Apple’s success over the last few years has allowed the company to “save” a good deal of millions of dollars in its bank accounts. At Cupertino they have always been quite conservative with spending money and so at the moment they have a huge amount of cash. According to Moody’s, Apple could accumulate 170 billion dollars during this year, at least if the company doesn’t change its policies regarding dividends and share repurchases first.
According to Moody’s report, cash reserves among non-financial US companies were close to 1.45 trillion dollars at the end of 2012, more than a third of this amount (some 556 billion dollars) is in the hands of technology companies such as Google, Microsost, Cisco or Apple itself.
Last year Apple announced plans to distribute $2.5 trillion each quarter to shareholders in dividends, and said it would spend another $10 billion on share buybacks to recoup stock-based compensation for its employees. In total, this would amount to about $45 billion over the next three years.
Apple has plans to invest $10 billion this year
The company has also outlined plans to invest $10 billion by 2013. These plans call for $1 trillion to upgrade and expand its retail stores worldwide, $9 trillion in facilities and infrastructure (this would include new data centers, its new central offices and technical equipment to be installed at its partners’ sites to help ensure a good supply of components).
Despite having plans to start moving some $55 billion, Apple continues to generate cash flow, so its assets continue to expand. In the last quarter the company added $16 billion more to its cash.
There is no denying that for Apple having that cash cushion is something very important. It allows them to maneuver with some freedom and in case one of their new products fails in the market they would have no problem covering the development, research, marketing and other expenses caused by their creation. Even so, if the company moved that money it could continue to grow and recover the values of the shares it had some months ago.
In any case, we are sure that Apple will make good use of that money and will really know how to make good use of it.
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