With $25 billion in cash and short-term securities stored away on its balance sheet, Apple (AAPL) is in a uniquely comfortable position from which to weather the econaclypse. And perhaps a uniquely opportunistic one, as well. According to CEO Steve Jobs, anyway. To wit: Jobs’s comments Tuesday about Apple’s cash reserves what it might do with them.
We have almost $25 billion safely in the bank and zero debt. This provides us tremendous stability and the ability to invest our way through this downturn. This is what we did during the last downturn–we increased R&D investments and created some of our best new products and businesses, like the Apple retail stores, for one. This downturn may also present some extraordinary opportunities for companies that have the cash to take advantage of them, like Apple does.”
What was that again?
“This downturn may also present some extraordinary opportunities for companies that have the cash to take advantage of them, like Apple does.”
Sanford Bernstein analyst Toni Sacconaghi noted that remark as well and followed up on it during the Q&A. “Steve, you mentioned a couple of times that you thought there were extraordinary opportunities for companies with cash,” he said. “I think you could hire almost every engineer in Silicon Valley on a lifetime employment contract and not really dent that significant cash horde that you have. When you made that statement, are you suggesting that there are significant opportunities for Apple outside of Apple, specifically in terms of acquiring companies?”
Jobs’s reply: “I just meant exactly what I said, which is I think there’s going to be some significant opportunities.”
Could this mean that Apple is considering an acquisition–a major acquisition? It’s hard to say, but the fact that Jobs dropped such a hint at all is certainly interesting. Perhaps it’s time for that long-rumored merger with Adobe (ADBE).
Incidentally, Adobe’s market cap is $14.65 billion. …
