Things to Buy with AAPL Net Profits
One of the most attractive things about Apple Inc. (NASDAQ:AAPL) is its extraordinary ability to turn a profit. It doesn’t take a genius to know that AAPL stock has earned enormous returns for investors, but unlike many other Wall Street darlings, the gains of Apple stock are built on real profits.
The amount of cash Apple pulls in every year is borderline ridiculous. Even with “Macbook” sales slowing and the oversaturation of the smartphone market, Apple is laughing all the way to the bank. The company made $53.4 billion in profits during the 2015 fiscal year.
Critics love to argue that technology stocks don’t earn a penny. They warn investors to be wary about tech companies that only sell grand visions of the future. Well, try explaining that to anyone who bought AAPL stock a few years ago.
7 Things Tim Could Buy Instead of AAPL Stock
The history of profits from Apple stock is an investment story that everyone hopes to imitate. By focusing Apple on the “iPod” and “iPhone,” Steve Jobs built a revenue-generating machine. The focus on design paid off for AAPL stock and Apple cornered the market on MP3 players and smartphones.
They’ve seen a technology stock deliver hundreds of billions in net profit. Over the years, Apple has even built a cash pile to shelter the stock on a rainy day. That cash pile now stands at a mind-boggling $205 billion, meaning that AAPL stock is the perfect answer to every argument made by the technology bears.
Last week, I wrote an article about the ways in which Apple could deploy its cash reserves. The list was less a practical exercise than an illustration of the sheer strength of Apple’s balance sheet.
This time, I’d like to do the same thing for Apple’s income statement. Here are a few (mostly bizarre) things that Apple could do with the income from AAPL stock.
1st Thing AAPL Can Buy with Its Profits: Fancy Cars & Watches
Apple could dish out a fashionable treat to every working American if it wanted to. It could afford to buy a Tesla “Model S” for everyone who is over the age of 16 and has a job. Purchasing the Tesla Model S, which is priced around $100,000 each, would leave room to also buy each American worker a Rolex watch.
Despite splurging on luxury cars and designer watches for America’s labor force, Apple would still have about $337,000 in change.