Apple's Cash Helps Apple Grow More Cash And Put Distance Between It And Its Competitors
PC Magazine has a pretty good post that I've kept locked away in my Instapaper account for about a week or so that I finally got around to reading. Then I reread it and thought I share it with you. With $76 billion in the bank, which is simplifying things a bit, Apple had more cash available to it than the US federal government (until Congress passes the debt ceiling and budget deal worked out by Congressional leadership and the White House). And instead of wastefully throwing it away as dividend, stock buybacks, or reckless buying up companies, Apple used it to help secure components and reduce costs. First, Apple uses its cash to help finance building new factories that could build out new technology faster. When new tech comes to the market, the cost could be prohibitive to adopt. And because Apple can almost guarantee its that its devices, like the iPhone, will sell in great numbers, Apple can be sure that its investments in this manner is sound. ...