I had to read this post a few times to make sure I understand what they were saying. It seems like the author is saying that Apple is guilty because they have 60 billion in the bank. I don’t understand that argument.

Business have the right to use their money however they want. It is disappointing when companies don’t choose to invest in pro-social things. I wonder if the author knew that Apple employee Kathleen Ramsay once told all its employees

“The company also recognizes we’re going to continue to invest in the downturn; this is what we did when the economy turned down in early 2000. When the economy did turn around, we were in a position that we had new products to bring to market and that was a very successful strategy for us. We are going to continue to do that again.”

I am not excusing Apple for its behavior or choices. Everyone has to stand by their own choices. I would like however to ask a few questions.

1. If Apple didn’t keep that money how should they invest it? I have read that they keep it in short term accounts.
2. If Apple spend the money on R&D wouldn’t that put other companies at a serious and almost overwhelming disadvantage?
3. If you were Apple management and you were allegedly 60 days from being closed down in the late 90s due to lack of finances, wouldn’t you want to hold some money back to protect from getting in that situation again? If you make a mistake once, wouldn’t you want to make sure you don’t make the same mistake twice?
4. If Apple gave away its products until it ran out of cash what would the future be? Who would have created the iPod, iPhone and things that are uniquely Apple?
5. If Apple didn’t have billions to buy other companies, how could they grow in new markets? Hasn’t it been, every long term company explored and started new markets to continue to grow?
6. If Apple spend the money by dispersing it to their shareholders then what would prevent larger companies from simply acquiring them? Many companies have had hostile takeovers because they don’t have the cash or can’t convert their assets to prevent it. Perhaps Apple wants to continue doing things “my own way” without a bigger suitor calling the shots.
7. Finally, if you were Apple and didn’t see anything that is strategic to the companies growth what would you do with the money? Would you continue to feel compelled to spend in that uniquely American way on things that don’t have a purpose?

Perhaps Apple has a reason for what it does. Perhaps Apple is just greedy bastards and they are swimming in the money like Scrooge McDuck. They have the free agency to choose whatever they want. So far their choices have given us more options than we had without them. I am curious to see what they have up their sleeve. Perhaps one day they will just buy the United States and then we will all be Apple employees. I hope to run the Channel 9 blog if that happens.

Liberal media is absolutely awash in complaining that “corporations” are sitting on their money when they should be hiring. One wonders if that complaint includes liberal Apple Computer Corporation? The NY Times, in an article about the price of the iPAD2, which is lower than the competition ( most unusual for Apple), is able to do so because they can afford to take a lower profit. And the reason they can afford to take a lower profit is because … Read More

via Usna1957′s Weblog