Apple's cash heap could top $170 billion by year's end

By on March 20, 2013, 7:30 AM

The latest report from Moody’s Investors Services said Apple’s cash hoard could top $170 billion by the end of 2013 unless the tech giant changes their philosophy on dividends and stock buybacks.

Last year Cupertino announced plans for a quarterly dividend of $2.5 billion in addition to setting aside $10 billion for stock buybacks. Furthermore, Apple will be spending $1 billion this year to improve and expand retail stores worldwide and another $9 billion on facilities and infrastructure which includes things like new office buildings, data centers and equipment used to build their products.

Apple had $137 billion in cash on hand at the end of last year, adding $16 billion in the last quarter alone. As part of the overall picture among US corporations, Apple is at the top of the list that includes Microsoft, Google, Pfizer and Cisco.

A number of investors including hedge fund manager David Einhorn have been pressuring Cupertino to return more of the cash to shareholders, a topic that is under active discussion at Apple. The aforementioned investor went so far as to file a lawsuit against Apple with regards to the issuance of preferred stock. He ultimately decided to drop the suit earlier this month, however.

Bloomberg recently polled a number of analysts on the subject and found that many believe Apple is preparing to increase the dividend amount by more than 50 percent. Such a move would cost Apple $4.14 per share or nearly $16 billion per year, well within what they have been earning as of late.

User Comments: 9

Got something to say? Post a comment
soldier1969 soldier1969 said:

As long as there are I-****** out there this will be the case. What does Apple really have upcoming this year to compete with Samsung? The Iphone 5S? The Ipad 7 or whichever generation they are on now. They come out with a new Ipad it seems faster than people can keep up with, which may be there downfall.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

If you want to stay in debt and keep adding to this mountain, so be it because I can not stop you. I am speaking with my wallet but that is not stopping everyone else.

1 person liked this | MilwaukeeMike said:

I just wish that 9 Billion they were spending on infrastructure was in the US and not in China.

1 person liked this | Skidmarksdeluxe Skidmarksdeluxe said:

I'm happy in the knowledge that not a single penny came from my wallet. I've got far better things to waste my money on.

Guest said:

It is simple, investors should sell all there stock and invest in some other companies that pay dividend. Maybe then Apple would wake up. Right now people that have money invest in Apple are just loosing money, stock went down and they dont get money back from Apple. Stock will continue to go down because Apple is not innovating anymore, they just upgrade hardware. Like someone else said, they have the same GUI interface as 5 years ago and nothing changed. What did Apple do lately to show some inovation?? Ah yes, they changed the size of the power adapter plug and gave youan extra row of icons, keep the inovation coming, you are on the winning streak.

Guest said:

Why dont Apple just buy Samsung and Google then shut them down and rule the world?

BlueDrake said:

Why dont Apple just buy Samsung and Google then shut them down and rule the world?

That would be a joke.. Apple buying Google? I'm sure that would be an impossibility and as for Samsung, they've been trying to distance themselves due to obvious issues. Also the whole "rule the world" thing, tells me you're another Apple fanboy who won't make an account. Mostly to hide your shame I imagine. :P

danhodge danhodge said:

Why don't Apple just buy Samsung and Google then shut them down and rule the world?

The US government would most likely intervene and stop it. It would cause a massive monopoly in the market; Google is essential to pushing innovation in the mobile phone market.

Also, if they spend $9 billion on infrastructure, then that is more than the UK has budgeted for next year, which is kind of insane.

avoidz avoidz said:

Big deal. Their products are growing stale.

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.