Apple’s Cash

I recently read the following article, it gave me some interesting insights of Apple’s cash pile and strategy.

http://www.asymco.com/2018/01/18/the-apple-cash-faq/

Some things that caught my attention:

– The company considers its mission to be very narrow: add value in specific areas where they can create tremendous value uniquely and under conditions (technologies and business models) they can control.

– Creating products is very cash efficient. For example, the iPhone–the most successful product of all time–cost almost nothing to develop; certainly nothing that required Apple to dip into its cash.

– Apple buys for teams and their intellectual property. Apple does not buy “business models” or customers or cash flows which is what large companies are valued for.