'Our current net cash balance is $163 billion, considering the increased financial and operational flexibility in obtaining overseas funds, we want to gradually approach net cash neutrality.' The company's CFO Luca Maestri ) Said in the financial report conference call.
To replace this statement with a more general statement is: Apple plans to spend this $ 163 billion, and ultimately no longer retain a lot of cash as in the past 10 years.
When asked what is meant by 'step by step', Mestre said that Apple will elaborate in the next quarterly report - the company will usually disclose the latest news of the shareholders' return plan at that time.
Many of these funds may be returned directly to investors. The company added a $50 billion shareholder return program last year for repurchase of stocks and dividends, bringing the total amount of the project to about $300 billion. They also announced a 50 billion increase the previous year. Dollar quota.
Mestre said that the company will usually return about 100% of free cash flow to investors, 'so this is the way we will take.'
But if Apple decides to double the regular annual shareholder return, they will still have $63 billion in net cash. Apple has several options to spend the money. The company announced in January this year that they will invest more than $10 billion. The dollar's expansion of the data center. The company is also preparing to build a new campus and 'create' 20,000 jobs - but did not disclose whether it would hire 20,000 full-time Apple employees.
Apple may also use part of its net cash balance to acquire other companies. Mestre disclosed on the conference call that the company is not prepared to change the acquisition strategy.
He said that Apple's acquisition goals include several categories, either accelerating the product roadmap, either complementing the product's short board, or providing users with new experiences. He also added that Apple looks at companies of all sizes and will Continue to take this approach. '
Mestre pointed out that Apple completed 19 acquisitions in 2017, but the scale is relatively small, which is in line with Apple's conventional model. The company’s biggest acquisition so far was to spend US$3 billion in 2014 to acquire audio manufacturer Beats. Suspected that Apple may intend to acquire Netflix or Disney.
However, because the market value of the two companies was 138.9 billion and 154.6 billion U.S. dollars, even if they only increased the 50 billion U.S. shareholders’ return amount, the prices of these companies exceeded Apple’s remaining net cash. What’s more, the acquisition of these famous enterprises may be possible. Also pay a premium.