Apple Inc. (AAPL) Could Have Rescued Greece Twice

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Apple Inc. (AAPL) Could Have Rescued Greece Twice
ElisaRiva / Pixabay

In 2012, an investor attending Apple’s annual shareholder meeting asked CEO Tim Cook if the tech giant ever considered acquiring Greece using its rapidly growing cash pile. Apple had $97.6 billion in cash reserves at the time. Cook said he had looked into many things, but not Greece. Greece has now reached a bailout deal with the Eurozone leaders with tough conditions.

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Apple’s cash pile dwarfs Greek bailout package

Athens is getting $96 billion from Europe to put its house in order. That may seem like a lot of money to us, but it’s not a big deal for Apple. As of March 28, the Cupertino-based tech giant had $194 billion in cash and cash equivalents. It means the iPhone maker could have bailed out Greece twice, and still had $2 billion in its kitty.

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Apple Inc. (NASDAQ:AAPL) has pledged to return a staggering $200 billion to its shareholders in the form of stock buybacks and dividends by March 2017. Despite the company’s generous stock buybacks and dividends, its cash pile continues to grow bigger. More than 89% of its total cash or $171 billion is kept overseas to avoid the 35% repatriation tax in the United States.

If Apple Inc. (NASDAQ:AAPL) were a country and its market value was its GDP, the iPhone maker would be the 20th richest country in the world, according to latest figures from the World Bank (via Wired). The debt burden of Greece still stands at 175% of its GDP, which means it is unsustainable despite the latest deal. The country needs a total of $212 billion to reduce its debt burden to a manageable 70% of GDP, according to Bloomberg View columnist Leonid Bershidsky.

Apple keeps only a few billion dollars in hard cash

Apple Inc. (NASDAQ:AAPL) doesn’t keep all of its money in hard cash. The company invests a large chunk of its funds in corporate and government securities, and other investments. Apple has its own fund management firm Braeburn Capital to manage its cash.

Though the iPhone maker did not bail out Greece, it is doing its bit to help Greeks. As the debt crisis led to a shutdown of the country’s financial system, Greek customers were unable to send money to Apple to pay for iCloud services. The tech giant has told its Greek users that they would get an extension of 30 days to their iCloud plan.

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10 COMMENTS

  1. Exactly… 2015 and Apple haters use the same schtick while conveniently ignoring the worse crimes committed by the companies whose products they buy.

  2. stop that! you are attempting to use logic in dealing with someone who is
    illogical. Apple represents success, some folks have it some folks dont. some of those who dont
    like to vent at apple and all its wrongdoings and not look at anything positive they do.
    i find those folks entertaining and graitfying as well.

  3. Apple will fix this problem like it has all other labor issues. Now let’s see how Wal-Mart has improved it’s labor problems after 900 people BURNED TO DEATH in one of its clothing factories? Nothing? Why aren’t you upset about that?

  4. Clearly you feel these Apple employees are having a much rougher time than the population of Greece.

    A loss of perspective perhaps.

  5. Market capitalization (the total market value of an entity) and GDP (the monetary value of all the finished goods and services produced within a country’s borders in a specific time period) cannot be compared. The author should use Apple’s revenue instead to compare the company with the GDP of nations. This comparison would put Apple near Vietnam and Bangledesh, near the 50th richest nation in the world.

  6. “Though the iPhone maker did not bail out Greece, it is doing its bit to help Greeks….The tech giant has told its Greek users that they would get an extension of 30 days to their iCloud plan.”

    Big help. Not!

    Why can’t apple do something significant like adhere to labor laws?

    Apple Faces Approximately 34 Million Dollars in Lunch Period Penalties
    Class Action Attorneys in San Diego CA Hogue & Belong Law

    Preliminary numbers show that Apple may be liable for approximately $34,000,000 in unpaid lunch period penalties. California law requires every employer to provide its employees with a lunch within the first 5 hours, or else the employer is liable to the employee for an extra hour of pay.

    Apple made its California employees work through lunches or work too long before they received a lunch without providing them with the extra hour of pay required by California law.

    When asked for his reaction, class counsel, Tyler Belong stated, “Apple is sitting on an estimated $178 Billion in cash, and its CEO recently boasted about the fact that Apple has ‘always been about making the best’ products. But, I think it is absolutely shameful how Apple treats its greatest asset – its employees. Apple is depriving those employees basic health and safety rights simply to add to its net worth.”
    hoguebelonglaw com/apple-faces-approximately-34-million-dollars-in-lunch-period-penalties/

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