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 - 18:26 | 2094281 Cdad
Cdad's picture

LOL!  

So as the Chinese slave laborers jump from the roof tops to avoid having to work for Apple, dumb ass Americans not paying their mortgages blow cash on devices that are ALL largely redundant...as criminal syndicate Wall Street bankers sell the news in size from the first minute the shares were unhalted. 

Here come the dumb asses on the BlowHorn [CNBC] to tell any fool who will watch how this indicates upside for the stock market.  It all makes perfect sense...when you are living up the Banana Republic Tree.

Recovery!

Tue, 01/24/2012 - 18:52 | 2094368 francis_sawyer
francis_sawyer's picture

We live in a Banana Republic... & YES... we have no bananas...

Tue, 01/24/2012 - 19:01 | 2094385 dwdollar
dwdollar's picture

Yep!

"largely redundant" is how I describe the Apple product line. Except I would insert "overpriced" in front of that...

Apple is a train-wreck waiting to happen. It is the next RIMM, just wait and see.

Tue, 01/24/2012 - 18:23 | 2094269 tekhneek
tekhneek's picture

Too... many... ellipsis.... cannot... concentrate... on... message... being... conveyed... I... have... a... headache... now...

<3

 

Tue, 01/24/2012 - 18:46 | 2094345 NotApplicable
NotApplicable's picture

I always read comments like that in Shatner's voice.

Tue, 01/24/2012 - 19:31 | 2094495 LetThemEatRand
LetThemEatRand's picture

You really need to get out more.

Tue, 01/24/2012 - 19:25 | 2094476 ForTheWorld
ForTheWorld's picture

If anyone listened to Pay Day Today, they'd be a happy camper now:

http://www.zerohedge.com/news/goldmans-latest-trade-recommendation-sell-...

Tue, 01/24/2012 - 17:54 | 2094133 The Axe
The Axe's picture

I am shocked that it is only up 36 dollars.....crazy

Tue, 01/24/2012 - 17:55 | 2094145 monopoly
monopoly's picture

Well, it was 14 weeks, back out 2 weeks and I think that is your answer why it is not up more. But you cannot take anything away from this company. Imagine a country running this well. lol

 

 

Tue, 01/24/2012 - 17:56 | 2094160 Tsunami Wave
Tsunami Wave's picture

But AAPL should pay its fair share!!

 

</sarc>

Tue, 01/24/2012 - 18:04 | 2094193 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yuppies buy Apple because it is so hip

Yuppies are so hip

Chinese workers jump for joy!

Tue, 01/24/2012 - 18:34 | 2094312 alien-IQ
alien-IQ's picture

I didn't realize people still used the word "yuppie". That's way groovy daddy-o.

Tue, 01/24/2012 - 18:34 | 2094315 Cdad
Cdad's picture

Do you even know what a Yuppie is?  If you did, you would know that they are a dying breed...population in decline.  

Tue, 01/24/2012 - 18:47 | 2094351 NotApplicable
NotApplicable's picture

Funny how debt service costs work.

Tue, 01/24/2012 - 17:58 | 2094161 Dreadker
Dreadker's picture

I heard Apple will impose Oil & Trade sanctions on everyone if they continue developing primary wealth and don't buy iPads...

Tue, 01/24/2012 - 17:58 | 2094162 LouisDega
LouisDega's picture

Are those raindrops i just felt on my parade?

Tue, 01/24/2012 - 18:00 | 2094167 littleenglander
littleenglander's picture

Wow that's a lot of future landfill!

Tue, 01/24/2012 - 18:05 | 2094191 SheepDog-One
SheepDog-One's picture

Too bad a billion dollars sure aint what it used to be...so basically Apple has a few FED POMO operations, or about a weeks worth of new US debt created...big deal.

Tue, 01/24/2012 - 18:50 | 2094357 NotApplicable
NotApplicable's picture

Hey, somebody has to back up Brian Sack every once in a while.

I just wonder what sort of political ROI they are getting for helping Benron do the laundry?

My prediction? Ipads for all gov weenies, mid-level on up.

Tue, 01/24/2012 - 18:05 | 2094196 PicassoInActions
PicassoInActions's picture

all is good now, lets see what they have in the pipe line.... Ipad 3 may give a boost, next iphone in october, holiday season is over... it may not be that bright from now on.

Tue, 01/24/2012 - 18:07 | 2094207 FreeMarketBuff
FreeMarketBuff's picture

With 100 Billion you can pay off half the legislature...

Tue, 01/24/2012 - 18:08 | 2094213 yogibear
yogibear's picture

When they have a workforce of 8,000 slaves they can wakeup at midnight to produce I-Phones, I-Pads

 and Mac how can you beat that? 

Tue, 01/24/2012 - 18:07 | 2094216 css1971
css1971's picture

This is their zenith.

From here on in it's sequels.

Tue, 01/24/2012 - 18:09 | 2094220 Village Smithy
Village Smithy's picture

In terms of behavioural economics it makes perfect sense. The people are scared and lacking in confidence and individualism, as a result they huddle and seek external guidance.  Darwin would say that this behaviour conditioned the tribe so that it could be efficiently delivered from harrowing times by the rise of a great leader. In the modern day we go to the mall and buy brands so we feel like we have a common purpose. Meet your great saviour, it comes in a neat white box.

Tue, 01/24/2012 - 18:19 | 2094254 Belarusian Bull
Belarusian Bull's picture

Glory to the Ilord!

Tue, 01/24/2012 - 18:56 | 2094383 NotApplicable
NotApplicable's picture

"Don't worry, it's for your own good."

This is going to get really interesting as government bodies outsource their IT operations to Google.

Tue, 01/24/2012 - 18:11 | 2094231 Scalaris
Scalaris's picture

unibody capitalsim bchz - the iWay

Tue, 01/24/2012 - 20:02 | 2094572 pakled
pakled's picture

iWay or the Hiway.

 

Fixed it for ya. ;>

Wed, 01/25/2012 - 05:33 | 2095706 falak pema
falak pema's picture

your money or your wife becomes : your iphone or your ipad!

Tue, 01/24/2012 - 18:18 | 2094250 Zola
Zola's picture

In a free market this would not happen. The CNY should rise and hit profit margins of AAPL. And labor should stop accept being treated as slaves and demand pay raises.

Tue, 01/24/2012 - 21:07 | 2094704 Milestones
Milestones's picture

Might be interesting to see the same done here first. Its time for the merikans to put their $ where their advise is.      Milestones

Tue, 01/24/2012 - 18:22 | 2094263 moroots
moroots's picture

While there may not be a "windfall" tax, there actually is an existing tax that supposedly prevents companies like Apple from accumulating that much cash.  Not suprisingly, this tax is called the "accumulated earnings tax".  It only applies to C-Corporations.  The IRS can accuse corps of "hoarding" cash and if the IRS is successful (meaning the respondent corp can't prove that it isn't hoarding), a tax of 15% is applied to all assets determined to be in excess of what the business needs for working capital, business expansion, etc.  As with all tax-related litigation, the burden of proof is on the respondent to prove that the assets are necessary, again, for working capital, expansion, stock buy backs, dividends etc.

If there's a way to fleece successful businesses, you can assume Congress and the IRS have already thought of it.

Tue, 01/24/2012 - 18:33 | 2094310 ekm
ekm's picture

AAPL is a scam. No dividend and Steve Jobs then and the others now are hoping to lure everybody to bid the price up to gain...............nothing for the investors but a lot of insiders. A big company without divident is simply and purely a scam that relies on suckers.

Tue, 01/24/2012 - 19:28 | 2094311 TrickyEcono
TrickyEcono's picture

what does it mean "if cash were equivalent to gdp?"     do you understand that this statement is nonsense? 

Tue, 01/24/2012 - 18:48 | 2094350 taniquetil
taniquetil's picture

Bearish

Tue, 01/24/2012 - 18:57 | 2094386 SRVDisciple
SRVDisciple's picture

 Just think what would happen if they opened up a Men's Department at all the Apple stores ...

Tue, 01/24/2012 - 19:44 | 2094525 poor fella
poor fella's picture

Damnit!! I just spit my beer and farted at the same time!

Tue, 01/24/2012 - 19:48 | 2094544 poor fella
poor fella's picture

Coach beat too - seeing strong demand in products for men....   ?

That's A LOT of toiletry bags.

Tue, 01/24/2012 - 19:21 | 2094467 ZeroPower
ZeroPower's picture

Pretty sure Reggie has a negative thesis on this stock since 2Q11...

Tue, 01/24/2012 - 19:57 | 2094562 pakled
pakled's picture

I would feel really good about Apple's success.....

 

If it wasn't for the recent reports about working conditions at the Chinese factories where the products are made.... suicide nets around buildings. Workers spending days on rooftops, threatening to jump unless conditions improve. Workers living in 6 person dorm rooms and not knowing each others name. Will we buyers of Apple products take to the streets (or lock down our wallets) in protest? If not, why not?

Tue, 01/24/2012 - 21:50 | 2094787 ucsbcanuck
ucsbcanuck's picture

Dude, come on! Check your morals at the door :-)  

The anti-globalization crowd and the hipster douchebags already did so. Bunch of hypocrites "Oh dear beloved leader Steve Jobs has passed away".

Let's cut the hypocritical crap - AAPL is a business. People keep AAPL in business by buying their products. AAPL keeps their costs down by outsourcing their manufacturing to FoxConn. AAPL doesn't own the factory, FoxConn does.  

That's all and that's it. 

And here's another thing to consider - let's say AAPL dropped FoxConn and went somewhere else. What happens to the FoxConn workers then? Go back to the countryside to starve?

 

Wed, 01/25/2012 - 06:12 | 2095720 prole
prole's picture

let's say AAPL dropped FoxConn and went somewhere else.  What happens to FoxConn workers then?

Let them eat cake!

What happens to the workers is not the concern of the "anti-Capitalist" moral superior chest thumpers. They want to man their barricades and wave the red banner.

BTW "if" and I say "IF!" conditions are so horrific at this FoxConn, why don't the persons who CHOSE to work there QUIT! HELLO!!! Are they imprisoned there? Is Steve Jobs alive and kidnapping Chinese people himself?

Quit if it sux so bad/ I didn't think so.

I've had jobs that sucked but I quit I didn't kill myself (Yet, I'm not better than anyone else) and not one single global news organ gave a flying fvck if my job sucked. Where were they when my job sucked?

Tue, 01/24/2012 - 20:14 | 2094593 Mad Cow
Mad Cow's picture

iDIOCRACY

Tue, 01/24/2012 - 20:15 | 2094597 Offtheradar
Offtheradar's picture

Who the hell needs to keep that much cash?  Flush it to the shareholders already. 

Tue, 01/24/2012 - 22:13 | 2094858 ucsbcanuck
ucsbcanuck's picture

You can buy up startups, IP portfolios etc without having to go into debt. Helps you ride out the bad times as well.

Wed, 01/25/2012 - 08:12 | 2095780 DanDaley
DanDaley's picture

You just know Obama is salivating over that cash and thinking nationalization and redistribution to the have-nots...Apple and others.

Tue, 01/24/2012 - 20:18 | 2094606 Bunga Bunga
Bunga Bunga's picture

Also extrapolating into the future in 2026 Apple's revenue at 66% growth will be bigger than the world's GDP at 4% growth! It means Earth would not even exist then without Apple.

 

 

 

 

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