Even with a failure to meet latest targets – presumably to iPhone 5 hype and 4S meh meaning phone sales were down 3 million from projections – Apple Computer still turned a ludicrous $28bn last quarter. That’s two thirds up on previous turnover, and a whopping 85% up on profit – thanks to very healthy margins on their premium i-Gewgaws.
Tim Cook’s biggest problem now is what to do with an $81bn and growing surplus that Apple are just sitting on. Frankly, they’re raking it in far faster than they can do anything with it. They were never big on dividends to shareholders, and even their much vaunted R&D operation is only $450m a year – hardly a pinprick on their cash mountain. And the problem shows no sign of going away – as they charge into the Chinese gadget market, they’re predicting a bailout-tastic £37bn for the next quarter.
So given they have more money than they know what to do with, why are they still so keen on screwing every penny out of their suppliers, and by extension their outsourced workforce? (more…)