Apple to report on Tuesday that it currently holds $250 billion in cash

Apple to report on Tuesday that it currently holds $250 billion in cash
On Tuesday, Apple is expected to report its fiscal second quarter earnings. In that report, the tech titan will reportedly announce that it is holding $250 billion in cash. If you think that this is a lot of money, you're absolutely right. According to Marketwatch.com, this is more than the foreign currency reserves held by the U.K. and Canada combined. Looking at it another way, at current valuations Apple could purchase all of the outstanding shares of Walmart and Procter & Gamble and still have money left over.

It has taken Apple only 4 and half years to double its cash hoard. During the fiscal first quarter of 2017, Apple was adding $3.6 million to its cash position every hour. It finished the quarter ending in December with $246.09 billion in cash. 90% of the money is banked overseas, which means that Apple would be one of the companies to benefit the most from President Trump's plan to offer a one time tax break on repatriated funds.

Currently, U.S. corporations pay 35% on cash held overseas that is brought back to the states. There is speculation that the rate will be cut to as low as 10% for this one time only event. Apple CEO Tim Cook and CFO Luca Maestri both have expressed an interested in shipping some cash home if given the chance to save on the repatriation tax.

With such a large amount of cash stashed away, Apple stockholders could demand that Apple distribute some of it to them by raising the quarterly dividend which is currently at 57 cents a share. Based on the stock price, this is a yield of 1.6% on an annualized basis. Apple could also decide to pay a one-time only special dividend, or make a purchase. Currently, there is a rumor that Apple is interested in purchasing the memory chip business belonging to Toshiba.

The latest gossip has Apple and iPhone assembler Foxconn combining to make a bid for the Toshiba division. Apple would end up investing several billion dollars for a 20% stake in the company that it would form with Foxconn. One fund manager with holdings in Apple, Robert Nichols of Windward Capital Management Company, says Apple should buy video streamer Netflix for $65 billion. He says that such an acquisition would allow Apple to own a streaming media service without having to start one from scratch.

source: Marketwatch, FoxBusiness

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30 Comments

1. cnour

Posts: 2305; Member since: Sep 11, 2014

This is the result of real innovations. Keep it up Apple.

2. guests

Posts: 196; Member since: Jun 19, 2016

No, this is the result of selling logo instead of "real technology".

3. kiko007

Posts: 7518; Member since: Feb 17, 2016

I'm pretty sure you have to sell "real technology" for the logo to signify anything...

31. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Cash is like manure. Pile them up and they stink, spread them all over and things grow.

29. cheetah2k

Posts: 2275; Member since: Jan 16, 2011

HAHAHAHA All the isheep money.. This is the money they hoard and don't spent on real innovation, re-inventing and pushing 2-3 year old tech as new and the best. I'd love to know how much % of this $250Bn is from patent trolling, not paying contractors, tax avoidance, money laundering, etc, etc.. #themostunethicalcompanyontheplanet

13. cmdacos

Posts: 4276; Member since: Nov 01, 2016

That was several years ago. Now its living on marketing. Kudos to them though.

14. sonisoe

Posts: 440; Member since: May 06, 2009

i detect sarcasm or a naughty bait to get people riled up... he he he

17. jacksmith21006

Posts: 68; Member since: Nov 03, 2015

Numbers are a little misleading. Apple also carries $97.5B of debt. "Apple, Inc. Is Now Approaching $100 Billion in Debt" Apple has also increased offshore to 96% which if not tax holiday has to be taxed 35% + 8.84% off the 96% and then deduct the debt. So it is a little misleading. You can compare to say Alphabet that has less than $4B debt and has 60% offshore. But the biggest news with Apple is they have had declining earnings for over 2 years now and 2 years ago reported $2.33 EPS and will report less in quarter that just ended.

25. marorun

Posts: 5029; Member since: Mar 30, 2015

This is the result of real boundless greed. Keep it up Apple. Repaired it for Cnour.

4. lolatfailphones

Posts: 224; Member since: Apr 08, 2013

Incoming butthurt Android fans

6. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Lol, what is there to be butthurt about not getting separated from your cash like a fool? Cash reserves are gained from barely putting anything back into R&D, and selling cheap devices at a premium, the consumer is the loser in both cases...but I guess some are proud of that by definition ( https://is.gd/d71IUU ).

12. Wiencon

Posts: 2278; Member since: Aug 06, 2014

You are the definition of butthurt

18. diggie32

Posts: 388; Member since: Apr 03, 2016

Butthurt android fan detected.

26. marorun

Posts: 5029; Member since: Mar 30, 2015

is thats all you apple fan can say? lol poor sheeple ;)

30. cheetah2k

Posts: 2275; Member since: Jan 16, 2011

I aint butt hurt. Apple got your isheep money bro, hope it was worth it :D

5. GreenMan

Posts: 2698; Member since: Nov 09, 2015

This is insane! That's probably enough cash to fill the English Channel with $1 Bills! Courtesy of Sheeples, of course... G'Day!

7. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

I want only 1 million $. Is it too much to ask :( ?

8. tangbunna

Posts: 485; Member since: Sep 29, 2016

when it reach 300bm apple will buy an island to host apple-mafia (cia-like) to track every users.

10. batmite

Posts: 197; Member since: Jan 19, 2017

Apple innovates and the rest can only hope to follow. Keep up the good work Apple, while I get the butthurt report forms ready for those that will be crying a river of salty tears.

11. Quicksword_Phantom

Posts: 180; Member since: Jun 15, 2015

Your delusion is sad.

21. L0n3n1nja

Posts: 1579; Member since: Jul 12, 2016

Apple minimizes expenses by copying others, they aren't innovative, haven't been since Jobs passed away. Cook just follows market trends while minimizing expenses and keeping manufacturing costs low. Numerous other phones cost more to manufacture while being sold for less than an iPhone.

16. jacksmith21006

Posts: 68; Member since: Nov 03, 2015

There is also $97.5B of debt. Plus 96% of the cash is offshore. So if NO tax holiday there is 35% + 8.84% that comes out of the 96% and then deduct the $97.5B. So tons and tons of cash but actually not the most and the amount is a little misleading, IMO. Compare to Alphabet that has 60% offshore and less than $4B of debt so in a true apples to apples has more. The issue is Apple has had declining earnings for 2 years now and estimates are for another decline in quarter about to report. Two years ago Apple had $2.33 EPS and will report something less.

19. diggie32

Posts: 388; Member since: Apr 03, 2016

When you make the best, you rake in the money. Android OEMs dream of such success, but they can't because they are under the delusion everyone wants a grandma phablet

24. sissy246

Posts: 7124; Member since: Mar 04, 2015

And another dumbass All it tells me is how over priced the phones are for them to make that kind of cash. And let's not for get they have that much because they are cheating the US out of tax money by sending it over seas while you still have to pay your taxes or go to jail.

27. marorun

Posts: 5029; Member since: Mar 30, 2015

diggie care to explain why car maker like ferrari make less profit a year than honda? Its because the best of everything is a niche product. the most sold and the biggest profit dont mean the best device or car. its mean the best business model to milk client as much as possible. So have fun with your honda civic ;)

28. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

Nice car. What's the retail on one of those?

20. whatev

Posts: 2354; Member since: Oct 28, 2015

This is what happens when you do different than the others, you're successful, that applies to other aspects in life and not only as a tech company. The competitors are taking lessons from apple as usual. Keep it up apple!

22. L0n3n1nja

Posts: 1579; Member since: Jul 12, 2016

Some of the delusional comments on here are hilarious and sad.

23. sissy246

Posts: 7124; Member since: Mar 04, 2015

BFD Unless you have stock why the f**k does it matter. I don't give a s**t what any company makes if I don't have stock in it.

33. Supah

Posts: 692; Member since: Mar 08, 2017

Holy cash cow!!

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