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Apple now has more cash than the federal operating balance, and most among the US non-financial firms

Posted: , by Daniel P.

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Apple now has more cash than the federal operating balance, and most among the US non-financial firms
With the $76 billion in cash amassed mostly since the iPhone introduction in 2007, Apple now has more money to play with than the current US government operating cash balance of $73.77 billion. It would be cruel to mention that Apple also holds no debt, whereas the US public finances are... well, the debt ceiling soap opera continues unabated just a few days before the arbitrary deadline of 8/2, set by the trusty Tim Geithner.

Not only that, but it seems that Steve Jobs's pride and joy company has the most cash out of each and every non-financial US company, i.e., those that actually produce something instead of moving digital money around with clicks of the mouse, and whose cash pile is mostly collateralized, i.e. phony.

In fact, just in the last quarter, Apple added $10 billion to its reserves, more than Google's entire revenue stream for Q2. Not bad for a company that makes consumer electronics and software, so we can't help to wonder what the US economy would look like if it wasn't for the Silicon Valley.

Apple now has more cash than the federal operating balance, and most among the US non-financial firms
While the Valley giants Apple, Google and Microsoft are all trying to pay as little taxes as possible, this is true for any other big US firm out there too. After all, why mostly sponsor Wall Street with your hard-earned cash, unless you get some sort of tax amnesty to bring the money sitting in offshore accounts back home, as Apple and others are lobbying for.

The biggest downside is that the jobs that produce those gadgets or IT services have mostly gone overseas, so the fact that Apple has so much disposable cash is of little comfort to many.

A pending question is what is Cupertino planning to do with this money, after it conquered the world of mobile, and is well-positioned for the post-PC era, as Steve Jobs loves to call it. There have been many rumors about an Apple TV set, powered by iOS and iTunes, which will no doubt play well with your iPhone and iPad, if true, so that's another venture for which the cash war chest might be opened.

via DailyTech, AppleInsider & BizJournals

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posted on 29 Jul 2011, 04:46 4

1. dionddc (Posts: 129; Member since: 19 Jul 2011)

I like the bold words exclaiming how much Apple has compared to Google.

Phone Arena forgot to mention how much Samsung has. It's a lot more.

posted on 29 Jul 2011, 05:17

2. HTCFreak (Posts: 156; Member since: 17 Jul 2010)

Yeah! samsung has like $120 billion!! :)

posted on 29 Jul 2011, 05:29

3. dionddc (Posts: 129; Member since: 19 Jul 2011)

I'm not sure how much cash they have, but given that they have over $317 billion in assets, it's guaranteed to be a lot more than Apple.

posted on 29 Jul 2011, 09:02

20. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

How much does Samsung have?

posted on 29 Jul 2011, 21:23 1

57. 530gemini (Posts: 2198; Member since: 09 Sep 2010)

@htcfreak. Samsung does not have $120B. Provide us your source please. Also, Samsung has billions of dollars of debts as well, while Apple has zero debt.

posted on 30 Jul 2011, 20:51

87. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

Where did you get that "debt" idea with Samsung? PROVIDE US YOUR SOURCE PLEASE. Just echoing your own words. :)

posted on 29 Jul 2011, 08:32 1

15. Hen (unregistered)

They did not forget, they just saw it as irrelevant because to get the large number that Samsung has, it has to aggregate that from a host of other industries that have nothing to do with wireless and portable devices such as appliances and televisions. When you take those out, while the profits are nice, it pales in comparison.

posted on 29 Jul 2011, 18:04

53. dionddc (Posts: 129; Member since: 19 Jul 2011)


Samsung Electronics still has a near $120 billion in assets compared to Apple's approximate $75 billion in assets.

The fact that Apple isn't in appliances proves the fact that Samsung is stronger anyway.

posted on 29 Jul 2011, 21:26

58. 530gemini (Posts: 2198; Member since: 09 Sep 2010)

@dionddc. We're talking about actual cash reserves here. Not just cash. Apple has zero debt, while Samsung has billions of debts. Give us your source that details as to how much spendable cash Samsung has. Stop beating around the bush.

posted on 29 Jul 2011, 10:35 1

32. nodo (unregistered)

Samsung is not US company.

posted on 29 Jul 2011, 05:45 2

4. The_Miz (Posts: 1496; Member since: 06 Apr 2011)

This is why Apple has so much money - they cater to the needs of their consumers, Rather than try and cram out the next high end phone and call it 4G, they focus on keeping what made them successful in the first place and run with it. Google could learn a thing or two from them, but they're too busy coming up with their next big failure, copying Facebook through Google+

posted on 29 Jul 2011, 07:15 7

10. remixfa (Posts: 14255; Member since: 19 Dec 2008)

ooor.. they over charge the crap out of the customer for the "magic" of having an iProduct. Its amazing how much more expencive an iMac is compared to a PC, even though they run off the exact same hardware. They have the highest profit margins by far in the industry. They also have a cult following that has been compared to a major religion which keeps devoted idiots like you buying their stuff blindly and hating everything about everyone else even though you have no idea what your talking about.

Good for Apple though. Id like to swim in those money coffers once.. lol.

posted on 29 Jul 2011, 08:18 5

12. Hen (unregistered)

Cult lol? Just like the Android fanboys. You both are two in the same. You just toot to a different horn. So why is there such a big need to flame on one another? Also lame to compare Samsung as a whole when the company has so many other divisions not related to wireless such as appliances and televisions. You Android fanboys always have to go fishing because of hatred for Apple when it is not that serious. Enjoy your Evo or SGII and let them enjoy the iPhone.

posted on 29 Jul 2011, 12:03

39. gallitoking (Posts: 4720; Member since: 17 May 2011)

@Hen.. you sir.... speak the truth... thumbs up to you and have a nice weekend

posted on 29 Jul 2011, 08:30 4

14. davecann2 (Posts: 460; Member since: 15 Mar 2011)

It’s now becoming a lame argument that Apple over charges for its products and here is why....

If you noticed the iPhone is priced at a reasonable $200 on contract. Just like all premium smart phones. Also, the iPad is at the same price point as its competitors.

You can also take notice that Samsung’s Ultra slim laptops, with similar specs, cost more money than the Apple MacBook Air.

So why would you say they overprice there products?

posted on 29 Jul 2011, 08:50

19. beatlesfan (Posts: 150; Member since: 03 Mar 2011)

compare a Windows based laptop, let's say a Dell. You can have a completely customized Dell with HDMI out, blu-ray, Intel i-7 processor, etc., etc. for $1000 or less, but you can barely get a BASE model macbook for $1000, not to mention (last I checked, it may have since changed), Apple does not even have blu-ray OR HDMI out on even their high-end Macbook Pro

posted on 29 Jul 2011, 12:41 3

42. remixfa (Posts: 14255; Member since: 19 Dec 2008)

apple does not charge 200 bux for an iphone, they charge 600 for the phone. Carriers subsidize the phone pretty heavily. Most full retail smart phones go for 400-500 and have much stronger tech.

Apples profit margin is in the high 30s which is nearly unheard of. Most other cell only companies like HTC have margins in the teens to low 20s which is still high but nowhere near Apples.

The reason that people bring up samsung's other arms is that apple posts its computer and cell profits under 1 lump number while other companies like samsung post them seperately since they are seperate divisions.
Also because iBots seem to think apple is the biggest software company in the world because of all these reports.. which isnt true.

There is report after report that Apple has not only an occult following that in chemically for many people Apple ignights the same part of the brain as religious devotion. They are the only company that has such a high % of "religious ferver". Its great for them but it also makes people blind to some of the dirty things that apple pulls... like the deadly working conditions of its workers.

posted on 29 Jul 2011, 09:05 2

21. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

You should stop making excuses and own up the fact Apple makes better products. If android has more market share that makes you the sheep and Apple users savvy consumers. Apple dominates the market. It's well documented.

posted on 29 Jul 2011, 09:59 1

24. dandirk (unregistered)

You get charged the same amount for an iphone... but the carrier is paying a TON more then for other phones. They just eat the cost.

While I completely agree with remixfa, Apple has done what very few companies can. Create a brand that has such strong following that is borders on religious. ALL companies strive for this type of market branding and apple has achieved it.

The brand alone allows for the super high margins apple products have I would guestimate 50% of the added margin. While quality/functionality is the rest.

Apple does make quality products, and their closed system allows for even better quality control.

Look at cars... while a bmw costs more, not all of that cost is purely better parts/labor. There is a cost for the brand of bmw that people pay.

Apple has just been sooo good and at the right times to break what people thought was even possible.

Apple products have a minimum of 30% margin... most other technical/electronic gear is under %10 I think... That is AMAZING that apple can pull that off.

posted on 29 Jul 2011, 15:59 2

44. remixfa (Posts: 14255; Member since: 19 Dec 2008)

lol, noone disagrees that apples marketing has been anything shortof genius. They do have a religious following. Its unheard of for anything outside of religion or global warming (which has the same affects as religion for many).

I believe their net operating profit was somewhere in the celestial 37% range. Its insaine. They charge so much because people are willing to buy it. Its supply & demand 101. The price is what the market will bear.

Thats great for apple's stocks... but that still doesnt mean its over priced junk.. :)

Personally I have an adversion to closed systems on the general be it computers, big government, or anything else. Everything has its + and -, and for me ill take the risk and reward for the free market over the closed system any day.

posted on 29 Jul 2011, 10:07

26. Heatfan316 (unregistered)

Savvy consumers you say anything but tech savvy most of you are mindless morons who don't know s**t about phones or tech most of you just buy it because it's trendy and no other reason except for that. Oh yeah and that's well documented also

posted on 29 Jul 2011, 10:21

28. dandirk (unregistered)


I personally think your statement is disingenuous.

The quality of the product is not 100% of consumers decisions. Brand, and coolness is a large factor as well (as much as I wish it wasn't so).

I will not admit apple make "better" products, because I don't think its true. At least not "better" for me. Maybe "better" for others.

Apple also does NOT dominate the phone market, not any more. But they also aren't dominated either. 30% vs 40% is pretty much a wash when marketshare is concerned. As much as you don't want to admit it, you cannot compare 1 android device to the iphone. The OS and app ecosystem DOES matter. Until Apple licenses out iOS you cannot compare them that way.

Also please stop using market share, you can't use it any more since it was an argument pro-apple fans used even just months ago to prove the iphone is "better"

btw I don't think Android can use it either. Market share can't be used for the "better" argument either way... again look at bmw... many consider it a better vehicle but it doesn't dominate US market. Yet the camery is often considered "better" in its class and does hold the largest market share. Marketshare and quality can go both ways.

Market share can determine popularity and general quality... get you in the right neighborhood as it were.

posted on 29 Jul 2011, 11:05

33. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)

I'm going off customer satisfaction surveys and sales figures. People buy products because they are happy with them. No matter how you want to spin Apple's marketing people would not continue to buy the product if they didn't like the previous one and Apple leads by a wide margin with customer satisfaction. Apple also gets excellent reviews on their products from all tech sites. So despite what the PA trolls want to say all the facts point to Apple making amazing products and dominating in sales. It's well documented.

posted on 29 Jul 2011, 16:04 2

45. remixfa (Posts: 14255; Member since: 19 Dec 2008)

people buy products because
1) they were happy with another product from taht company
2) peer reviews
3) brand recognition.
4) sales reccomendations.

Apple's biggest buy reasons are brand recognitions and peer reviews.
Anything wrong with that? not at all.

Taco, for the last time *yea right* iOS is NOT DOMINATING SALES.
18% for iOS vs 40% for Andriod is BEING DOMINATED.

If you were to say "app store is dominating android market", or "iOS brand recognition is dominating any Android phone" or anything like that.. you would be correct...
but iOS is being destroyed by Android device sales and its only getting worse each quarter.
That horse is dead.. quit beating it.

posted on 29 Jul 2011, 19:52

55. stealthd (unregistered)

iOS is 28%, not 18%. iOS isn't being "destroyed", it has it's market, and Android has it's own. Android has the budget market cornered right now, which is why Apple is eyeing prepaid. You want to know what dominating really looks like? Motorola, Samsung, HTC, LG, have all been making phones far longer than Apple, yet in less than 4 years Apple has passed all of them individually in sales with just 4 phones, beating out their army of devices on every carrier. Google doesn't sell a product to consumers, they license one to OEM's, so comparing Android as a whole to iOS doesn't always make sense when you're talking about sales.

posted on 30 Jul 2011, 10:17

76. remixfa (Posts: 14255; Member since: 19 Dec 2008)

no, worldwide its 18%. The article your thinking of.. the one posted the other day was AMERICA only. I speaking world wide.. not just america. PA posted an article about that like last week.

Gotta keep your facts straight. :)

posted on 29 Jul 2011, 21:30

59. 530gemini (Posts: 2198; Member since: 09 Sep 2010)

@remix. So what would you call yourself for patronizing your beloved android? Just a plain android consumer?

Apple is successful because they produce great products. No gimmicks there. However, fandroids like you try so hard to come up with your excuses against Apple. Obviously, your attempts are futile, hahahahaha.

posted on 30 Jul 2011, 09:37

70. remixfa (Posts: 14255; Member since: 19 Dec 2008)

the difference between us Gemini, is while i love the android OS, i am not afraid to try new things. I also had an HD7 this year which was quite nice actually. If it had more features I might have kept it longer. Ive had pretty much every OS under the sun other than iOS and Bada. Ive used androids from every manufacturer except LG and Huwaii.
I am not a "die hard" like you or taco that blindly follows one company. I may sound like a fanboy on these sites because I have to defend inaccuracies by ibots but thats about it.

posted on 30 Jul 2011, 20:53

88. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

+1. You just spoke my mind. I don't have anything else to add.

posted on 30 Jul 2011, 21:15

89. ladyhaly (Posts: 106; Member since: 17 Jan 2011)

They cater to the needs of their consumers? Really? Is that why they're charging for everything? Is that why their products have a larger percentage of profits per purchase compared with other manufacturer's handset? And is it also a need for their consumers to not be able to share music or pictures or any other files with other devices that are not from Apple? Is it a need for their consumers to have an expensive device be expensive just because of the high profits which the consumers buy off simply because the company creates the atmosphere of exclusivity that social climbers who want to shout out to everyone that they are rich are after? What you say is contradicting because there are different preferences of different consumers and if a company was trying to bring the consumers what they wanted, they would release several devices to suit their tastes and needs per year rather than going for one device per year, chucking it down to everyone's throats with its "magic", and shouting that it's the perfect device when it's clear that it's VERY MUCH FLAWED. All while pricing the device highly--- in fact, the highest in the smartphone market--- simply in order to create the illusion of symbolic high socioeconomic status for the social climbing user who will swallow everything up because they want to be "it". No, it's not because they've chosen the device that balances out price and quality; it's because of the symbolism.

So, no, Miz. No, thanks. I wouldn't say so if Apple has created an iPhone that has no huge setbacks by now that just turns me off while meeting up price with quality but I don't think that's ever going to happen.

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