Did she say "Shareholders an d people are asking Apple 'You have too much money in the bank and that worries us'"???
This question may come to you as being extremely naive, but not being able to understand finance, money, shares, market, company value etc., to me it is actually baffling that having too much money i the bank is a negative instead of being a positive thing.
Is the market never happy? If you do not have enough, and you are not performing phenomenally well, you have a problem; and if you are performing phenomenally well and have shitloads of money, you still have a problem?
Did she say "Shareholders an d people are asking Apple 'You have too much money in the bank and that worries us'"???
This question may come to you as being extremely naive, but not being able to understand finance, money, shares, market, company value etc., to me it is actually baffling that having too much money i the bank is a negative instead of being a positive thing.
Is the market never happy? If you do not have enough, and you are not performing phenomenally well, you have a problem; and if you are performing phenomenally well and have shitloads of money, you still have a problem?
At the link, it is stated that " A new report says Apple could manufacture the iPhone in the U.S. and still enjoy a gross margin of nearly 50%. "
Here is what The Economist has to say about the iPad, and surely the iPhone situation is similar:
"Researchers for the Personal Computing Industry Centre at the University of California, Irvine, took apart an iPad and worked out where all the various bits inside came from and what it had cost to make and assemble them ... The researchers estimated the total worldwide labour costs for the iPad at $33, of which China’s share was just $8. ...
If China accounts for such a small share of the overall labour costs, surely Apple could afford to make iPads in America? It turns out that low wages are not the only attraction. What Shenzhen has to offer on top is 30 years’ experience of producing electronics. It has a network of firms with sophisticated supply chains, multiple design and engineering skills, intimate knowledge of their production processes and the willingness to leap into action if asked to scale up production.
What Shenzhen provides, in other words, is a successful industrial cluster. It works for Apple because many of the electronic parts it uses are commodities." (The Economist, Apr 21, 2012)
Not that it matters much to us which country iPads and iPhones are imported from.
Mustn't forget that China doesn't have unions to get in the way every few years. I doubt there are pension plans as well; at least not that we are accustomed to. Sick / vacation time likely wrks differently too.
It would be great to see Apple move some manufacturing to NA now that they are richer then the USA, but stockholders don't work like that.
As a shareholder who has seen the value of his AAPL increase more over the past calendar year than he's likely to spend on Apple products in the next decade or two, I'm quite happy with the profit margins .
Of course, I would prefer a North American-made product. Tech is just about the only thing I can't find that was made in a democratic country.
Did she say "Shareholders an d people are asking Apple 'You have too much money in the bank and that worries us'"???
This question may come to you as being extremely naive, but not being able to understand finance, money, shares, market, company value etc., to me it is actually baffling that having too much money i the bank is a negative instead of being a positive thing.
Is the market never happy? If you do not have enough, and you are not performing phenomenally well, you have a problem; and if you are performing phenomenally well and have shitloads of money, you still have a problem?
Cheers
As a role of thumb, companies shouldn't keep shareholders wealth in cash, either invest it in in R&D projects to return more than cash rates, or give it back in dividends or share buybacks. Again this is the rule of thumb.
As a role of thumb, companies shouldn't keep shareholders wealth in cash, either invest it in in R&D projects to return more than cash rates, or give it back in dividends or share buybacks. Again this is the rule of thumb.
Apple succeeds by giving the finger to the rule of thumb. Share holders don't seem to be complaining.
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"I am disappointed and deeply concerned that there is no objective evidence to support my position. So far."
- Spock 
Apple succeeds by giving the finger to the rule of thumb. Share holders don't seem to be complaining.
Agreed. However, such is the risk that apple faces now, shareholders are no longer investors who understand apple and understand what it stands for,the more "retail" money buying apple shares, the more "negativity" coming out from large shareholders who know nothing of the business but want to have a say, with no Steve jobs to stop them.
Tim Cook will have his hands full..
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