How Much Cash Does Apple Have?

Oct 18, 2011
J. Webster
Comments Off on How Much Cash Does Apple Have?

$81.6 billion. That works out to about $88 in cash per share. That it all you really need to know. Yes it is an incredible pile of money. Scrooge McDuck swimming in a bank vault kind of money.

But the question now becomes what does new CEO Tim Cook and Apple do with all the cash. And, with most of the cash held overseas, will Apple get a tax break and bring all the cash back to the United States:

With the company’s cash reserves growing as fast as they are, it opens numerous possibilities for acquisitions. For comparison, Google’s recent $12.5 billion acquisition of Motorola would be a relatively small dent in Apple’s enormous cash mound.

During the call, Apple also announced that two-thirds of the company’s cash an investments are held overseas. Apple has recently backed a proposal for a tax holiday, under which companies such as Cisco, Oracly, Pfizer and Apple would get a tax break on earnings generated overseas.

If the proposed plan is accepted, these companies would have to pay a tax rate of 5.25%, as opposed to the 35% tax on profits generated outside of the U.S. The consortium of companies backing the plan claims the tax break would be justified by investing in research and hiring.

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