Apple Has Too Much Cash

Apple (AAPL) has too much cash, says Fortune. Just how much, is too much? Well, $15 Billion to be exact. So what should Apple buy?

Oh, I like the Netflix (NFLX) idea, but perhaps it’s time for some radical thinking.

Why not buy Dell (DELL), and take the idea of vertical integration to the extreme? Think about all the enterprise customer relationships, the PC market share, and the channels. Think about Michael Dell working for Steve Jobs - the ultimate combination of creativity and operational excellence.

Comments

[awcabot:]

Shallow analysis, worthy of Yahoo! Finance boards.
Dell, even though it may be on the ropes is still worth $52B, not quite the money that Apple has at hand. Apple would buy a basket case of a company with a poor brand and no certain entry into the corporate market. Should suddenly large organizations switch to Mac OSX just because one of their suppliers sells it?
Netflix is small enough for Apple to buy, but would Apple want to get into that distribution model? Sort of beats the point of having iTunes, doesn't it?

2007 Dec 17 09:32 AM

[Julian Ivan...:]

OMG.. words fail me. Why not Buy Krispy Kreme? Why not buy Gateway? Why not buy Burger King? Why not buy IBM?

Good grief... if AAPL has too much cash, its also safe to say that Sramana Mitra has too much time on her hands.

2007 Dec 17 09:39 AM

[Gavin.:]

Excellent idea. Apple should be HP, too. And Gateway. As everyone knows, the one important piece missing from Apple's product line up is Microsoft Windows.

2007 Dec 17 09:50 AM

[VT Professor:]

Apple tried that approach and it didn't work. What's really helped Apple has been their selective distribution strategy....Target, Best Buy, Circuit City, & etc....Opens the product line to the masses for real market share and growth. If I were Apple, I wouldn't change a thing.

2007 Dec 17 10:17 AM

[Jon T:]

This is a classic of the internet echo chamber at work.

Where is the value in this inane, useless, repetitive, copy-cat article?

2007 Dec 17 11:02 AM

[frankz00:]

Both bad ideas. TiVo would be better.

2007 Dec 17 11:27 AM

[marcos:]

You don't know didlysquat. Apple is saving its big bucks so that it can by my company at the right time.

2007 Dec 17 01:51 PM

[marcos:]

correction: buy...not by, buy. Gosh I hope they don't read it wrong. I'm counting on the money.

2007 Dec 17 01:52 PM

[brewer:]

Well, I like the idea of buying Dell, just so Apple could shut it down and return the money to it's shareholders. There, Mike's dream came true... not exactly what he had in mind? Maybe, but it's poetic justice at it's finest. :-)

This would leave the Windows fan boys with one less hardware choice. As if there is any difference between any pc and the next, they all are one single and lousy choice in reality.

2007 Dec 17 02:11 PM

[Stefan Wyler:]

Sure, Apple needs do buy Dell...

2007 Dec 17 02:28 PM

[holycow:]

You mean Apple does Dell, like Debbie does ...

2007 Dec 17 03:31 PM

[Tom B:]

I think they should keep the cash, for now.

Or buy some 700 Mhz. spectrum (though maybe they could sweat talk T or GOOG into doing that FOR them)

Adobe? They could simply "obsolete" all Adobe's products with shiny new iApps.

Some have suggested AMD; this is madness-- that company is doomed.

2007 Dec 17 05:01 PM

[peter02l:]

This must be a joke, otherwise it would be so embarrassing to suggest such nonsense.
Apple is better off getting 5% interest from a savings account. What kind of trategy consultant are you?

2007 Dec 17 05:13 PM

[Denise:]

Dell operational excellence? You must be joking!

2007 Dec 18 06:24 PM

[In the money:]

I hate it when a company has too much cash.

2007 Dec 22 07:42 PM

[borisb:]

The Netflix is a good idea!
Apple would and should do whatever
to protect the iPod/media device franchise.
But Netflix has rebuffed buyout offers before,
price might now be an issue. I wonder if 2x
2008 sales would work for both sides?

2007 Dec 30 12:45 PM