Apple will soon have enough cash to buy almost all their competitors

Apple will soon have enough cash to buy almost all their competitors

When Apple next announces their financial results, they should have close to $70 billion in the bank, which according to Asymco will be enough to buy all their manufacturing competitors with the exception of Samsung. That includes HTC, Nokia, RIM, LG, Motorola, and Sony Ericsson. (Google and Microsoft aren't manufacturers, they're platform vendors.)

The more remarkable thing is that as market values of phone vendors continue to decline, Apple’s cash will continue to grow dramatically. Indeed, a time may soon come when Apple’s cash will be worth more than the entire phone industry.

I'll say it again -- North Carolina isn't a data center, it's a money bin.

[Asymco]

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, ZEN and TECH, MacBreak Weekly. Cook, grappler, photon wrangler. Follow him on Twitter, App.net, Google+.

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There are 59 comments. Add yours.

James says:

Awfully reminds me of a bubble...

gecko85 says:

In no way, shape, or form does it resemble a bubble. Apple is dealing in cold hard cash, not over inflated valuation with no profits to speak of or junk loans given to those who can't afford them.

Guest says:

This isn't a bunch of deadbeats who can't pay a mortgage. Apple has cash and lots of it.

Jason Martin says:

Do you know what a bubble is? This is nothing like it.

sting7k says:

It's not a bubble when it's liquid cash and not credit.

francolasalsa#IM says:

People who say there is not room for growth are dead wrong ! There's still the TV market , once they get into that watch for some stunning growth, remember most of apples growth the last year has come from the iPad , a product that did not exist 2 years ago

Dave says:

lets not forget apple is far from a phone and tablet maker, they also have the ipod and macs in their lineup, their onlyreal` rivals in that total sense are samsung and HP/Palm (who are notably left off the chart for this reason i guess).
dont get me wrong, thats no bad thing, just simply a point that many forget when comparing palm to other mobile vendors

Banker says:

Interesting comment... Apple doesn't "need" to grow as much as their competitors as their profit margins is far ahead of them. Apple BIGGEST strength is that their customers are willing and able to pay a premium for some of their key products/services.

Jason Martin says:

True, but if a company isn't growing, they're shrinking (or worse, dying). I'm sure Apple has no plans to do either at any point.

Openbabel says:

Lets understand..apple is accumulation of cash is not been turned into business growth as the market is flat.....cash in the business,could mean it is classed as capital emplyed in the business where earnings are flat and returns on capital employed is decling management will be blamed for failure by the market..these are conditions for break up or take over no wonder their stock price is decling like ms..somone could take this company over very soon?

420inhtown says:

You notice that HP's webos is no where on the scale.....haha not all their competitors.

Johnkonner says:

Apple's basically reaching that high-level spot they share with others such as Microsoft and Sony. But what they'll find is everything will be harder.
There will be new competitors. But they'll also follow this cycle.
All corporations start small and consumer-centric but once they reach a high growth many of the traditional values they held shed.
An example would be Google, and perhaps HTC is starting to.

iDavey says:

Where is Samsung's Market Cap declining?
They are above $100 billion. And if anyone in this world believes that's gonna stop growing, they obviously haven't been paying attention to anything going on.
Not to mention LG Corp and Samsung Group assets greatly exceed Apple's market cap. So the parent company could do just as much damage to Apple's whole company that Apple can do to their subsidiary.

Tazh89 says:

some people forget that samsung and lg do business in other categories too and not just mobile. mobile is a tiny part of there business compared to everything else they do...example samsung make chips, screens.tvs,laptop,bluray players,surround sound system.mp3,pmp's,homes in korea,factories,oil rigs ets etc. samsung are WAAAAAY bigger than apple. just apple are gonna grow does not mean others also cannot grow.

iDavey says:

Right. I was amazed to read they also do life insurance, lmao. Crazy.
But their assets sit at $200+ billion in respect to Samsung group and Samsung Electronics market cap is at 100+ billion They're doing mighty well.

CJ says:

Did you forget that Apple does business in other categories too and not just mobile?

sting7k says:

Apple's market cap is $300+ billion right now. Larger than everyone; Microsoft = ~$200 billion and Samsung ~$100 billion.
http://tech.fortune.cnn.com/2011/01/03/apples-market-cap-tops-300-billion/

dsdxp says:

Good news. The bad news is that soon the government will break them up.

Chatnoir80 says:

Fat chance. Ma Bell is going all liquid Terminator and the gov't doesn't seem to care.

Guest says:

whats to say facebook aint gonna grow so big that they can buyout apple lol never gonna happen i know but they making billion from having a website, thats just crazy...bet tipb wish they were making that much

Jsngrvn says:

would a better graph have shown comparison in OS? as IOS versus Android versus RIM versus WebOS?
It just seems a bit slanted.....

Jason Martin says:

Those graphs exist, but I don't see the relevance to this conversation. That's a completely different matter entirely.

Jsngrvn says:

I guess I just fail to see the value in the post. I mean would could compare the liquid assets of any company to any other. Is apple really anything like Motorola other than they both manufacture a phone?
Just seems little effort was done in making this article valuable.
just mho

Hoffa says:

They should have bought tmobile

Azzi says:

Why is this good news? 70 Billion worth of stockholder equity making nothing. I'm thrilled.

sting7k says:

Seriously, pay me a dividend so I can invest some more.

Adam says:

That is definitely not good. We need more competition to get better products, not less. Buy fewer iDevices, people ;)

sting7k says:

Looks like this will be the quarter they pass Microsoft in cash on hand then.

Dstris says:

I love the comments ... "amazing" " incredible" .... Blah! You're comparing smartphone companies, right!? Then you separate them into that product only. It's fanboyism to compare a company that does more than just make iPhones and iPads to companies that only make smartphones. Add in the rest of Sony, the rest of Motroloa, etc to get a true comparison. This is simply misleading.

Crunch says:

Nope. Asymco is right. If present trends continue, and there is zero reason to believe that they won't, it's solely a matter of when, not if. What's even more remarkable is that Apple's growth is exponential and continually explosive with virtually every quarter being bigger (there was one that wasn't; holiday qtr I believe) than the last and every single quarter is higher year-over-year, in the absolute sense!
At a little over a year, I am still a relatively recent Apple convert but I couldn't be more ecstatic about Apple as both its customer and business partner. The way Apple systematically makes decisions and executes them with seemingly crystal clear precision and foresight is a beautiful thing to behold. It feels as though they know what they want in their products in 2015. lol...
And there's never any BS. I've dealt with almost their entire product line at one point or another, except for the enterprise, which they're getting rid of anyway (read: Xserve; Pro items like 30" ACD, etc.) They don't pay late, presentation of products is always pristine; I'm still new but here to stay...:D

Tomáš Raděj says:

Hey, dude, you mean it? Antennagate, Locationgate, MobileMe (at least they issued refunds), iPhone3G + iOS4, hard drive vendor lock-in, faulty MacBook Airs... You really call that crystal clear precision? I beg to differ.

Guest says:

Antennagate and Locationgate were bubble problems blown out of any imaginable proportion by media.
Do you know anyone having problem with iPhone4 connection where they dont with other models at the same place?

GerOhm says:

Who's talking about growth?? It's CASH, savings in the bank, nothing to do with the companys growth potential.

GerOhm says:

That's the kicker! lol.. Apple is practically an infant based on market share yet their profit margins are the highest in the business. Meaning, this is just the beginning. That has been their goal and key to success, grow BUT in a smart profitable way. No need to undercut or give away their products if they are the best.

Iiram45 says:

This graph is miss leading...70 bil. thats everything apple sells not just phones and tabs.
Renee you are dumb.....you can suck a dick or you can suck a ball sack

allmotor91 says:

Sounds like it keeps you up at night, Wile the sheep are sleeping.

Adam Koncz says:

Actually Samsung in revenue and equity is larger than Apple MS together. In profit Samsung is comparable to Apple. They do not have that much cash laying around just because they invested $38 billion into research in 2011. Lets not just forget that half of IPhone and IPad electronics is made by Samsung and bought by Apple.

SyfD says:

Oh, by the way, Apple's cash is calculated different from Google's. In total, Google is having more available instantly, but that shall just be a sidenote. And another thing. These cash piles just show, how Apple get's every damn penny you own :D Enjoy being their cash-cow!

C.J. says:

Did even go to school Rene. To me you seem uneducated. Your articles are really childish. Or just make sure you fully understand articles you read elsewhere before posting your own here.

joshhsoj1902 says:

Impressive for a company that doesn't pay out dividends.

Christian Lange says:

You forgot at least one iPhone-Competitor: Palm / HP

Magni Ludvigsen says:

"Google and Microsoft aren’t manufacturers, they’re platform vendors".
Well so is Apple. It's been many years since Apple actually made Hardware. MacBooks and iMac's are just made from Intel and AMD components.
iPhone, iPad, iPod's are actually made by Samsung, well, that's not entirely fair. Only 90% of their components are made by the little Korean company. The rest is made by Sony.
Further more. It should be mentioned that the sales of the Apple products are going very well indeed. But the people who by the latest products are the same people who bought the previous edition of the product. So the new customer base is as far as Apple is concerned, very small.
And finally, to compare Apple's overall value to the value of the Smartphone segment from other vendors is just an misleading and completely unreliable comparison.
I do a fair amount of study into the mobile market. HTC is the fastest growing company in the world (smartphones), which means that they gain more value then Apple for every quarter. Nokia and Microsoft have an billion dollar alliance, LG is the 6th biggest IT vendor company in the world, Sony Ericsson are split up (Sony makes the components and Ericsson are producing the phones) and Sony is the 3th largest semi conductor vendor on the planet.
All of those are way out of Apple's league. Not to mention Samsung. But RIM (BlackBerry) are going down. I could see Apple by them so that they could finally get into the business segment of the smartphone market. Motorola have had great success with their Android models lately. But I can still see Apple get their hands on them. But it is an old and proud American company. Not a realistic target. But could be very interesting to follow though.
I am a little uneasy about Android dominant sales. 19% of the smartphone market now belong to Android, and iOS has close to that with 16%. Nokia has almost 50% even though I do not see their products as real smartphones. But since the regular phone segment is over 90% of the mobile market. The figures are counted together.
Simply put. That means that unless Nokia and Microsoft comes up with a good mobile platform that can compete with Android (that's not happening). Then we need Apple and iOS to create balance, so that Android is not running away. The prices are already going up. Some high end droid phones are already more expensive then iPhone 4. And yet, they are cheaper to made.
Now if you have actually read all of this. You should made your own conclusions. It is not my place to tell iPhone users that Android is the best. And it is not for and iPhone user to tell everyone else they Apple is just better.
Keep it civil people.

Dale Cobb says:

Actually most android phones are MORE expensive to make than iphones, since no single android device is produced on the same mass scale as iphones....

Michael J. Barnes says:

With HP releasing the Touchpad, Pre3, and having the Veer & Pre2 out, it seems they are a competitor. Apple doesn't have the funds to buy HP.

gecko85 says:

Again, not anything near bubble-like. Their stock, although the price seems high, it's actually not. They have a P/E ratio of about 15, which is very good. A bubble would indicate out of control P/E ratios, which isn't the case here. Their stock is very much in line with earnings, margins, etc. So, no, their stock isn't artificially inflated based on future earnings potential, it's right in line with their current actual earnings.

Grammar Police says:

Please correct grammatical error: "Apple will soon have enough cash to buy almost all their competitors" Since APPLE is singular, singular possessive adjectives must be used.
The headline should read: Apple will soon have enough cash to buy almost all ITS competitors

Tjedi says:

Bravo sir, I salute you for calling out the bullshit that this shitty little chart represents. Statistics of course are always in favor of the person who makes them up. Samsung is worth close to 300 billion, that's all there is to it. The post title is false. The chart is false.

CJ says:

Samsung worth 300 billion? Source? You're wrong, by the way.
It's around 100 billion. Try posting some facts. Unless they prove you wrong, of course.

Adam says:

Apple's cash is only a fraction of the (misleading) chart above. Look at the blue columns in this link:http://www.asymco.com/2011/04/26/2895/
Even though it's "liquid assets", they can't make money off their own stock, so about 2/3rd of the chart above cannot be considered as cash.

Jairo says:

I'm ok with Apple becoming the Most Powerful Company In The World.
As long as MR. Evil doesn't replace Steve Jobs.

Laurence Vincenzo says:

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