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	<title>Michael Dowling&#039;s Whispers &#187; money management</title>
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		<title>News:  Apple&#8217;s Cash Hoard Triggers Acqusition Rumors</title>
		<link>http://blog.minderupt.com/2009/05/05/news-apples-cash-hoard-triggers-acqusition-rumors/</link>
		<comments>http://blog.minderupt.com/2009/05/05/news-apples-cash-hoard-triggers-acqusition-rumors/#comments</comments>
		<pubDate>Tue, 05 May 2009 18:00:31 +0000</pubDate>
		<dc:creator>michael</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Personal]]></category>
		<category><![CDATA[apple]]></category>
		<category><![CDATA[cash]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[money management]]></category>
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		<description><![CDATA[From MacRumors:  Apple&#8217;s Cash Hoard Triggers Acqusition Rumors
So, this scares me just a little bit.  It was not that long ago when Apple was bleeding &#8211; nay, hemmoraging &#8211; money from every pore.  It had piled up wads of money in previous years which pretty much kept it alive  long enough to buy back Steve [...]


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			<content:encoded><![CDATA[<p>From MacRumors:  <a href="http://www.macrumors.com/2009/05/05/apples-cash-hoard-triggers-acqusition-rumors-twitter-electronic-arts/" target="_blank">Apple&#8217;s Cash Hoard Triggers Acqusition Rumors</a></p>
<p>So, this scares me just a little bit.  <a href="http://www.businessweek.com/archives/1996/b3460044.arc.htm" target="_blank">It was not that long ago when Apple was bleeding &#8211; nay, hemmoraging &#8211; money from every pore</a>.  It had piled up wads of money in previous years which pretty much kept it alive  long enough to <a href="http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1996/12/21/MN60610.DTL" target="_blank">buy back Steve Jobs and rescue the company from its failed product strategy</a>.</p>
<p>I&#8217;m hoping the rumors are just that &#8211; rumors.  IMHO Apple, while making amazing products and therefore making amazing money right now, could just as easily <a href="http://online.wsj.com/article/SB115334536436311589.html" target="_blank">fall out of favor with finicky consumers</a> and find itself in an all-t00-familiar position all over again.  It will need that hoard of cash to reformulate and adapt, just like it did before.</p>
<p>I&#8217;m all for dividend distribution in general as well, but not for companies like Apple.  Or Microsoft, for that matter.  These companies are not in a business that is constant or stable &#8211; technology is still ever-adapting and ever-competitive, and realignments are common.  That takes cash.</p>
<p>Besides, WTF would Apple do with <a href="http://twitter.com/michaeldowling" target="_blank">Twitter </a>anyway?  Honestly, I&#8217;m still at a loss for what Twitter is exactly for, anyway.  Marketers tell me it&#8217;s an amazing channel, but people don&#8217;t go to Twitter so they can be marketed to, they go there to communicate.  Just like on <a href="http://www.facebook.com/" target="_blank">Facebook</a>.  Just like they did on <a href="http://www.myspace.com/" target="_blank">MySpace</a>.  MySpace fell out of favor, as will Facebook, and will Twitter.  I would say Twitter is well on its way, now that &#8220;tweeting&#8221; is a mass-market phenomenon and no longer a tool of the hipsters only.  That&#8217;s usually when these things start to become boring.</p>
<p>Electronic Arts?  That kinda makes sense.  MacOS has always had a big gap in its games category.  Most popular games are developed for the Windows platform (though recently EA has <a href="http://www.appleinsider.com/articles/07/08/17/first_wave_of_ea_mac_games_finally_en_route_to_stores.html" target="_blank">committed to developing for the Mac</a>, and of course World of Warcraft (Warcrack?) is on the Mac, thankfully).  But I think that gap can be filled without spending the savings account.</p>
<p>My $0.02 on the matter, FWIW.</p>


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