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Apple banks more cash than USA

August 08, 2011 By: Dr Search Principal Consultant at the Search Clinic Category: Apple, Ecommerce, internet, mobile phones, smart phones, Tablets, Technology Companies, Uncategorized

Apple inc (AAPL) now has more cash to spend than the United States of America’s government.
Apple banks more cash than USALatest figures from the US Treasury Department show that the country has an operating cash balance of $73.7 billion (£45.3 billion).

Apple’s most recent financial results put its reserves at $76.4 billion (£47.75 billion).

The US House of Representatives has just voted to raise the country’s overdraft debt ceiling, allowing it to borrow more money to cover spending commitments.

The United States is currently spending around $200bn more than it collects in revenue every month.

Apple, on the other hand, is making money hand over fist, according to its financial results. In the three months ending 25 June, net income was 125% higher than a year earlier at £4.56 billion ($7.31 billion).

With more than $75bn either sitting in the bank or in easily accessible assets, there has been enormous speculation about what the company will do with the money.

Industry watchers believe that it is building up a war chest to be used for strategic acquisitions of other businesses, and to secure technology patents with Bookstore Barnes and Noble and the online movie site Netflix possible targets.

The company may also have its eye on smaller firms that develop systems Apple might want to add to its devices, such as voice recognition.

Apple dipped into some of its reserves recently when it teamed-up with Microsoft to buy a group of technology patents from the bankrupt telecom firm Nortel.

The bidding consortium paid $4.5 billion (£2.81 billion) for more than 6,000 telecommunication patents.

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