Sure, they buy back a small percentage of the float, and pay a reasonable dividend. I got that.
Yet still, quarter after quarter, they continue to add to this absolutely ridiculous cash hoard. Why?
Do they not have any product development ideas that warrant significant investment?
Do they have no component suppliers that warrant buying for synergistic purposes?
I'm not knocking any of there products. I'm simply pointing out why many of us are not comfortable investing in this company. If they won't invest in themselves, why should I invest in them?
My fear is that AAPL is in the process of being completely commoditized. My bigger fear is that they are completely okay with this.
Steve Jobs would be horrified by this current management team. I know they all worked under him while he ran the ship. I also know that given there recent performance, he would have fired every single one of them!
Apple's capital allocation has been near flawless. No poor acquisitions, no silly one-time dividends and no mass liquidation, leaving them vulnerable. Apple will not spend money merely for the sake of spending it.
Not being privy to Apple's long term plans or product roadmap makes it nearly impossible to suggest how or when they should spend it. I only know they haven't spent any of it erroneously. Google bought Motorola and NEST, one of which has proven to be about an 8 billion dollar loss (Motorola) and the other that may ultimately prove to be similar, just as many billions.
I'll take Apple's Authentec, Siri, and recent acquisitions all day long. They synergistically mesh into Apple's ecosystem and provide billions in return on their investment. Apple treats every dollar like it's their last, and I hope that never changes. They should continue to raise the dividend, modestly extend the buyback and stockpile cash until they deem it worth spending. This company has a "problem" all other companies could only dream about.
Did you know that Apple spent more on acquisitions than Google did last year?
Apple makes meaningful acquisitions, such as Authentech, that fly under the radar and end up helping the products in the long run. Google makes loud dramatic acquisitions, such as Motorola, which end up doing nothing for them but losing money.
Only people that are paying attention know this, and only a fraction of those understand enough to appreciate the way Apple moves. The rest of you are just headline readers, so you neither know it or understand it.
Admit it. You thought Google spent more on acquisitions last year than Apple. Didn't you?
Otherwise your post makes no sense.
I think Google's acquisition strategy makes now sense. I have never owned GOOG, and can never imagine doing so.
I do not want AAPL to acquire new technology, I want them to start developing it again!
Why have they not made any effort a content production? NFLX is eating their lunch on content. For that matter, so is AMZN.
Why can't they produce a viable alternative to Google maps?
Why haven't they been able to produce a single piece of wearable tech?
WE NEED SOMETHING NEW!!!
You are #$%$ about a company that has accumulated $150 billion in cash, basically saying they don't know what they are doing. Sir, making $1 billion per week in cash flow proves they know what they are doing. Can you name one company in the universe that make 50% of what AAPL makes?
You say Jobs would never approve of this management group. Do you not know that this group was handpicked by Jobs? You say you know he would fire every single one of them. You know nothing about what Jobs would do.
That was a really nice rant, but you completely avoided my question.
AAPL executes it's current plan better than any other tech company out there. It's margins are superior, and it's cash flow as good as any company I have ever followed.
None of than has anything to do with what has become an absolutely embarrassing policy on the allocation of it's capital. This is why, and the only reason why, AAPL trades at such a low multiple.
I bought AAPL several years ago @ $82.43, and sold it @ $646.36. This company has made me a lot of money.
However, what I refuse to do is to give AAPL a pass for absolutely incompetent management of capital. If you made an effort to answer my question, you might have pointed out that the overwhelming majority of their cash hoard is sitting off shore, and cannot be accessed without severe tax consequences.
But instead you went on a silly rant.