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URL:  http://boards.fool.com/apple-does-not-have-to-keep-its-overseas-money-30952715.aspx

Subject:  Re: say no to financial engineering distractions Date:  11/1/2013  1:02 PM
Author:  NailThatJello Number:  197722 of 203929

Apple does not have to keep it's overseas money in short term cash-like instruments being slowly eaten away by inflation. It could do what most of us here are doing, invest the money. Use money to make more money. The fact that they are keeping it very short term means either that they are inept in managing it, or that they want it to be available almost instantly if a need for cash appears. That might be that there are long term plans to do more vertical integration. Or some large acquisition though I can't imagine what. Neither of these sound too attractive to me. So I too am a bit puzzled by lack of a good Apple explanation.

Since most of Apples revs now are outside the US, it makes some sense to keep the gains there and reinvest it there, as in new stores, new manufacturing facilities, marketing and support, etc.

The specific investment will depend on the country. Some will be advantageous for manufacturing, others for R&D, in others the priority may be on stores, others for online and TV marketing, etc.

We shouldn't just think about Apple from a US mindset any more. The game is global, and the decisions need to be national.
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