Too Much Money: Apple's $200 Billion Problem
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- เผยแพร่เมื่อ 1 ก.ย. 2022
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Apple currently has about $200 billion dollars in the bank. That's a lot of money… so surely having that much tucked away is good right? Well many investors are getting unhappy with Apple's hoarding - so they're developing new plans to spend it…
Imagine owning a machine that prints money, but investors complain that you didn't buy a second machine that also prints money
I just here more money
More like imagine you have already covered every square inch of the planet in money printers and investors complain you aren’t building a new planet to put machines on
What would you do if you own one, you still need to buy raw materials though
This right here wins my backhanded witty comment of the day award. Haha!
@@thomasknig7577 you already have a planet of money printers, that’s the logical conclusion… or like building a second floor to the money printers, like a Jupiter brain.
This just shows how unhealthy the financial systems are in big tech. Being expected to keep growing is not a sustainable expectation. Especially for apple which has already made it big and is clearly super successful. The whole point of explosive growth is if your a company in its early stages. And not the behemoth of apple
Most financial systems are unhealthy at that level
What about increasing corporate tax for companies of a certain profitmargin? To promote reinvestment
Also with more money in the bank then most nations they can weather any storm... if they go into debt like Telsa always is then when the bad time comes we might lose Apple... As who would not get bailed out as no government needs them unlike Microsoft or GM... Also expending into every industry only works if you are dedicated to making it work... Apple isn't and may fail because of it as it's a trap to many companies fall into... So yeah hopefull Apple can talk some sense into those investers or go privite as it really does not need them.
It's the whole global system where you can pay almost nothing to someone in Africa to mine for resources , and keep all the profit for that. Add a lot of corruption in the middle and here you go.
It's not about the genius or hard work. It's about how immoral are you willing to be.
Insanity of greed
Apologies, this might not be TLDR Astrophysics but even I can admit those Pluto numbers look a touch wonky - I might have been measuring when Pluto was on their annual holiday to Mars. Anyway, the point still stands it’s a lot of money even if the exact maths doesn’t work as well as the pretty graphic makes you want to believe - Jack
A dollar bill is 6.14 inches (15.5448 cm) long. 1 AU (Earth to sun) is 150 million kilometers so it takes 9.6495291 × 10*11 bills to cover that distance. I am avoiding "billion" because a long "billion" is a short "trillion". Apple is using the short billion so they have $3.78 × 10^11 dollars or around the distance from the Sun to _Mercury_ .
:D
3:41 How in the world did you manage to mispronounce Nike?
@@WPaKFamily Nah he pronounced it correctly
@@thomsonjoy228 lol
I'm not sure where they got that Pluto figure from... according to Google, Pluto is about 5 billion kilometres away - 378 billion dollars wouldn't even get you there once
Yeah I was really supprised by that number too
i think they forget to convert km in m
@@Alex-sr9pq Even then it’s just wrong. They’re claiming you can reach 5 trillion meters in that case since it’s "over 1000 times". The math is off by at least a factor of a million, if not more.
@@FlorianWendelborn Doing the maths, it would be about 59 million km, about 8% of the distance. That puts them out by a factor of about 12,600
@@tomnaylor4818 Is that side-by-side or stacked? I was assuming they mean stacked
What they don't do... is pay a real amount of tax where they sell products.
@Allan Cameron morals and ethics, but this is a company so none of that igy
Or you know... pay their non-US employees a living wage.
They could start giving out scholarships to train the next generation of scientists and engineers they will need.
I believe this will eventually happen. I can see them starting their own university to solely train their own workforce so they’ll never have to worry about labor shortages.
@@Rivs5117 they Will likely build a training center,to attract low skilled workers which is in shortage in all devoloped countries.
They could start paying a "real" dividend. Rather than the 0.59% they paid last year, they could get a bit closer to the stock market average or 3 to 4%
They need to do that and raise their engineers salaries. Being an engineer for a FAANG company is stressful.
Apple stock actually a glorious bad investment you get interest below inflation - so you just burn money and hope for raising stock prices - who are actually falling too atm
These profit margins prove just how much you're being over charged for their products. Don't do it to yourself, you deserve better
Same goes to Android though. They just sell your data instead. Even Ads on your Lock screen sometimes.
That crab holding an apple was hypnotic 😂😂
I would be stuck if he didn't snap me out of it
This video made me laugh for some reason. I mean take Ben's cameo for example at 3:09, or those perspectives about the macs yachts pluto dollar heights at the beginning of the video.
Imagine paying apple store workers more money
Tim Cook: Lets not get crazy here
Paying people is always a supply demand problem. In terms of service jobs, Apple store employees already get paid comparatively well and Apple will only pay what’s required and not a cent more.
@@shanep.7184 thats the problem
@@shway1 Apple is making profit due to Engineers team. I think they are already paid very good enough.
But they not paying good for manufacturing and assembling third party employees. And they are neglecting their responsibilities here.
They raise their minimum wage to $22/hr for worker. Their engineers need a huge huge salary raise.
I know they use TSMC for their chip fabrication but maybe they should consider building their own fab. It would give them more control over their products which seems to be what they want.
I bet Apple already have enough sway with TSMC decision making. TSMC won't readily share their secret manufacturing process which made them the behemoth they are as a fab. But I guess this is one reason why TSMC is building one in the states.
@@kripler3001 tsmc chip sells like apple product pathetic loser company people belive in apple lies 😂
Here is a crazy idea: apple could pay taxes in Europe.
That too expensive
Or, they could stop cutting costs by abusing Chinese labour and such.
Give Europe money to buy Russian oil.
@@billyfox6368 Not to defend Apple too much, but technically it's Foxconn, Pegaton, etc., who are abusing the laborers. Apple could pay those companies more and demand they give the laborers a better wage, fewer hours, etc., but that doesn't mean they will comply with Apple's demands when Apple isn't looking.
@@jc3drums916 Apple doesn't even try, though.
Id love it if they just paid their staff better.
Pretty sure Apple employees have very good salaries when compared to the market rate
Cheap labor is an implied rule of capitalism. Maybe some people working for apple are paid well, but certainly not the Chinese that manufacture the iPhones.
@@xenico8233 I worked at Apple for 8 years as a creative FYI and left over a dispute in a 1% yearly pay rise. After delivering rough 300k in revenue. Because “You’re already at the top of your pay level” so I walked ✌️
Arent apple employees paid well relative to their counterparts in the same profession
Was about to comment this suggestion "They could pay their laborers better"
If Apple don't know what to do with it they can donate it to my bank account. Thanks in advance 😂
Would you keep all that money to yourself?
@@tomlxyz they give me few billion as well.
I would even be satisfied by few millions
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Binge watching the vids on the new channel and they're all so interesting, thanks!
I’m loving these new videos. Keep it up.
Nike is Greek for "victory", and the E at the end is pronounced. It's "Ni-kee" not "Ni-k".
Because dollar bills are the same size, irrespective of denomination, imagine side by side stacks of around $1500, stretched around the entire equator. If you wanted to pick them up, a 6-7 mins brisk walk would make you a millionaire
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5:40 The acquisition of Intel's Modem business had absolutely nothing to do with Apple's move to their own silicon chips in Mac hardware or other hardware. That was started back in 2008 when they purchased P.A. Semi which was a semiconductor company and then started to create their own chips to put into the iPhone and over the years improved them and made other similar acquisitions.
Apple hasn't done anything yet (publicly) with the Intel Modem acquisition, mainly due to patent issues with Qualcomm.
"And meta are investing big.. in to whatever this is" LOL
Great video as always guys. Please fix the Nebula Android app.
The appropriate "perspective" is to compare with the GDP of various, entire, countries
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Great video!
Looking at Apple's cash reserves, they're down 55% since 2019. I'd say they're on the right track at the moment.
Is it possible to get this channel in podcast format?
I don't understand. Why cant these mega caps go private since they have a lot of money. why deal with this growth torture from the investors?
Their earnings is in the size of my country's whole GDP
I heard that several years ago they had close to 400 Billion off-shore.
Fun fact: 378.35 bln. $ is more than the nominal GDP of Malaysia (372.7 bln. (Source - World Bank, 2021) ), a top 40 country by this metric.
I think you guys said the revenue number for earnings 94.68 billion in earnings for 2022
What is RnG? Some kind of music?
Can you do a video about the AI winning an art contest?
We are in Q3 2022 now where did you get those numbers...?
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My first 2 thoughts are dividends and semi-conductors. Didn’t the whole point of stock use to be dividends? And as for semi-conductors, I feel like investing in semi-conductor manufacturing (while absurdly expensive) is almost a sure-fire way to make money (unlike self driving cars).
I read this thing in the FT. If they give too much in dividends, it shows that they don't have a proper plan to invest there money to keep growing. Its very counter intuitive.
Dividends are paid by companies which do not see much growth. Like food, tobacco etc. Basically you have so much money and no customers. So paying dividends sends a wrong message to investors that the company doesn't have much growth potential. Thats a death nail for tech companies
@@rahulmathew4970 ah yes because investors hate money so much
@@Alpha1Epsilon2 No investors love money of tomorrow
Of money returned to investors, Apple splits it between 25% dividends and 75% share buy backs. Buy backs are more beneficial for investors. Apple's stated goal is to only have enough cash on hand for corporate purposes. It's a very efficiently run company.
I would die a happy man trying to eat that many big macs
OkI'm somewhat late to the party so this might have been mentioned already., but why can't appke use some of that cash to buy back extra stock? Thus woul 1: reduce the bank balance, 2: reduce the power iof external investors, 3 reduce the impact of future dividend payments ( as they would in effect be paying themselves/ not needing to pay dividends on their own shares)
Did you miss that Apple has bought back nearly $600 Billion in stock in the last decade. A total waste of money giving perhaps a marginal boost to the stock price. Stock buybacks used to be illegal for good reason, they usually benefit only the corporate officers. Better to use the money for something productive like buying a couple fabs.
@@jonhoops1 yes I did, thank you for taking the time to replay. You raise an interesting point, but correct e if I'm wrong,oustanding stock is allso considered as debt, so bying back stock would be reducing that debt ( unless you have to borrow to buy them back, not the case here). Isn't reducing debt a good thing, what am I missing?
Do they pay correct tax in USA? just asking...
Things apple could do that would acctually be a good idea:
- Paying their staff better
- Making their phones cheaper
I would be happy if they just stopped pulling things away from the phone, like the charger and headphones.
The first one, definitely.
The second one... Ehhhhhhhhhh.....
I've owned iPhones and androids. iPhones were my first proper smartphone.
My 4S battery tanked and the one in my 6 also tanked but couldn't even be replaced because the frame had bent, meaning a replacement could damage the motherboard.
Both of them needed their screens replaced at various points.
I couldn't believe it when I found an Android for £150 that did everything I used to do on my iPhone AND had a replaceable battery.
Sure, the camera wasn't as good and it felt cheaper in the hand, but the camera was the only practical drawback - even the screen PPI was comparable to an iPhone of the time.
(The replacement Android I got cost all of £230 and has a camera that's absolutely fine - I've even recorded semi-professional videos to promote the national organisation I work for with it.)
Neither of my Androids have suffered cracked screens and I have both stepped and dropped gym weights on the second
A HUGE part of iPhones' market is their lure as a status symbol, of feeling "exclusive" even though they sell gangbusters to lots of people who would see no tangible drawbacks on a cheaper Android.
Take away the expensive luxury brand factor and most of the market - perhaps save for their SE editions - wouldn't be interested.
@@tomgl6684 an iPhone is a status symbol for
People making basic salary. Anything more than that and it’s not
@@Annou7la What a ridiculous comment.
You don't think there are people on city trader levels of money who wouldn't be seen dead on a "cheap" Android handset?
A status symbol like the iPhone is not just about being the "expensive" option relative to your own wealth - it's also about not being seen to own a poor person's alternative.
Having a high end car stops being a question of affordability after you hit £100k a year - but how many chief execs do you see driving a one litre VW Polo?
Absurd take.
Please talk about Ecosia they are a search engine that plants trees
a big chunk of why they have so much is the amount of "scummy" tactic and loophole they use, having company in countryside china and paying their employee at very very low rates, having huge brand recognition and being able to sale for a very big profit, tax haven, tax loop hole, etc etc etc...
maybe if they would pay their due diligence they would not have so much.
And then, you could use that for increasing the well being of people in general, I mean, that amount could be enough to make sustainable tech, that dont need so much advertisement and needing to be change yearly.
They lose so much to inflation as some billionaires have as total net worth
This is one of those Good Problems to have..
They could’ve bought Tesla with this money some 4 years ago, when everyone was saying they should.
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I doubt Elon Musk would have sold.
@@thechosenone1533 He said Tesla’s stock was overpriced when it was below $100 billion market cap. That’s less than half of Apple’s free cash.
@@phoenix5054 They could have offered 500 billion dollars for it and he still wouldn't have sold.
@@thechosenone1533 I'm pretty sure he would. He sold PayPal you know? Selling companies even those he nourished is not beyond Elon Musk. Ofc he wouldn't sell now because Tesla is worth more thabn $500 billion.
I want to preface this by saying that I really love TLDR and have been watching all channels for the better part of six months now. But I feel like a part of the video putting in perspective apple’s wealth might have been unnecessary/repetitive at times. Not sure what others think, but when your videos are more straight to the point and saturated with data, I find it more interesting and more engaging. It makes me reflect on the content at hand. On another note, I am enjoying the direction this channel is taking and the topics overall have been interesting (especially the exclusive ones on Nebula).
TLDR needs to recheck their calculations to Pluto because it’s further than they think
Maybe develop iFold phone. Or investing in some cutting edge technology - 3D printing, Robotics, iCar, Social network, Neural network, Quantum tech.
What is RND?
Resource and Development, the part of the company that invents new products
With their unrestrained buybacks, their cash balance is $28b
Apple should buy back way more shares, making it less reliant on the market, securing the company if or when it's profiles start to go down.
If you're still looking for good topics to cover on this channel, a short biography of Bill Ackman and/or other important businesspeople would be interesting!
Is this video 24 FPS?
Could buy a few Boris kettles with that 🥴🥴🥴
*Didn’t even mention paying their taxes once, impressive…*
You sound poor
@@jeong-ilkajokaya3849 *I pay my fucking taxes.*
@@rashad123us I am unemployed, but I still got more money that you. brokey
@@jeong-ilkajokaya3849 🥱
Apple cars that self drive only to those places apple approved of. Great plan.
And yet the iPhone still has a lighting port
Wow, what a big error from TLDR.
Anyone with a bit of thinking should know that Pluto is pretty far away.
Just look at a real scale picture of the solar system.
But 1172 times!!!
Honestly, 200bn times 7% is half a billion dollar just eaten away by inflation every year.
They should just spend it on some fund which invests in stocks
Any takers on "Apple Car or iCar EV" in the near future
Obviously, transferring sone of that profit to the people who actually make the company work - i.e. employees - is a ludicrous idea. Why would you ever?
Good video! I found it informative and interesting. However, I would do a quick review next time to avoid the Pluto incident repeating.
At this point there isn't much room to rapidly expand, of course stealing a few users of android but most money should be spent on maintaining market share.
Why can’t they just pay dividends
Can't they just pay dividends?
It's not Q3, but Q2
As someone else has pointed out, that factoid about dollar notes reaching Pluto is grossly incorrect. Pluto is 5.33 billion kms from earth. A dollar note is only 15 .6 cm or just 0.156 m or 0.000156. doing the math it falls far far short of reaching Pluto even once.
Maybe Sunak is right after all about getting Brits doing more maths .... Just kidding.
A dollar bill is 6.14 inches (15.5448 cm) long. 1 AU (Earth to sun) is 150 million kilometers so it takes 9.6495291 × 10*11 bills to cover _that_ distance. I am avoiding "billion" because a long "billion" is a short "trillion". Apple is using the short billion so $3.78 × 10^11 dollars bills would only cover the distance from the Sun to _Mercury_ .
Dang nabin British people and their extra long numbers, as if anything above a trillion wouldn't automatically be using scientific notation. The American naming system still goes up to 10^63.
All that R&D and Siri still sucks
Companies like these are worse than Casinos. Atleast Casino's you have a chance to win big. This you're buying overpriced crap.
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Useing CHild Labor of China, but charging the world almost $1000.00 a phone that in a year or two they will text email you constantly . while parts are made cheaper .
All that money and they can’t make a damn gaming console Smfh
Or give it back to the UK to solve the energy crisis. £100B would do that.
I also want to suffer like apple 😭😭
Wish I had a 200 billion dollar problem.
There’s no way he just said “Nike” like that
You are mixing terms in this video a lot. Apple did 378B in revenue which should be looked as how much they did in sales. Saying that Revenue is the same as Earnings is misleading, it would be more accurate to say that Earnings is the same as a company's Income (still off some but close enough).
still they charge so much money for products
Wow. They could almost afford to pay the people working in the Apple sweatshops a little better. Almost.
How about paying taxes so counties they sell and operate in can provide the services, like healthcare and education, that people need.
What about made by accessories and third party accessories who have to pay apple licensing fees,that US should increase tax paid by companies and billionaires
A lot of people in the comment section are calling them greedy but they obviously don’t understand how a business works. Apple #1 priority is to return a great investment to their shareholders. Without share holders a company is nothing. I believe Apple needs to pay a higher dividend and raise all their employee’s salaries by at least 20%. They also need to get heavily involved with the sports world. I’d love to see them buy the rights to the NFL or NBA and stream it on Apple TV+. Oh and Apple just like all big tech donates hundreds of millions to charity and other great causes a year.
They already closed their car business man. Healthcare prob better bet 😂
I mean, maybe they could buy out all those investors and raise the salaries of the workers, right down to the children mining the rare earth metals
Reach to Pluto & back 1172 times!? Nah, not even once. Not even 1 AU..
US federal government can spend that in a month or less.
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A 34% profit margin. Not too bad.
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Tell Elon I referred you to him for a business investment that will change your financial life♥
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I'd like to have apple's too much money problem
pluto is a bloody planet, i will die on this hill
They just have to raise the wages of the groundfloor employers to get rid of the excess money
The investors complain they don't make more profit with that money, just spending more on wages does the opposite
@@tomlxyz And, it's not like they worked for that money?
*Earnings Per Share (not stock)
your math on the dollar bills and pluto is way off
What to do with so much money? How about paying your fair share of taxes!!
200b sitting around but somehow they still need me to pay $100 per year just to keep my free, open-source, no ads app on the store.
They got that 200b somehow.
Inflation could wipe out this stash within just a few years. What a waste.
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Tell Elon I referred you to him for a business investment that will change your financial life♦
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Mo' money, mo' not paying taxes for reasons?!
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(At a low estimate), Apple could mitigate climate change on their own. Reckon they would if we agreed to rename the planet iEarth?
What if they just lowered their ridiculous prices.
or paid people more
Tech and energy.
... who says "NAIK" for "Nike"???
"Nike" rhyming with "like"???
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