Apple's $100 Billion War Chest: 10 Ways It Can Spend It

 
 
By Don Reisinger  |  Posted 2012-02-15 Email Print this article Print
 
 
 
 
 
 
 

NEWS ANALYSIS: Apple is closing in on $100 billion of cash on hand. It’s about time the company starts using some of it.

Apple ended the fourth quarter with more than $97 billion in cash on hand. If all goes well, the company could end this quarter with well over $100 billion, making it the richest company in the world. Over the last few months, Apple's cash has been a source of much debate between those who believe the iPhone maker should hoard it and those who think it should start spending it.

For his part, Apple CEO Tim Cook said at an investor conference on Feb. 14 that he plans to be cautious with his company's cash and won't rush into any decisions. However, Cook did seem to indicate that he's thinking of ways to use some of its cash within the next several quarters.

As one might expect given Apple's history, Cook wouldn't say what he might do with his company's cash. But that doesn't mean we shouldn't ask questions about it. In fact, we might as well give Apple some tips on what it should do with all the cash that's piling up in its bank accounts across the world. Here are a few suggestions and observations.

1. Research and development

If there is anything Apple should spend some money on this year, it's research and development. With that much cash on hand, Apple could push markets forward by leaps and bounds. Reports claim it's trying to do that with HDTVs, but in what other spaces can Apple push forward with all of its cash?

2. Dividends, please

Despite Apple's strong financial performance over the last several years, the company hasn't offered any dividends to shareholders. It's an odd move that many financial analysts would like to see change. For its part, Apple hasn't said if it will offer dividends or not, but as the chorus of complaints grows louder, it might only be a matter of time before it offers them.

3. Strategic acquisitions

With nearly $100 billion in cash, Apple can afford just about any company it wants to buy. So, why not set off an acquisition spree designed to buy up firms that could significantly improve its standing in the mobile space? Apple recently bought Israel-based Anobit to reduce its component costs. Making similar acquisitions in the coming months might be a good idea.

4. Acquire more patents

In the mobile space right now, having more patents is a good thing. So, perhaps Apple should start acquiring patents from other companies, like Kodak and IBM. Last year, Apple, along with several industry partners, invested in Nortel patents. It was a good first step, but acquiring more patents now would be an even smarter idea as it continues to field lawsuits from competitors.



 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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