Comments on: What should Apple do with all its extra cash?

The Mac maker, which operates with no debt, has $24.5 billion in cash on hand. Here are some things the company could do with that stack of dollar bills.

[DrtyDogg]

How about a kick back to the stock holders!

[Seanathome]

Amen. :)

[Apacheking]

Hmmm Were u the same folks who advised MS on what to do with their money?

[DrtyDogg]

they bought back some stock keeping my price higher, and yes I get my check every quarter.

[yacahuma]

Getting in gaming... Bad idea. I will put more money into making mac and easy replacement for windows in the enterprise.

[Alex Alexzander]

Just hold on to it. When Apple was in trouble in 1996 they were suffering losses of hundreds of millions per quarter. In one quarter they lost more than 1.5 billion. In another over 1.1 billion. When things go badly, you need a lot of cash and a lot of time to turn the bad situation around. And you'll be glad you have the cash to accomplish such things. Remember, Apple has over 260 stores in lease now. If the stores were to stop making profits, the stores along could be a serious drain on cash just to opperate or pay penalties to close them early. I don't think it will happen, but cash on hand means that if the unthinkable does happen, you're prepared for it.

Alex Alexzander

[shycelticwitch]

You seem to know a lot about Apple for someone who thinks they are worthless and overpriced.

[Alex Alexzander]

Show me where I wrote that Apple is worthless. I dare ya to try.

Macs are over priced for what you get compared to PCs. I said that, and I will keep saying that. And yeah, I know a lot about Apple as I have been a customer since 1979, longer than you have been alive I bet. I have been tracking Apple's stock since they went public, so again, yeah I know a lot about Apple.

Alex Alexzander

[shycelticwitch]

LOL I was old enough to be your mother when you bought your first Apple, so don't start comparing experience. Your reference to Apple Tax leads me to believe that you feel Apple doesn't give your money's worth. You state that you have one Mac system. I have 7. But I also have a Windows PC that is used SOLELY for the purpose of opening microsoft publisher files. You see... I am also in the design business, have been for 35 years. I was designing for print before computers existed. So I got to start from the beginning. I had both platforms. Mac kept innovating and making stability a priority, while Microsoft was simply concerned with profit margins. Garbage in, garbage out. If you've never heard that phrase then you are not the top notch designer you think you are. It's the golden rule of creativity.

So your comments about Apple being overpriced are fluff in the wind. It all boils down to a choice between the stability, longevity and compatibility (except for Publisher, I can open ANY PC file on my Mac WITHOUT Windows.) of Apple vs. the cheap prices, inferior hardware, incompatibility, high hack-ability and the ever present Stepford Wives mentality of Windows.

Whine all you want. Having been on both sides of the fence far longer than you have been alive, I know where the greener grass is. The fact that you prefer Windows to Mac for a graphics based environment indicates little TRUE knowledge of Mac's capabilities.

Why don't you spend a little more time on that Mac and see what it can really do?

PS, I haven't written any books because I have been too busy enjoying what I do best. Create. And enjoying it even more with stable, non-crashing, superbly compatible Apple machines that never cease to amaze me with their advanced innovations. However... I do have a few Addys... have you got one of those?

[Alex Alexzander]

"LOL I was old enough to be your mother when you bought your first Apple, so don't start comparing experience. Your reference to Apple Tax leads me to believe that you feel Apple doesn't give your money's worth. You state that you have one Mac system. I have 7. But I also have a Windows PC that is used SOLELY for the purpose of opening microsoft publisher files. You see... I am also in the design business, have been for 35 years. I was designing for print before computers existed. So I got to start from the beginning. I had both platforms. Mac kept innovating and making stability a priority, while Microsoft was simply concerned with profit margins. Garbage in, garbage out. If you've never heard that phrase then you are not the top notch designer you think you are. It's the golden rule of creativity.

So your comments about Apple being overpriced are fluff in the wind. It all boils down to a choice between the stability, longevity and compatibility (except for Publisher, I can open ANY PC file on my Mac WITHOUT Windows.) of Apple vs. the cheap prices, inferior hardware, incompatibility, high hack-ability and the ever present Stepford Wives mentality of Windows."

None of your Bologna changes my argument or even attempts to combat it. You are simply exploding like a fool and then drawing a conclusion that because of the words above somehow my argument is rendered proved wrong. And for the record, I started in Lithography in 1981. And it's not my sole vocation as it is for you. You own 7 macs, big whoop-dee-do. I have owned tons of Macs over the years. But that really has nothing to do with the argument at hand. You could own 7; you could own 70. It doesn't change a thing. If you think it does, you need to soak your head in ice water. Recently I am down to one and will not buy more than that. Because they are overpriced, over hyped, expensive and for the brainwashed like yourself.

Alex Alexzander

[Penguinisto]

The "overpriced" argument" is truly fluff in the wind. Spec-for-spec, Macs are on par or cheaper up-front than the Dell or HP equivalents. With longevity thrown in, no one can touch Apple (see also my happily running 2004-era dual G5 PowerMac with Leopard running perfectly speedy on it).

[shycelticwitch]

If it was brainwashing that convinced me to spend a few extra dollars for unmatched excellence, then I'm ready for my next mind bath. At least I wasn't duped into buying a lemon by some geek capitalist who chose profits over customer satisfaction.

As for the rest of your negative and unfounded comments about Apple, I believe I have shot them down quite neatly.

As someone else here previously stated... You just keep buying your cheap PCs and loving them, if you don't like Macs, then stay out of the conversation. This post had nothing to do with your pals Windows or Microsoft or IBM. So why are you even here? Don't have any more books to write on things you know little about?

Let's face it, you're here because you have nothing better to do than spout a lot of useless opinions (no facts, just opinions) about Apple and Mac. I'm here because I get 2 15 minute breaks in a 10 hour workday, and like to keep up with news and technology.

[Seaspray0]

Alex. yes, you may be down to just one, but I'm guessing that you love that one. You're one of the few here whom I would trust to give me an honest answer.

[Alex Alexzander]

I don't hate it. I just think it is over priced. Apple clearly stats they make on average 33%. A $3,000 mac means Apple makes $1,000 in pure profits. And that's just the average. The tower is their higher end product which also means it gets a higher margin likely used to make up for lower average products on the low end, such as the $1,099 MacBook which likely does not enjoy a 33% margin.

Do I love it? I don't hate it, but I don't love it either. It's a tool I use to look at art files given to me by clients. I also use it as a pre-mastering tool for DVDs before they go into manufacturing. There is a good app used specifically for DDP/CMF images. It is honestly only used for those two purposes. Everything else I do I use a PC for. DLT tape to tape copies for example, is best done on a PC. For that to work all I need are two or more DLT drives, SCSI, and a computer that has tape to tape copy software. This really only requires a cheap PC with one expansion slot for a SCSI. SO a $399 PC, a $65 Adaptec SCSI III card and a few used DLT drives is all I need. On the Mac side, just the tower alone would cost more than the PC with the SCSI and the DLTs and the software. So the Mac doesn't make sense as a copy station for DLT to DLT copies. And I do this function as well as DVD and CD copies so often that I have 4 PCs devoted to this task alone.

The hole in Apple's line is a Mac with at least a single PCI slot for some kind of expansion without charging $1,600.

There are other issues, but this is a simple example.

I also have a background in marketing, and I see right through Apple's marketing from an insider's perspective. I know the tricks they employ and I see it for it is. Certain people are more inclined to fall for the Apple gimmick. I'm not one of them. The fact that people here state the "love" their mac and have an emotional bond with the Apple brand is exactly what Apple wants. At the end of the day, Jobs is a sales person. As I am at the foundational level. The baby music, the colors, the strong-will telling you what you want is all part of the marketing. Some people want to be told what they want. Want to be lead. And want to be sold comfort. But the harsh reality is that the Mac is extremely close to the standard run of the mill PC. The difference is how it looks and the perception that is created around it. Like a Polo shirt vs the same shirt without the Polo logo. If you buy the Polo, in my opinion, you're a fool. But Polo makes a lot of money. But that's America. The population here is stuck on brands. Most of the world is not, which is why Apple lags world-wide but is stronger in the U.S.

The fact that I am against it for many Mac users is like being against your religion. I can say one thing, and someone else will read my words and translate them into something quite hateful. The guy constantly following me around claims I said that the Mac is worthless. I asked him to find that statement and he couldn't. He merely decided I wrote that. I didn't. His clouded judgment saw what I said and decided that's what I wrote even though I didn't. He's like a 5 year old when it comes to someone saying anything not in favor of the Mac.

Alex Alexzander

[brian.lee]

Apple shouldn't change much they are doing a good job as it is. The only thing I can say is stop pulling resources from the Mac to the iPhone. Mac users are feeling it OS X is starting to feel sloppy and dated same goes for Mac build quality. You risk turning Apple into a one trick pony...

[Pete Bardo]

So, you think Apple should abandon it's successful business model and get into much more risky operations? What a great idea. I'll be the stock holders eat that right up!

[Kev_Orng]

Doesn't Apple already build an operating system that Ballmer and Company can't match?

Other than that, what's the point of Apple diluting their efforts more than they already have? iPhones and iPods and Apple TV and computers. That's four pretty solid pillars, and sure, you could probably make a strong case for gaming as well, but really, the aesthetic of Apple is in simplicity and brevity, and I can't imagine why their business plan would be any different.

Basically what we have here is a sense of wishful thinking, that Apple might bring their magic touch, or at least their RDF, to a host of other products that we wish were better. It's pointless conjecture, they're going to do what they want. It's like debating who would win in a fight between Star Trek and Star Wars. Just because your inner geek is crying out for it, doesn't mean that it can or should happen.

[Seaspray0]

Windows will not match osx and osx will not match windows on a whole range of subjects. It's not a one way street. They are different and as such, each has their own areas which can be considered superior to thier counterpart. Don't assume what you consider superior is what the rest of the world considers superior.

As for those pillars, the majority is iphone and ipod. Mac is now 3rd on that list. I'm surprised you would even consider apple TV a pillar when sales of those have been lackluster at best.

[inverse137]

No debt? That's just un-American!

From the president of the U.S. doubling the debt to $10Trillion dollars down to Joe the plumber that makes $40k annual and drives a Cadillac Escalade and has a 50 inch plasma tv...you have to be in debt to be american.

I think Steve Jobs must be crazy or a communist.

Doesn't he think about what he is doing to the country? The example he is setting?

No debt? ***?

[sythara]

Dividents!

[jpmays]

Hey Don... we know you're nothing but an Apple fanboy... you've already proven that! Maybe Apple should spend some money on educating you, teaching you how to actually write a real technology article instead of kissing Steve Jobs butt!

[yipcanjo]

Love it :)

[shycelticwitch]

Gee, this guy calls Don a butt kisser and gets away with it. I simply suggested that Apple give their excess cash to someone who could use it to buy some intelligence and they yanked my comment. I demand equal bashing time!

[dadsgravy]

"What Should Apple Do With All Its Extra Cash?"



Pizza party and all you can eat sundae bar.

[mel_inc]

Sit on it ... it would be un-American thing to do!

Furthermore, why would Apple 'buy' into other companies when its whole existence has been about building from within - building 'Apple' products! I say maintain course and have the cash on hand to see it through this uncertain time, while pumping more into its in-house R&D.

Build from within and the rest will want to follow Apple's lead!

[Kev_Orng]

Well, except for that one time when they bought NeXT and used the NeXTStep OS as the basis for Mac OSX.

[jandler]

blue chip

[daedbird]

While I agree with the general premise - that Apple shouldn't sit back and hold onto its money, I don't think they should just start acquiring because the price is cheap - after all, those companies are cheap for a reason. Some moderation in the good times will mean success even in the bad times. While I would love to see Apple take on Take Two and Sega to create a gaming company (weren't these two together when Sega made its own console) and erase the memories of Pippin, the big question would be "is the market already saturated with consoles?" After all, feeding games to another platform just doesn't seem to make sense, but would a new console be able to compete with the next-gen models from MS, Sony, and Nintendo? If Apple could reduce the cost of the Mac Mini, and expand wireless connectivity (for controllers) they could increase their chances of winning the digital hub race. Add Apple TV purchasing to Front Row, a digital TV input (and leave DVR software to the third-market to eliminate any anger by content partners) and that becomes a machine that can compete. Short of that, stay out of the market that killed so many...

A networked TV may be cool, or may be seen as a combination DVD/TV, which is a niche market. Once again, I would try to figure out how to make the Mac Mini cheaper, or add streaming ability to Apple TV....

As for his comments on the OS, well it wouldn't be a Reisinger column without some myopic comments, and those statements just show he really does not understand the computer industry.

[Vegaman_Dan]

I can't help but think of the old adage:

"If it isn't broke, don't fix it."

Gaming? I don't think Apple wants the headache involved in that very fast evolvng market. I do not believe they could keep up with the fickle nature of the consumers there.

Expand? I would rather see them invest in their own future by making sure their model is solid enough to last into the next CEO's tenure. Jobs won't be around foreveer and they really need to work on making it a smooth transition to the next leader. That alone should take up that cash surplus as a hedge.

OS XI: Apple has made it clear they aren't focusing on computers anymore. Each device they relieeae is getting farther and farther away from the harddware / OS market and into consumer electronics and services. That's also where the money is going in the market. It will be hard for them to top OS X without any new product looking like just new paint on an old pig (a nice and fast pig, mind you). People will want something revolutionary and I don't see that hapening with any OEM OS provider these days. Any new release looks more like just an update than a fresh new approach. Perhaps OS XI would be different, but I don't see it.

I would prefer they hold on to their cash or make sure they are ready for the new leadership when it comes along. Spending it now doesn't make sense to me.

[Penguinisto]

"Gaming? I don't think Apple wants the headache involved in that very fast evolvng market. I do not believe they could keep up with the fickle nature of the consumers there."

Funny, but the phone market is 100x more fickle, yet Apple seems to be doing more than just fine there.

"Expand? I would rather see them invest in their own future by making sure their model is solid enough to last into the next CEO's tenure"

Even funnier, because it seems that Apple's business model is more than solid enough - they're already punching well above their weight in that department, and unlike the 1990's, Apple has a solid team leading the joint that you don't normally see.

The company that invented the personal computer has no reasons to abandon it (no matter how hard you wish for that to happen).

OSX is developing just fine - the money can/should be spent on apps that not only can replace their PC analogues, but surpass them. Garage Band and the iLife suite are some solid examples... why not build an enterprise setup that replaces the disposable workstation business currently messes with, and works in concert with Linux on the back-end to provide a more solid infrastructure overall?

/P

[nouser]

Another classic example of why columnists don't run companies. If they did they would be out of business in the blink of an eye. Note to Don... keep your day job.

[verniverson_dotmac]

Apple should open a real support center for the Mobile-me service. It's a stunning shame for Apple to use a "chat" line to resolve Mobile-me problems. I just had me first contact with the chat line and it was a hellacious joke. Steve J, use some of your 24 billion and due what is right for your customers.

[Kev_Orng]

I'd love to see Apple get into game consoles. I also think the world would be a better place if they let Tim Burton handle the remaining Harry Potter movies. But just because I think he would do a better job, doesn't mean anyone is making any moves to make this happen.

[affinity13]

If they are hit heavily by the down turn, recession, or what ever it is called today...they should look internal at making their products better, and looking forward for the market up swing.... Due to Apple's current cash position as well as their increasing mind share, they can come out of this economic crisis better than ever...

[Arnav]

I am not so sure its such a good idea for Apple to join the video game business. The simple reason is that all 3 of the current gen consoles have an advantage when it comes consoles.
1) Sony and Nintendo have really strong experience in this and tonnes of engineers devoted to this division.
2) Microsoft on the other hand has something that others dont , Direct X . People forget that development for the xbox is really easy compared to the other consoles for the simple reason that Direct X was an established part of the PC gaming world and crossing over to Xbox is relatively speaking very easy for developers.
Apple on the other hand would have to go with IMO OpenGL which would require a lot more people.

Gaming is simply put a bad idea for Apple whose expertise is hardware no doub,t but what makes a console popular is not hardware but software and Microsoft's early foray and DirectX development base has what has led to its success.

[garymcmillian]

Apple should purchase RF spectrum and deploy its own 4G wireless network. (Or buy Sprint and finish deploying WiMax in the U.S.) This would remove the bandwidth impediment between its content servers and its users. Apple has retail stores to sell gadgets. It need bandwidth to deliver content.

[aztec92154]

Sprint:
Mkt Cap: 8.33B
Inst. Own: 92%
52wk Low: 2.90

Wow, this is a great idea! Apple buys RF spectrum or Sprint and delivers Movies, Music, Video games, and connectivity to the masses. :) I like the idea, its a good time for Apple to buy Sprint.