AAPL Stock: 5 Things Apple Inc. Can Buy with Its $216 Billion Cash

2. Acquire This Car Company

The “Apple iCar,” touted to be Apple’s next-generation, all-electric, and (likely) fully autonomous car, has gathered a lot of media buzz. However, the project, codenamed “Project Titan,” is moving slower than was originally expected. (Source: “Apple’s ‘Project Titan’ at crossroads, team in hiring freeze, source says,” Apple Insider, January 25, 2016.)

Now, Apple has shown interest in partnering with BMW to speed things up. But what if, instead of a partnership, Apple just acquired the German carmaker? With all that cash, it’s easier than you think.

In fact, Apple would save billions on taxes should it acquire a foreign company instead of one based here at home. This is because almost all of Apple’s cash reserves are lying offshore. If they’re repatriated, rather than being spent abroad as would be the case in this example, it could cause a significant dent in the total figure after the company pays taxes on its cash hoard.

If not the company, Apple could definitely consider buying BMW’s, or any other big carmaker’s, electric vehicle (EV) technology if the tech giant really wants to get its car on the roads by the expected launch year of 2019.


3. Venture into Consumer Electronics

The growing phenomenon of the “Internet of Things” (IoT) is changing the industry dynamics for all tech companies. But for Apple, the transitions will be much easier. All of Apple’s devices run on its native operating system (OS), “iOS,” which will make it simpler for Apple to create its IoT ecosystem.

The IoT trend is essentially the creation of an ecosystem of machines, through which they can connect and communicate with each other. In other words, in an IoT environment, you’re able to connect your phone with your car, your car with your home security system, your home security system with your tablet, your tablet with your TV, and so on. Today, almost every company is making a push into this ecosystem to dominate our lives.

But to make it possible, Apple will need more products, as do Samsung and LG—two very profitable consumer electronics companies with extensive portfolios of very ubiquitous products.

Remember: Apple primarily took a beating on the market for its heavy reliance on one of its products—the iPhone. What it direly needs now is diversification beyond its core business into areas that can offer similar high margins, just as its smartphone segment does. Consumer electronics and the further development of an IoT ecosystem is one such area.