Apple Will Put Its $100 Billion To Innovate and Disrupt; So Shut Up About Dividends And Stock Buybacks

More than 46 billion in revenue, 13 billion in profit, and, now, we learn that Apple has close to $100 billion in the bank in various cash and short-term investment vehicles, there has not been a shortage of what Apple ought to do with all that money "in the bank".  I know this much:  there will be no dividends or stock buybacks.

It's not Apple's style.Tim Cook and Peter Oppenheimer told analysts during its financial call that the Apple board was in active discussion about what "constructive" ways Apple can use its cash, it gave folks hope that Apple is headed towards rewarding shareholders in one way or another.  Despite that, it's not happening.

If Apple wanted to distribute money or buyback shares, it would have done it a long time ago.  A year ago even.  

This is why I think Apple will put that money to work in ways that will solidify its future in mobile and ecommerce.  This will happen in such a way that even some of its cash rich competitors will not be able to do.  After all, its closest competitor has about $30 billion in the bank but that is still quite different from having $100 billion in the bank that Apple has.

I think all of this is related to how Apple will take iOS and the iPhone into a new direction.  And it could happen with iOS 5.  

One quick example I can come up with is this.  Suppose Apple comes out with such an innovative HDTV that will cost in the range of $4000-$5000.  Not many folks can pay that kind of money right off the top.  So perhaps, Apple could use its money and create sort of a credit line for anyone who wants to own such a TV.

Apple can also give users financial deals on Macs and iOS products.  The same can be done for schools where Apple can set up funds to help students finance iPad purchases.  

Certainly, Apple will continue to invest in supply lines and innovate in new manufacturing processes.  

All of what I mentioned are likely on the table for Apple regarding what it wants to do with its cash.  The point is $100 billion is an opportunity, not a burden as some on Wall Street would like us to believe.  Apple is a company that is in an unique position to make the most of this opportunity.

During President Obama's state of the union address on Tuesday, a term that is likely going to be a corner stone of his reelection campaign is "build to last".  Most would agree that Steve Jobs' legacy isn't the Mac, iPod, or the iPhone but Apple itself.  

Giving $100 billion back to the shareholders just isn't something helps an enduring Apple.  But using it to further innovate and implement new technologies and disrupt new markets will continue to buiid on Steve's legacy.

Note:  It's possible the Apple board of directors might offer some token stock buyback to satisfy some Wall Street critics but I doubt it'll be anything meaningful.

Apple's Cash: Forget Dividends/Buybacks Or TV - Tim, Put A Few Billions Into Artificial Intellgence

Siri is where the future's at. So this Su where I suggest where Apple should put its nearly $100 billion in cash and short-term investments: AI.

As in artificial intelligence. And I'm not just talking about giving Siri an even more dazzling personality. I'm talking about robots. Androids. Sorry, I don't mean Google's mobile OS.

See, this is where the future OS is at. Not OS XI or iOS 7 or 8 but a totally revolutionary OS that is intelligent all around.

Something like Siri 5.0. One that can carry along a more natural conversation and truly act as a personal assistant.

Eventually, it could be Apple's AI that power our homes and lives.

That's where I would put a few billions.

Twenty Percent of Kindles Unloved By Their Owners?

According to Telegraph, 1/5 of Kindles are left unused after their collective unveiling at in Christmas morning.  I think this is an example of shady reporting, regardless of which reader or tablet you use.

First, the post says nothing about the type of Kindle it is referring to.  It made it sound like they include in large part, the Kindle Fire. Now, you might suspect that this was a hit piece from an Apple or iOS fan. In the past, I would have thought that to be the case. However, with the forking of th Android platform, the writer could be a fan of just about any platform.  

This includes Apple, even Mincrosoft, and, also very likely, a pure Android fan.  

But 1/5, or 20% of all Kindles sold not bring touched ain't bad. Not good ad definitely not great but not bad either. Amazon has to do more to entice users and even educate Kindle owners what their devices can do. 

I reckon that more of these abandoned Kindled are of the e-ink flavor and not the Fire.  

It's still early in the game for Amazon and even the number of millions it sold, I think Amazon is rather content with the response it has bottom from the market.  

Source: Amazon Kindles 'go unused' after Christmas - Telegraph

Siri Coming To Other iOS Devices? How About Macs?

Siri could be coming to other iOS devices.  Now, I'm not talking about iPad 2S or 3.  Nor am I talking about the future iPod touch update.  Rather, I'm referring to the current gen iPod touch, which happens to be the same as last year's version and the iPad 2.

Here is an image capture via Cult of Mac with references to both the iPod touch and the iPad.  Now, it's a given that one day, Siri will propagate throughout Apple realm, even Macs.  That isn't the issue.  It's whether current hardwares on the market now, outside of the iPhone 4S, will also be Siri-capable.

There is more at CofM on this.  The above pic is for the iPod as you can see on the top left corner.  

It makes sense and also it's important that Apple begin to get Siri out of beta and to support more languages. This is most certainly a daunting task.  And it's just as urgent for Apple to get Siri into as many users of its growing hardware profile as soon as possible.

This is a race to control the future of mobile computing and change the face of UI.  Siri, as I've declared in the past, is a brand new plattform that has given Apple another opportunity to disrupt the markets.  That's right.  Markets.  Plural.  That is because we are in an increasingly connected world where our gadgets, appliances, and devices will one day be connected to clouds or private networks.  

It's up to Apple when Siri, or even just simple dictation, becomes available to non-4S users.  I cannot argue the technical merits of whether there is a hardware reason why only the iPhone 4S has Siri.  However, I figure this is more of an artificial reason, like the fact that Siri is in beta, than anything else.

We should know by the next iOS update or two about Siri's status.  

Source:  Cult of Mac.

Note:  I can't wait for Siri or even just dictation to come to the Macs.  I'm hoping the dictation portion for the Macs will not require a network connection as Siri needs now but I'll settle for anything.   I imagine the day when I can dictate posts like this.

Apple Tie-Up With Target Means Mobile Payment?

Apple fans, especially if you’ve got an iOS device or mobile phone, rejoice. Looks like Apple could be coming to a Target store near you. And I’m gonna go out on a limb here and say this. Apple could slow and surly be putting into place the means for users to not only buy Apple gears more easily but could also more easily allow iOS users to buy things with their iTunes accounts.


You’re thinking “dude, what are you smoking” right about now. Here me out. Store within a store for Apple isn’t something new. In fact, it goes all the way back to ancient history: CompUSA. Yeah, like in the 90s. And then we have the Apple stores but Apple kept their little corner in Best Buys as well. But Target is uniquely different. It’s a general consumer retailers – food, consumer goods like clothes and furniture. Yup, Target does sell electronics and to my knowledge, I’ve never seen a Target selling computers before. And this could be an opportunity for Apple. More than that, a while back, it was Starbucks that partnered with Target to test out its mobile payment plan that has now grown to most Starbucks and Target stores. It’s Target’s willingness to strike this kind of deals that has me thinking that maybe Apple could be thinking beyond just places its Macs and iOS devices in general consumer stores. And it could mean that Apple is looking at expanding – oh, say…TV? Furthermore, when you buy Apple gears, apps, or other accessories for pickup in Apple stores, you’re pretty much signing in with your iTunes account for the most part. There is a credit card but it’s about the ease in which it’s done and really blurs the line between what an Apple or iTunes account is. Imagine being able to buy something from Target’s app on your mobile device and picking it up at the store. Awesome, no? Source: Gigaom - Posted using BlogPress from my iPhone

Barnes & Noble To Spin Off Nook - Maybe Apple or Google Should Save The Whole Company

One of the saddest moment, and not just for mobile, was when Borders shut down its stores and went dark, literally, in the retail arena.  And now, it looks like Barnes & Noble could be going down that path.  Essentially, the news today is that B&N is looking at spinning off the Nook and digital business.

Right now, the stock is down by much and its investors’ sentiment confirms my fears – I’m afraid I could be taking another hit in the nostalgic department and see my local Barnes and Noble store go the way of the Borders stores.

I used to study at Borders and B&N when I was in college and I still frequented them a couple of times a month.  It's there where I bought books, have coffees, and met up with friends.  Lots of terrific memories.

And it brought me back to a conversation I had with a B&N employee over the Christmas season.  We chatted about how BN’s retail business was doing and how confident she seemed because they had the Nook business while Borders was too late to the game.  I did not exactly buy what she was saying but, hey, it was Christmas and I didn’t want to push too hard on that matter.

There is hope though, no matter how foolish it might be.  I hope that some tech giant like Apple or Google could come in and take over the company.  Use the retail stores to their advantage as Apple had done with its Apple stores.

Apple could renegotiate for better retail terms and use the bigger retail spaces to expand its grown consumer and iOS product line.  Gonna need room for them iTV sets that they could be selling soon.

Google can use it to showcase and sell Android and Chrome devices.  Heck, Google also has some TVs that it wants to sell to folks.  And sure, Microsoft could bring its Windows, Windows Phone, and Xbox under one roof.

One thing is for sure:  I don’t want to see a private investor come in to snatch up Barnes & Noble in the name of “unlocking its value”.

More at CNN.

Apple Could Be Plotting Game Changer on E-Commerce

Apple could be launching an attack on e-commerce. 

You probably don't know this unless you following the daily in-and-outs of Apple news. On New Year's Eve 2011, an app called GameStore was accidentally published and let lose in the App Store. 

Really, there was nothing to GameStore other than that it was meant to allow users to buy things, fconceivably, in-app purchases. However, there was nothing to buy. And moreover, GameStore costs $0.99. 

Now, Apple has informed buyers that they will be issuing a refund for the purchase. Macrumors has tracked this back to 2009 when it was iOS 3 that dominated the landscape. 

You might think that it was a mistake. Well, it was and Apple has acknowledge it so. However, the official explanation from Apple was now what everyone expected. It certainly was not what I expected. 

According to Apple, the app was prematurely launched and "was made available for sale prematurely".  

What those words mean is that an app will be forthcoming. However, a dedicated in-app app for apps in general makes very little sense unless Apple includes other forms of goods along with it. And I am not talking about ebooks, music, or videos since there is iBooks and iTunes for that. 

With hundreds of millions of accounts with active credit cards in its database and continuing talk over the last couple of years about mobile payment, I surmise Apple is close to launching a bold mobile commerce plan and will revolutionize e-commerce. It seen since Amazon came out and changed book buying during the dotcom boom. 

Whether Apple will charge to process transactions or take a percentage, what is really going on is that Apple is looking to monetize its legions of iOS and Mac users who have demonstrated over the years their collective willingness to spend.  

So to recap, an app for commerce is forthcoming. And we know Apple has designs on those iTunes accounts. And we know Apple has patents for mobile payments. 

Put all of that together and you are looking Apple for people to buy "things", just as the description says. On top of that, it has placeholders for SKU and picture for product. 

I am pretty sure I am right. Question is when this will happen and to what extent is Apple going to put itself between its users and stores or restaurants. 

Source: <a target="_blank" href="http://iphone.macnn.com/articles/12/01/04/was.available.for.almost.three.days/">Macnn</a>. 

- Posted using BlogPress from my iPod touch