then??
"Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour."
Then how about their "biggest money makers merely integrated into the product" thing? It got killed too right?
The thing is, if some of Google's popular features die, most likely they're suffering bad rep like Yahoo and it'll severely affect they stock. #googlestock
yeah, but if the website(youtube) itself isn't bringing in any money at all, and they just take a loss on it, how is that good business? Even if other parts of google can pick up the slack for youtube it doesn't change the fact that youtube is a money pit.
just my opinion. I don't know how any of this stuff works haha. #googlestock
@MooglesInMyFace: If you fail to see the logic, then the only thing you're missing is the scale.
Let's say for my day job, I get paid $500/hour. Hey, I can dream can't I? Well, that amounts to $20k a week, or little over a million a year. On that kind of money, I can afford to pay for a nice house, all utilities, college tuition for the kids I probably have and still have some left over to sink into my dream DeLorean (If I'm gonna dream, I'm gonna make it rock). Sinking a few hundred to a thousand a week into that thing is hardly hurting my salary. It's a money pit, but it's one I can afford.
As another real world example, for the longest time, Sony was selling the Playstation 3 at a loss per unit. As in, every time you bought a PlayStation 3, Sony lost money, since it cost more to make them they were charging for it. Yet, they made enough profit on games and peripherals to more than make up for it. Nintendo has banked on this strategy for years, selling cheaper than average systems, and yanking money out of your nose through cheap plastic peripherals.
A single product can take a loss, even consistently, if the revenue streams of the company as a whole make up for it. Even if YouTube is losing money, until it threatens Google's huge ad revenue, it's existence is an asset....like as a place to put ads. ;-) #googlestock
@OCEntertainment: Actually Nintendo as Never banked on that strategy... ever. Every Nintendo console ever sold has been sold at a profit, because unlike Sony or Microsoft who can fall back on their revenues from other divisions, Nintendo only makes games.
Thus, even at launch every Wii unit sold made Nintendo money. And then Nintendo made even more money from all the games and addons.
@TheLostVikings R.O.A.C.H.: You'll forgive me. I didn't intend to imply that Nintendo sells console units at a loss. But, as you say, they're a game company. Their larger revenue streams come from games and peripherals. My guess is that the profit margins for many games and certainly a lot of plastic peripherals is a higher percentage than the console itself. This allows Nintendo to invest money in research into things that lead to things like the Wii's motion controls. And whatever other projects that failed before the Wiimote came into being.
The point is to not view any one product as an isolated revenue stream that must sustain itself. #googlestock
Cash flow is one thing, but throw in overhead, labor, and materials and I be willing to bet Google and Microsoft are closer, in terms of profitability. #googlestock
@Michai: I dont agree. If MSFT didnt pay dividends they would be closer to 30-40 billions in reserve. You cant compare a performance to a investment stock. Compare google to apple. They dont issue dividends. #googlestock
it's a proven fact that wind blows away a cell signal and floppy hats. that is why the windy city is so bad for cell reception and the kentucky derby. gotta test this someplace with no wind. google maps should help find a suitable test bed.
AT&T is pretty bad in Chicago, my cell reception went down over the spring, and now I can barely sustain a call in my apartment in Wicker Park. Constant changing from EDGE to 3G all over the place, which makes me drop calls. I'd call them to complain, but my call would drop :)
I have a dumb phone (KRZR K1) and a smart MP3 player (iPod Touch 1st gen) so... really I'm just fine, haha!
If I need a GPS, I have the Garmin eTrex Legend, and Nuvi 360. Sure, it's more gadgets to lug around, but I save hundreds of dollars before I even get to the insane service contracts we have in Canada...
11/11/09
11/11/09
I would expect Apple to use this cash for something more productive than financial holdings once the worldwide economy turns around. If you are a shareholder (and I am), you shouldn't be upset that Apple is sitting on a big pile of cash when financing is hard to come by and short-term financial investments have a large potential upside.
It's not like the CFO put the cash under his bed and refuses to let Apple have it back... #chartoftheday
11/11/09
11/11/09
11/11/09
11/11/09
Its sitting there now. I'm sure they've got it in some great stuff that I could only dream of having similar returns but its not being used.
$34 billion is a lot. A lot is an understatement. Its the GNP of a small country.
Yes, financing is tough to come by in this economy. What are they going to have to finance for $34 billion though?
Its very, very similar to the money just sitting under Steve's bed. #chartoftheday
11/11/09
11/11/09
During recessions cash is king. Especially now when liquidity is hard to come by, it gives Apple complete freedom on how to run their business.
Agreed that 34B is a lot, but not for a company with the growth like Apple. #chartoftheday
11/11/09
10/20/09
10/22/09
[googlemobile.blogspot.com]
10/22/09
Why can't they simply enable push for all users the way Yahoo does? #creditscores
10/20/09
Who let the riffraff in? Look, just....just give them one of the leftover hamburgers and tell them to get lost! #creditscores
10/20/09
10/20/09
10/20/09
10/20/09
10/20/09
Embrace the Goog, come on. :P #creditscores
10/20/09
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10/20/09
10/16/09
10/16/09
That site has to just be a bottomless burn pit for dollars. #googlestock
10/16/09
The one money-maker they do have, though, is advertising. And apparently, it's a whopper. Which makes sense. Google gets tons of money each year from advertisers who enjoy their targeted, intelligent ads. Meanwhile, Google runs other services that boost their name and brand for pennies on the dollar of what they're ads bring in.
Good business isn't about minimizing losses, but maximizing gains. So long as they can keep up their superior ad targeting systems, they can burn through as much money as they have. And frequently do. #googlestock
10/16/09
If MS really did want to get a leg up rather than trying to drive Google into the ground, they'd be attempting to bridge the gap with Google and offering paid for time in their apps/sites - maybe even focus on great products rather than trying to take down your competitors. Then again, that'd be crazy. #googlestock
10/16/09
"By making your biggest products cash losers and your biggest money makers merely integrated into the product"
So they DO make money from their "cash losers" then??
"Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour."
Then how about their "biggest money makers merely integrated into the product" thing? It got killed too right?
The thing is, if some of Google's popular features die, most likely they're suffering bad rep like Yahoo and it'll severely affect they stock. #googlestock
10/16/09
yeah, but if the website(youtube) itself isn't bringing in any money at all, and they just take a loss on it, how is that good business? Even if other parts of google can pick up the slack for youtube it doesn't change the fact that youtube is a money pit.
just my opinion. I don't know how any of this stuff works haha. #googlestock
10/16/09
Let's say for my day job, I get paid $500/hour. Hey, I can dream can't I? Well, that amounts to $20k a week, or little over a million a year. On that kind of money, I can afford to pay for a nice house, all utilities, college tuition for the kids I probably have and still have some left over to sink into my dream DeLorean (If I'm gonna dream, I'm gonna make it rock). Sinking a few hundred to a thousand a week into that thing is hardly hurting my salary. It's a money pit, but it's one I can afford.
As another real world example, for the longest time, Sony was selling the Playstation 3 at a loss per unit. As in, every time you bought a PlayStation 3, Sony lost money, since it cost more to make them they were charging for it. Yet, they made enough profit on games and peripherals to more than make up for it. Nintendo has banked on this strategy for years, selling cheaper than average systems, and yanking money out of your nose through cheap plastic peripherals.
A single product can take a loss, even consistently, if the revenue streams of the company as a whole make up for it. Even if YouTube is losing money, until it threatens Google's huge ad revenue, it's existence is an asset....like as a place to put ads. ;-) #googlestock
10/17/09
Thus, even at launch every Wii unit sold made Nintendo money. And then Nintendo made even more money from all the games and addons.
10/17/09
The point is to not view any one product as an isolated revenue stream that must sustain itself. #googlestock
10/16/09
10/16/09
10/16/09
06/30/09
06/30/09
Maybe Blagojevich is still siphoning off cell signals for his own use.
06/30/09
06/30/09
06/30/09
06/30/09
06/30/09
06/30/09
06/19/09
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06/18/09
If I need a GPS, I have the Garmin eTrex Legend, and Nuvi 360. Sure, it's more gadgets to lug around, but I save hundreds of dollars before I even get to the insane service contracts we have in Canada...
06/18/09
06/19/09
Nah, I don't usually carry a GPS. The phone's on a belt clip, and the iPod shares a front pocket with my DS Lite. :)
06/18/09
06/18/09