Apple's Year End Cash Equivalent Of $97.6 Billion Makes It The 58th Largest Economy In The World

Tyler Durden's picture




 

After generating $37.9 billion in cash, short and long-term equivalents in 2011, and a record $16 billion in Q4 alone (of which $11.8 billion in Long-Term Marketable Securities: Treasurys? Pretty soon Apple will be a bigger monetization force than the Fed), the company's total cash and equivalents horde is now just shy of $100 billion, or $97.6 billion. And with cash growing at 20% in the quarter, extrapolating into the future, means that the company will hit $1 trillion in cash by Q1 2015. Looked at otherwise, if Apple were a country, and its cash was equivalent to GDP, it would rank as the world's 58th largest economy, above such countries as Slovakia, Iraq, Luxembourg, and Syria. At least now we know where all that money that is not going to pay mortgages, is going. Next question: how long until uncle Sam demands windfall tax, or until the FoxConn workers learn to read press releases and politely request a pay raise or they all jump?

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Tue, 01/24/2012 - 17:47 | 2094092 slaughterer
slaughterer's picture

I want to live in the Republic of Apple from now on.  

Tue, 01/24/2012 - 17:55 | 2094140 VanillAnalyst
VanillAnalyst's picture

bet it would be just like the smug pollution episode of south park. Screw Apple and their bullshit hipster meets technology business model. MSFT EXCL FTW.

Tue, 01/24/2012 - 18:08 | 2094217 slaughterer
slaughterer's picture

So angry, whereas AAPL ...  so successful and rich. 

Tue, 01/24/2012 - 18:36 | 2094319 Kick_the_Kan
Kick_the_Kan's picture

great for them to be accumulating all this cash but I wouldn't be too happy if I was a shareholder and some of it didn't get returned as dividends.....thats a lot of cash to have parked in low yielding treasuries or interest bearing accounts with real inflation eating away at it at the rate of 10% per annum 

Tue, 01/24/2012 - 18:53 | 2094374 Manthong
Manthong's picture

Hmmm.. 

At over $400 Billion, AAPL is worth about $50 Billion more than that little stash of gold the Fed has at 33 Liberty Street.

Or is it?

Tue, 01/24/2012 - 19:40 | 2094512 TruthInSunshine
TruthInSunshine's picture

Apple is building an elite military, and plans in invading large chunks of Afghanistan, China and Tibet, in a bold move to ensure a steady supply of rare earth metals.

Building a military force capable of taking and holding these areas will be a cash burn intensive endeavor.

Hedge accordingly.

Tue, 01/24/2012 - 20:14 | 2094596 baby_BLYTHE
baby_BLYTHE's picture

they already have the U.S. military backing them up free of charge!

Wed, 01/25/2012 - 00:28 | 2095383 johnu1978
Tue, 01/24/2012 - 20:18 | 2094612 HedgeAccordingly
HedgeAccordingly's picture

yes hedge accordingly 

Tue, 01/24/2012 - 20:35 | 2094646 Dingleberry
Dingleberry's picture

Why can't I get some Chinese slave labor? Damn, that is serious money......

Tue, 01/24/2012 - 20:37 | 2094653 pkea
pkea's picture

who needs to buy 37 million iphones per quarter? the people are stupid and you can surely count on that:)

Tue, 01/24/2012 - 17:46 | 2094093 Gubbmint Cheese
Gubbmint Cheese's picture

I wonder if they'd be interested in buying some italian bonds...

no?

Greek bonds?

 

Tue, 01/24/2012 - 17:54 | 2094138 CClarity
CClarity's picture

I think we need them to keep buying USA.  If people are worried about Greek or Italian debt, just imagine what hell would break loose if US debt buyers, I mean "investors", dry up?

Tue, 01/24/2012 - 18:40 | 2094328 Manthong
Manthong's picture

"Greek bonds?"

Um.. I think they can buy the country outright.

I'm just ticlked pink that we now have confirmation all the problems of the world are solved.

Tue, 01/24/2012 - 18:59 | 2094394 Buttertooth
Buttertooth's picture

While reading your comment on Apple buying Greece outright, I couldn't help but imagine an old sci-fi movie from the 70's.  The ancient ruins of the greeks delicately decorated with the latest technological gadgets. Polyester clad men and woman, careless and unafraid, roam the stone streets.   

Tue, 01/24/2012 - 19:05 | 2094411 Roy T
Roy T's picture

As I said on the other post, next I'd like to see the IMF go begging to AAPL after China and Brazil to help increase their firepower.

Tue, 01/24/2012 - 17:47 | 2094094 fonzannoon
fonzannoon's picture

I don't know why it took me so long to realize that if you are short a market that has tsunami after tsunami of liquidity rolling in you will get crushed.

Tue, 01/24/2012 - 17:53 | 2094128 SheepDog-One
SheepDog-One's picture

What 'liquidity' is rolling in where? Isnt Apple supposed to be paying dividends instead of hoarding cash as a public company?

Tue, 01/24/2012 - 18:36 | 2094273 hedgeless_horseman
hedgeless_horseman's picture

 

 

Silly Sheepdog, Apple is not an income stock, it is a growth stock, just like UNH, AET, WLP, CI, CVH, and HUM.  These growth stocks all focus on growing revenues every quarter so that the management can meet the bonus requirements.  This is hard to do, because they must either get more customers/sales like Apple, or raise the price of the product while decreasing expenses, just like these health insurers are all doing.  Now do you see why these growth companies all have such high PE ratios? 

Tue, 01/24/2012 - 17:54 | 2094132 disabledvet
disabledvet's picture

Your timing would have to be perfect shorting this market three years running. Since that's impossible you are obviously a liar. But that's okay.

Tue, 01/24/2012 - 18:00 | 2094168 fonzannoon
fonzannoon's picture

Who has perfect timing and who is shorting the market 3 years running and why is lying? Sorry no idea what you are talkng about. But thats okay.

Tue, 01/24/2012 - 18:02 | 2094176 SheepDog-One
SheepDog-One's picture

And youll find out the same too one of these mornings when the FED pulls the rug out and chops off all these arrogant bulls nuts, you cant 'time' it when youre dealing with market manipulating supercomputers. 

Tue, 01/24/2012 - 18:03 | 2094189 fonzannoon
fonzannoon's picture

it won't end well. But it seems like a losing proposition betting against them in the meantime.

Tue, 01/24/2012 - 18:07 | 2094212 SheepDog-One
SheepDog-One's picture

Well I said long ago Im not betting against them at all other than buying gold and silver.

Tue, 01/24/2012 - 18:10 | 2094224 fonzannoon
fonzannoon's picture

I will admit I am totally lost on the apple story. I just don't see how that many people have that kind of cash to piss away on a phone that allows you to check your facebook account. I guess I will never get that.

Tue, 01/24/2012 - 18:23 | 2094268 SheepDog-One
SheepDog-One's picture

Other than people with extra money from not paying their mortgages anymore, I dont know where the cash comes from. 

Tue, 01/24/2012 - 18:29 | 2094297 IndicaTive
IndicaTive's picture

Because it makes it easy to be a "tekkie," or at least look like one.  No intelligence required. And when it breaks, you get to go to a hip and trendy Apple Store where they treat even the most obvious of idiots like they are geniuses and fix it for them for $200 minimum. Never underestimate the premium people will pay you to dumb it down for them. Fucks sake.

Tue, 01/24/2012 - 17:48 | 2094103 ihedgemyhedges
ihedgemyhedges's picture

Luxembourg would be a nice acquisition for them.  Would pass on the rest of them............

Tue, 01/24/2012 - 18:37 | 2094322 Elwood P Suggins
Elwood P Suggins's picture

Yeah they could fire that asshole Juncker.

Tue, 01/24/2012 - 17:49 | 2094106 fonzannoon
fonzannoon's picture

"At least now we know where all that money that is not going to pay mortgages, is going"

In America you can stop paying your mortgage, stay put in your house for several years before the bank gets around to you, and have plenty of money to piss away on Ipadpods.

Tue, 01/24/2012 - 17:49 | 2094108 I am a Man I am...
I am a Man I am Forty's picture

Where is Reggie and his nonsense, I want an apology.

Tue, 01/24/2012 - 23:08 | 2095148 hotkarlandthecl...
hotkarlandtheclevelandsteamers's picture

What are you talking about Reggie shorted in AH at 461 and closed it out at 451.  The big black man will be on hear with a post pumping his chest telling us how he all told us so.

Tue, 01/24/2012 - 17:49 | 2094112 The Axe
The Axe's picture

How can analsist be that off...lol

Tue, 01/24/2012 - 19:09 | 2094426 ForTheWorld
ForTheWorld's picture

Well, with the application of topical alcohol and the swift movement of a scalpel, any analsist can be off, like that.

Wed, 01/25/2012 - 10:46 | 2096141 falak pema
falak pema's picture

being anal is not banal, but is it sistemic risk?

Tue, 01/24/2012 - 17:51 | 2094122 alien-IQ
alien-IQ's picture

If Apple were a country...America would probably find an excuse to bomb it into the stone age.

Either that or they'd force them to join the Euro.

Tue, 01/24/2012 - 18:17 | 2094248 Goldilocks
Goldilocks's picture

Yah, no kiddin’... makes yah wonder if the PTB have a symbiotic relationship with Apple, via the i-spy phone.

Wed, 01/25/2012 - 10:41 | 2096131 falak pema
falak pema's picture

I wonder how much Apple has to pay to not get milked by Congress, given the budget deficits, that keep up with Apple's profits; but in backwardation waltz not contango tango; apart from handing out its shares free be to TPTB. O'bammy loves Mrs Jobs, and I think she will now have her hands full making appearances for O'bammy on election trail. Luckily for her, he is no Bill C or Newt G, or she would be out of mourning and into pink panties before you could say "yes we can!" on their behalf. She should not stay single for long. There will be a long horn to sing her a morning song, I'll eat my Ipad, if that is proven wrong!

Tue, 01/24/2012 - 17:51 | 2094123 Belarusian Bull
Belarusian Bull's picture

Soon, Apple will be able to buy Greece. With cash upfront.

Tue, 01/24/2012 - 17:56 | 2094147 prains
prains's picture

Soon, Apple will be able to buy Greece. With cash upfront.

 

soon it'll be able to buy california for a case of fartknuckles

Tue, 01/24/2012 - 18:17 | 2094246 Belarusian Bull
Belarusian Bull's picture

So, time to long fartknuckles(whatever they are)?

I want a california as well.

Tue, 01/24/2012 - 20:53 | 2094645 prains
prains's picture

Trade them at your peril

 

Point taken, this is a trading blog but from what I read here at ZH we're down to farting on our hands

and trading the smell, nothing left to do but watch people exit the room. Hence, fart knuckles

Tue, 01/24/2012 - 17:52 | 2094124 youngman
youngman's picture

It makes me laugh..but Apple is a very liberal company....but yet it manufacturs in China mainly.....but no problem with the liberals on that..and they gouge you with the price...greed comes to mind...but that is ok with the liberals...its only bad if you are an oil company or health company....what a double standard....Apple has destroyed many business´s ..but that is OK too...its Apple...buy away...its a religion...but liberals don´t like that either....

Tue, 01/24/2012 - 17:56 | 2094151 alien-IQ
alien-IQ's picture

Would you be happier if people used stone tablets and a chisel?

Come on man, really? Does everything have to boil down to this ridiculous liberal/conservative/democrat/republican nonsense?

It's a fuckin computer for god sake.

Tue, 01/24/2012 - 20:55 | 2094683 Arthur
Arthur's picture

Very true.  

Always liked Apple but they cost more and until recently Apple products did not play well in Microsoft dominated office environment.   If  I wanted to take work home I had to have a windows based machine in past years.  Now it has changed.  Apple cultivated a cult feel/brand loyalty and it worked because they also built a superior integrated products.

liberal /conservative has nothing to do with anything unless one to use the poor anaolgy of microsoft as conservative and apple as liberal bu then what the heck are linux and android/google based products?

Tue, 01/24/2012 - 17:56 | 2094154 disabledvet
disabledvet's picture

"greed is good. But we're selective...

Tue, 01/24/2012 - 18:00 | 2094173 LetThemEatRand
LetThemEatRand's picture

you are an incredibly simple-minded fella, aren't you?   how does your worldview handle the fact that a "liberal" company is so hugely successful?

Tue, 01/24/2012 - 18:12 | 2094233 youngman
youngman's picture

"how does your worldview handle the fact that a "liberal" company is so hugely successful?"

Thats the point I am making...I do not have a problem with it...but tonight you will hear all about the wealthy fair share....and how oil companies gouge...and health companies gouge..and insurance companies gouge...but to me ...Apple gouges more....but yet not a peep out of a liberal for it....I am all for success and I am all for not being shit on because you are succesful...maybe you liberals can learn something from Apple...and let the rest of us go and do what we think is best....

Tue, 01/24/2012 - 18:21 | 2094259 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

+1 youngman...u hit the nail on the head with liberal double standard regarding Apple...that said not a company I'd short anytime soon.

Tue, 01/24/2012 - 18:21 | 2094260 SheepDog-One
SheepDog-One's picture

Apple...where liberal douchebags throw all their high minded ideals to the winds and glom onto slave labor built overpriced religious cultist gizmos they largely dont need.

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