engine - 12:34 pm on Jan 26, 2012 (gmt 0)
What To Do With $98 Billion In Cash [reuters.com]
Apple CEO Tim Cook has a problem, a $98 billion problem.
Just 18 months ago, Apple's $46 billion mountain of cash - while huge by most standards - attracted only muted complaints from investors, who did call for a dividend or share buyback, but were mostly happy with the meteoric rise in the stock price.
But with the growing cash balance now a much bigger overhang on the stock, widely considered to be undervalued, investors are clamoring more vocally for Cook to put the money to work.
It's a nice problem to have, but, with interest rates so low, $98 Billion is not earning so much interest.
How about these for ideas.
1. Reduce the price of their products - clearly, they are making too much from the sale of each device.
2. Invest in or buy other busineses - potentially, that could give a far greater return in the long term.
3. Send me the money - that way, my trip to the sunny beach would be doable.
What would you do?