Analysis by Moody’s has revealed that Apple now owns 10% of all US corporate cash held by non-financial companies.
Apple’s massive pile of cash has been growing steadily for a long time, despite Apple’s dividend program, which began in March of last year, and a $10 billion share buyback program. Tim Cook has already announced that Apple plans to distribute $100 billion from its reserves through 2015. Yet despite this, Apple is still making more money than it’s spending.
Apple’s funds at the end of the June quarter measured $146.6 billion, compared to the US corporate total of $1.48 trillion. Apple’s 10% share is in stark contrast to rivals Google and Microsoft, who along with Cisco and Pfizer account for a further 15 percent.
Investor Carl Icahn, (iCahn is probably more appropriate) this week urged Tim Cook and Peter Oppenheimer to spend $150 billion buying back even more of its shares, over dinner in Manhattan this week.
Regardless of how Apple chooses to spend its cash in the coming years, it’s clear that Apple’s financial success is getting just a bit ridiculous. With the release of 2 brand new iPhones, it’s almost certain that Apple will post massive profits at the end of the next quarter.
Apple’s financial success is a testament to its decision to remain a company of premium devices and excellent services. Apple’s policy of calculated and measured releases and products has ensured its massive financial success in recent years. For sure, Apple can get it wrong sometimes (Maps-gate, antenna-gate), but in the long run, Apple has managed to remain not only a financially lucrative investment, but also a company that produces awesome products with equally well-established customer service care.