Apple is flushed with cash, reports theÂ Wall Street Journal, and is expected to announce reserves of more than $250 billion in Tuesdayâ€™s earnings report.
Thatâ€™s enough, theÂ Wall Street Journal says, to outstrip the market values of both Wal-Mart Stores Inc. and Procter Gamble Co., and to exceed the foreign-currency reserves of the United Kingdom and CanadaÂ combined. The company has doubled its cash reserves in the last four and a half years and apparently was building up bank at a rate of $3.6 million an hour. Or about a MacBook Air per minute.
With all that money just sitting around, thereâ€™s going to be pressure for the company to spend some of it. TheÂ WSJÂ suggests that Apple could provide a special dividend payment to investors. An acquisition is a possibility, too, with a wide variety of companies out there that would fit into Appleâ€™s plans. Another possibility, however, is that Apple is waiting on the White House. The President has promised to give big corporations a tax break on bringing money back to the U.S. 90 percent of Appleâ€™s reserves are held abroad, so a break like that could compel them to bring that money back into the country.
What fans wouldÂ really like to see, though, is Apple dumping that money back into RD. Â The pace of innovation on products like the iPhone and MacBook has slowed, and a shot of Apple Magic would be appreciated after years of subtle iteration.
Appleâ€™s earnings call it set for 2 p.m. PT on Tuesday, and weâ€™ll find out then just how much cash the company has on hand.