Monday, March 19, 2012
Apple (s AAPL) has nearly a $100 billion in cash on its books. It is also a source of constant nagging by Wall Street investors who want Apple to do something with it. A dividend, give it back to investors or something.
In order to address the cash balance issue, Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, are going to host a conference call to announce the outcome of the Company’s discussions concerning its cash balance., the company announced today. The call will be held on Monday, March 19, 2012 at 6:00 a.m. pacific standard time (9:00 a.m. eastern.)
During Steve Jobs era, Wall Street demands fell on deaf ears. In a recent conference call, Cook's position on cash balance wasn't that extreme. As my colleague, Erica Ogg pointed out, Cook and the board were in discussions about the cash position, which continues to rise. "We have more cash than we need to run the business on a daily basis," he said during the quarterly conference call with analysts.
I for one, believe the company should just sit on the cash and not worry too much about the Wall Street just yet. It is important that they use the cash to lock-up supplies of components for its products. The cash cushion gives the company to actively compete for talent as well as any future startups it might need to acquire to enhance its overall ambitions.