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Apple Cash Hits $110 Billion, Up $12.6 Billion

Tyler Durden's picture


If there is anything at all less than superlative that can be said about Apple's consolidated cash hoard, which grew by $12.6 billion in the quarter and double from a year earlier, is that it is a tad less exponentially than before. Still, not bad: the country's cash stash is nearly enough to cover the first Greek bailout (will need to wait 2 more quarter for it to be sufficient to pay for the fifth one).


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Tue, 04/24/2012 - 18:54 | 2371798 blunderdog
blunderdog's picture

You oughta lighten up on the drugs, dude.  You're incoherent again.

Tue, 04/24/2012 - 17:13 | 2371577 monopoly
monopoly's picture

Just like the Energizer bunny, just keeps on ticking.

Tue, 04/24/2012 - 17:15 | 2371585 bobola
bobola's picture

Are they ready to buy an iphone outlet, like a Sprint...???

Tue, 04/24/2012 - 17:15 | 2371588 fonzannoon
Tue, 04/24/2012 - 17:18 | 2371599 LeftyGoldblatt
LeftyGoldblatt's picture

Slavery still works! Hurray!

Tue, 04/24/2012 - 17:23 | 2371622 Sudden Debt
Sudden Debt's picture


Tue, 04/24/2012 - 17:22 | 2371614 resurger
resurger's picture

More for the have's

Tue, 04/24/2012 - 17:25 | 2371629 adr
adr's picture

Anyone with a brain would know that Apple would beat on earnings and revenue. Apple always sandbags and has only missed what? Once in the past 7 years.

The beat wasn't very good. A few weeks ago analysts were expecting earnings above $20 a share. $12 is supposed to be a fantastic beat???

In my book Apple blew the quarter. For the rise in its stock a lousy $12 a share is crap. But the sheeple will eat it up and the hedgers will drive the stock back to exponential shit.

By the way most of the earnings were based on sales to carriers that were already booked and languishing on shelves. The slow sales showing up on the books of Verizon will show up next quarter when they don't need to order as many phones. Apple channel stuffed retailers like GM.

Tue, 04/24/2012 - 17:27 | 2371632 NotApplicable
NotApplicable's picture

They should leverage that money up a few times and bailout the whole world.

Tue, 04/24/2012 - 17:32 | 2371652 Frastric
Frastric's picture

Apple missing a trick here... Apple $1000 if it announces it will invest all that cash to business expansion... All those Apple lovers will jizz their pants...

Tue, 04/24/2012 - 17:42 | 2371666 bullmkt
bullmkt's picture

still bearish,ZH?

Tue, 04/24/2012 - 18:19 | 2371736 GernB
GernB's picture

Yes because Apple's outlook fixes all debt problems and puts every economy in the world back on a sustainable path.

Tue, 04/24/2012 - 18:23 | 2371742 blu
blu's picture

Well -- it's not like that was mentioned in the corporate outlook.

Tue, 04/24/2012 - 17:47 | 2371679 Kaiser Sousa
Kaiser Sousa's picture

Fuck Apple...I'm sick about hearing how this company that produces Ishit that broke ass Americans increasingly will not b able to afford somehow has anything to do where this bankrupt ass cesspool the USA is headed....
Can Apple change the underlying economic fundamentals of this banana republic which r rotten to the core??????
FUCK fuck Apple.....

Tue, 04/24/2012 - 18:41 | 2371766 magpie
magpie's picture

Dunno, being an Apple Republic sure has a happier ring to it than Banana Republic - you know, the kind of Republic where millionaires sell apples at the road side...

Tue, 04/24/2012 - 17:55 | 2371696 WTF_247
WTF_247's picture

If they can just build it up a bit more, there will be enough dough to tempt the govt to take it all.  The govt has it all worked out -  they will nationalize Apple (in the name of national security of course) take the dough.  It will be "fairness" in action.  After all - Apple's profit margin is much higher than other companies and they earn far more than most of companies.  Its only fair that we redistribute that wealth to make everyone equal.  It is not fair that Apple earns so much while others do not.

Tue, 04/24/2012 - 18:00 | 2371706 orangegeek
orangegeek's picture

Maybe the Congress and Senate should be replaced with Apple's board members.  Tim Cook can replace Obama.

Tue, 04/24/2012 - 18:16 | 2371730 Ewtman
Ewtman's picture

Here is what I find interesting about this fact. If, in fact, Robert Prechter and his ilk, the deflationists, are correct and the global economy collapes in a deflationary spiral over the next half decade, then Apple's cash position will make them extraordinarily rich. Extraordinally is probably an understatement.

As the theory goes, the only thing resembeling a reserve currency is the U.S. dollar. There are other fine currencies, France, Germany, China, etc., but there aren't enough of those currencies combined to pay off a significant portion of the global debt in a crisis situation. Thus, owners of debt will understandably demand dollars when (or if?) the next economic crisis plunges the world into financial chaos. Simply because there are more of them, bond holders and other debt holders will prefer them ergo their value goes up--- not down as the inflationist would argue.

Under this premise, commodities (including precious metals), stocks, bonds, real estate, etc., will collapse in value as debtors scramble to pay down their debts in dollars. This view negates any Wiemar-like scenario happening to the dollar.

Second thus, if Apple is holding dollars as they increase in value, using them only sparingly to keep afloat for the next few years as the economy bottoms (2016-18 or so according to the deflationists) they will be positioned in a place so lofty only winged beasts have been there.


Tue, 04/24/2012 - 18:25 | 2371747 GernB
GernB's picture

You're supposition that deflatuion and inflation are mutualy exclusive is not necessarily true. It presumes 1) that markets are monolithic and you cannot have inflation in one area and deflation in another 2) that the two things cannot occur in sequence, meaning you cannot have hyperinflation until currency is destroyed then crushing deflation as the economy resets.

You're specuilation with respect to Apple may also be incorrect. Where exactly does this cash reside, in some crash-proof bank. If it is invested anywhere it is at risk.

Tue, 04/24/2012 - 19:22 | 2371771 Ewtman
Ewtman's picture

I implied nothing. Nor did I speculate... I supposed. As for your item 1, we see that scenario today where your house is worth half of what it was a few years ago but groceries and gasoline require a loan to purchase. That has nothing to do with what I described. Item 2, hyper-inflation could occur beginning tomorrow if that is what the markets want. It is simply unlikely the markets will accept inflation if a deflationary spiral is their preferred remedy for the debt situation.

Tue, 04/24/2012 - 19:26 | 2371850 blunderdog
blunderdog's picture

   If, in fact, Robert Prechter and his ilk, the deflationists, are correct and the global economy collapes in a deflationary spiral over the next half decade...

See, that's the thing--you can stop right there.

HOW could Prechter be right?  Every printing press on the planet is controlled by folks who are deep-six committed to PREVENTING deflation.  Some have even been candid enough to assert that they're trying to produce inflation.

If the deflationary threat materializes, I guarantee any potential project to implement a new currency would be accelerated toot-sweet, yanno?  If you never believed in the potential "Amero," let's talk again after the first major wave of deflation.

Wed, 04/25/2012 - 04:33 | 2372632 Ewtman
Ewtman's picture

I hear what you're saying, but the monetized value of global debt is well over $650 trillion dollars. And that is NOT considering the effect of derivatives on that debt. While the central banks may want to engage the printing presses enmass, their presses would do little to monetize a significant portion of an animal that large. Their puny printing efforts would amount to something like trying to fill a lake with a garden hose. While you could be right about the possibility, it is doubtful implementing the Amero would help solve (or even slow) such a grand collapse. 

Wed, 04/25/2012 - 10:07 | 2373221 blunderdog
blunderdog's picture

You float new currencies when the agreements made using the previous ones can't be maintained.  That's what I'm saying.  If the CBs can't prevent deflationary death-spiral, the only remaining option will be to ditch the dollar.

And ditch it they will.

War's a likely result, so we'd probably get that too.  But when the dollar dies, so does most of that $650T you're talking about.

Wed, 04/25/2012 - 23:05 | 2375500 Ewtman
Ewtman's picture

Mad Max? :-)

Tue, 04/24/2012 - 19:42 | 2371890 Xkwisetly Paneful
Xkwisetly Paneful's picture

50% of it resides in US treasuries.

Go back to DEC 2008(before the FED starting buying their own crap en masse) and can see exactly what happens to the dollar and US bond market when shit hits fan.  

A hint: bonds yielded less than transaction costs. For a currency that died 23,432 times in 40yrs and a banana republic issuing credit paper, the world couldn't get their hands on it fast enough.

Tue, 04/24/2012 - 19:49 | 2371908 tmosley
tmosley's picture

Clownshoes thinks it could never happen here.  Who agrees with him?

Tue, 04/24/2012 - 21:52 | 2372083 Pure Evil
Pure Evil's picture

Is it Clive Suck-A-Nut now masquerading as Apple's Darth Sidious?

Tue, 04/24/2012 - 18:30 | 2371751 blu
blu's picture


I have recently been wondering if the internet will somehow become more central to the coming shit-storm even than money. Information being the key, as it were. It would be a game changer if mobile devices and mobile apps were able to fill the role of newspapers and government. I don't know how well the network will survive in the absence of capital investment, but I know ad hoc networks are really cheap, virtually free.

If Apple ended up with a cash horde, and were sitting astride the mobile network, it's hard to say what they could leverage out of that. A place so lofty, indeed.

Now I'm sounding like Steve Jobs.

Well. That can't be too bad a thing, now can it.

Tue, 04/24/2012 - 18:28 | 2371750 BORT
BORT's picture

How does this play out??  Is this channel stuffing?

From Sprint Report

We are a party to other commitments, which includes service, spectrum, network capacity and other executory contracts in connection with conducting our
In September 2011, we finalized a four year minimum purchase agreement with Apple for smartphone devices estimated to be approximately $15.5 billion
over the term of the agreement. Our ultimate spend with Apple will depend on many variables, including anticipated rate of future subscriber growth, number of different
devices offered, and the cost of devices offered. We anticipate exceeding the current contractual minimum commitment for the iPhone® over the four year period.
As of December 31, 2011, the minimum amounts due under other commitments were as follows:
Amounts actually paid under some of these agreements will likely be higher due to variable components of these agreements. The more significant variable
components that determine the ultimate obligation owed include such items as hours contracted, subscribers and other factors. In addition, we are a party to various
arrangements that are conditional in nature and obligate us to make payments only upon the occurrence of certain events, such as the delivery of functioning software or a

Tue, 04/24/2012 - 18:45 | 2371779 navy62802
navy62802's picture

Nevermind that North Korean nuclear test happening in a few hours.

Tue, 04/24/2012 - 18:50 | 2371793 magpie
magpie's picture

Why ? Are any iGadgets involved in it ?

Tue, 04/24/2012 - 20:48 | 2371983 Zgangsta
Zgangsta's picture

So what?  They've already proven they can't fly them anywhere.  Unless they're gonna threaten to nuke themselves...

Tue, 04/24/2012 - 19:06 | 2371822 YesWeKahn
YesWeKahn's picture

When it comes bailing out the banks in 6 months, I would use this cash instead of tax payer's $. This is illegal capitalism, we only accept socialism here.

Tue, 04/24/2012 - 19:15 | 2371839 CryingBear
CryingBear's picture

i just took a loan out and bought AAPL dec 1000 calls

Tue, 04/24/2012 - 20:43 | 2371973 junkyardjack
junkyardjack's picture

A wise man

Tue, 04/24/2012 - 20:38 | 2371932 Yen Cross
Yen Cross's picture

 Some one told me that Steve Jobs was on EXHIBITION.?

    He's the " Tupac" hologram, For AAPL guidance, in Third World Countries!  APPL is now the " go to" medium for ORGAN transplants!

Tue, 04/24/2012 - 20:38 | 2371965 junkyardjack
junkyardjack's picture

Apple still rolling hard, BTFD in the morning

Tue, 04/24/2012 - 20:41 | 2371972 WallStreetRanter
WallStreetRanter's picture

Title of post is actually incorrect. Apple's CASH is definitely not $110B -- a very inclusive LONG-TERM INVESTMENTS is included in that figure.

The Wall Street Ranter

Tue, 04/24/2012 - 20:55 | 2371992 orangegeek
orangegeek's picture

Share price reflect future potential.  Yes, there will be a jump in the morning.


Indexes indicate trend and regardless, the NASDAQ and SP500 don't seem to be off to new highs.

Tue, 04/24/2012 - 21:01 | 2371998 Papasmurf
Papasmurf's picture

Is this cash in TBTF banks?  They better convert it to i-Inventory.

Tue, 04/24/2012 - 21:10 | 2372013 disabledvet
disabledvet's picture

Ideally they'd put that cash hoard to work making more of what they're making..."only new." Apple TV comes to mind (obviously). We shall see. I'm sure it makes the CEO Tim Cook uncomfortable having it kow-tow? Chinese authorities. I'm sure there are many US politicians who would love to have their picture with him. You'd be surprised how good salesman they can be too!

Tue, 04/24/2012 - 21:11 | 2372014 dolph9
dolph9's picture

Has everybody gone insane?

Doesn't anybody remember just how revolutionary personal computers and the internet were as they really began to take off in the 80s and 90s?

Compared to that, iShit is pretty much worthless.

I feel like an old fogey because I believe there's more to life than checking your Facebook account every 5 minutes with your head buried in a gadget, completely oblivious to the world around you.

It's actually pretty sad.  I don't know what's more pathetic:  that I don't care about this stuff, or that so many others do.  Feels like being the last sane human on the planet, know what I mean?

Tue, 04/24/2012 - 22:43 | 2372173 Pure Evil
Pure Evil's picture

You just don't get it do you grandpa, the whole purpose of these iGadgets is to inure the debt slaves to the idea that Big Brother is constantly tracking them everywhere they go. Once you get the sheep to accept tracking devices in their iGadgets, they'll be as equally accepting of tracking devices in their vehicles and home appliances. Who needs an Rfid chip under the skin when the proles are more than willing to carry around tracking devices on their person. They can track everything from movement to email to phone communications.

Americans so concerned about their privacy carry the very electronic devices used to track their movements and and snoop into their communications. So what's next, chips that pick up the very electromagnetic waves produced by the brain? The Air Force already has in development helmets that can read the brain waves of pilots. Now they're tracking your movements, reading your emails, listening to your phone conversations, next they're reading your thoughts as you walk around with your iGadget.

So, Windsor, get with the program before we ship you off to the Soylent Green factory.

Tue, 04/24/2012 - 23:03 | 2372249 20-20 Hindsight
20-20 Hindsight's picture

I'm totally with you on that: the world has gone insane.  If you go to a music festival, you will see thousands of apathetic kids texting each other while the band playing in front of them is doing everything to get their attention.  Of course, after each song, the thousands of i-phone slaves scream at the top of their lungs, "woo-hoo!... that was awesome, dudes", but they never paid attention to what was going on for more than ten seconds.  Then they text one another all the way home, asking where they are, where they're going, what's up, cool, see ya at the next great show... 

Tue, 04/24/2012 - 21:23 | 2372016 Yen Cross
Yen Cross's picture

 I'm long " InTrade".  Screw trading/ techs and fundamentals!    


   "Ticker Symbol", trading, is where it's at!  MAJOR sarc/

Tue, 04/24/2012 - 22:31 | 2372156 earleflorida
earleflorida's picture

The Apple of my, i ?  Not so fast,... they don't lowball - the mean average does the low-balling for-em?

Earnings were more in the $13.50 range, and definitely came under. i-Repeat!

Yes, they are channel-stuffing!

Next new product line unveiling of iphone won't be out til ~ late sept/ early Oct/12 - that's a long way off [if qualcomm comes through in time with [?] proper debugging?] and alot of cannibalization can take place when your hungry for revenue to meet higher, and higher expect's?

Samsung's Galaxy-S III unveiling May 3,2012 - that's an infinite amount of time to extinguish/ weaken a competitors i-hopes,... in the fickle i-world we've been i-doctrinated i-n? 

Nothing new here, except - U.S. Carrier's have i-out for subsidy cuts with quality low-ball smartphone similar to last i-generation daily assembly-line i-generic i-phone,... i-correct? We shall know on G-oo-Gle's Zippy? Something called, 'aliittle thing called love', ie. "ZTE Corp" {SmartPhone's].

Ps. Apple doesn't like a free internet, or open-internet if anyone has cared to notice.

JMO :-))   Thankyou Tyler

Tue, 04/24/2012 - 22:39 | 2372186 Freebird
Freebird's picture

Apple have challenges ahead. How many mobile device companies have consistantly performed year in year out? Remember Motorola who had significant cell marketshare way back & were no 1. Nokia had what close to 40% global market share at one time - the point is its a tough game. Samsung toppled Nokia big time & it was obvious to the trade 10 years ago that they made a better phone. Serious users, early adopters say the Samsung Galaxy is better than an iphone & tablet geeks are indicating that Samungs new ipad beater due in Q3 is exactly that.. So no axe to grind but nothing suprises.

Tue, 04/24/2012 - 22:54 | 2372227 cnhedge
cnhedge's picture


An update on TARGET2

Wed, 04/25/2012 - 01:27 | 2372485 williambanzai7
williambanzai7's picture

I read all the media commentaries on China, China labor exploitation, China consumerism, Apple,etc.

I'm no expert, but I have spent a considerable amount of time observing and interacting with the Mainland Chinese and I think it is fair to say that most of what is said on these topics is said by people who haven't the slightest fucking clue what they are talking about.

You will find that the people who really spend lots of time studying modern China are very reluctant to put forward simplified conclusions and opinions because the whole thing is confounding and the jury is definitely still out.

Wed, 04/25/2012 - 02:38 | 2372558 Yen Cross
Yen Cross's picture

 This may be a bit un/nerving banzai. Facts are Facts. This is the largest " Auto Show" in the world for 2012!

Do NOT follow this link or you will be banned from the site!