Apple will hold a conference call Monday to outline what it will do with its $97 billion in net cash on its balance sheet. Regardless of the outcome, Apple appears to be ready to shed its cash hoarding mentality that came from a near-death experience in the 1990s.
Although it’s hard to believe today given that Apple is selling its latest iPad and covering the globe with iPhones, the company was on the ropes in the mid-1990s. In fact, Microsoft’s $150 million investment in Apple in 1997 was huge for the company. Microsoft also said it would develop and ship future versions of its Office juggernaut for Apple’s platform.
That little footnote highlights why Apple has such a cash hoard. Once you’ve been broke—or come close to being that way—you tend to appreciate a cash cushion a little bit more. Then Apple CFO Fred Anderson said the Microsoft investment strengthened “Apple’s viability.” Can you imagine such a comment today? Simply put, Apple has come a long way.
Apple shedding depression era mentality on cash hoarding:
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