Apple Has Too Much Money 570
Hugh Pickens writes "AP reports that last week during a question-and-answer session at the company's annual shareholders' meeting CEO Tim Cook said he believes Apple has more money than it needs and his next challenge is to figure out whether Apple should break from the cash-hoarding ways of his predecessor, the late Steve Jobs, and dip into its $98 billion bank account to pay shareholders a dividend this year. 'Frankly speaking, it's more than we need to run the company.' The question of how to handle Apple's cash stockpile is a touchy one, partly because company co-founder Jobs had steadfastly brushed aside suggestions that the company restore its quarterly dividend which Jobs suspended in 1995 when it was in such deep trouble that it needed to hold on to every cent to keep from going bankrupt. Marketwatch analyst Mark Hulbert writes that a compelling case can be made that a huge cash hoard actually represents grave danger for Apple. That's because too much cash often burns a hole in managers' pockets, and they end up doing a poor job of investing that cash—engaging instead in foolish pursuits like empire building. Hulbert adds that a good strategy for ensuring that Apple remains a hungry, growth-oriented entrepreneurial company might be for it to distribute much of its cash to shareholders."
I sold my Apple stock in 2005 (Score:5, Funny)
I thought I was a genius for doubling my money.
Re:I sold my Apple stock in 2005 (Score:5, Funny)
"I thought I was a genius for doubling my money."
Sigh. Me too. Instead I have a PowerMac that effectively cost me a quarter of a million dollars.
A.
Empire building (Score:4, Funny)
Brain: We must prepare for tomorrow night
Pinky: Why, what are we doing tomorrow night?
Brain: We're going to go to Cupertino.
Pinky: What will we do when we get there?
Brain: The same thing we do every night, Pinky - try to take over the world!
Re:I sold my Apple stock in 2005 (Score:5, Funny)
You bought ram from Apple when you ordered your mac too?
Re:Apple's management doesn't know either. (Score:3, Funny)
Re:Another fly on the wall heard from (Score:1, Funny)
The vilification of Steve Jobs on Slashdot knows no bounds. Now he's getting blame for canceling Apple's dividend in 2005? That's a neat trick as he didn't return to Apple until 2007.
Stifle innovation (Score:5, Funny)
I hope they use that money to further stifle innovation. All these technological novelties and the accompanying technobabble are growing over my head.