• Apple Now Has the Cash to Buy RIM, Nokia, Motorola, and The World At Large

    Apple fans have been joking for some time that the company is bent on global domination. Well, it now looks like Apple has the cash to actually do it - or at least come close with regard to dominating the world of mobile phones. According to a new report published Friday, Apple is on track to have $70 billion in cash reserves before the end of this fiscal quarter.

    Exactly how much can $70 billion buy you these days? If you're Apple, it can buy the likes of Nokia, Research in Motion, Motorola Mobility, HTC, and any number of other small rivals you can think of. Of course, this doesn't mean Apple will scoop up the competition, it simply means that it could.

    Providing an analysis for Asymco, Horace Dediu writes: "As market values of phone vendors continue to decline, Apple's cash will continue to grow dramatically. Indeed, a time may soon come when Apple's cash will be worth more than the entire phone industry."

    Meanwhile, the enterprise value of Apple's competitors has been shrinking. Four of them control 75% of the global cellphone market and have a total valuation of $66 billion:

    * Nokia $22.6b
    * RIM $13.8b
    * HTC $25.4b
    * Motorola Mobility $4.2b
    Although there's no concrete evidence to suggest that Apple is poised to purchase a competitor, there's a growing consensus that RIM may be on Apple's radar. On Thursday, RIM announced what some analysts are calling "relatively dismal" first fiscal quarter revenues, which - despite being up 16% over the last quarter - is nowhere near the 113% growth Apple reported in its most recent quarter on the strength of iPad, and iPhone sales.

    Source: CNN Money
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