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What Will Apple do With All its Cash?

Strong sales from the iPhone and iPad have helped Apple build a giant reserve

Apple has found itself in what is an enviable position these days: It's got a glut of cash. However, this fortune can also be a burden as executives work to decide what to do with the money.

As Juliette Garside writes for The Observer, Apple had a profit of $13.06 billion for the

Apple has found itself in what is an enviable position these days: It's got a glut of cash. However, this fortune can also be a burden as executives work to decide what to do with the money.

As Juliette Garside writes for The Observer, Apple had a profit of $13.06 billion for the first quarter of 2012, with a $98 billion cash cushion that could hit $150 billion by year's end. Some say the company could decide to pay out dividends, make an acquisition or invest in web-connected television.

"I would characterize our discussions today as active, about what makes the most sense to do with the cash balance," chief financial officer Peter Oppenheimer recently said during a conference call, as quoted by the newspaper. "But we don't have anything to announce specifically today."

Yet other analysts say Apple should sit on its mountain of money and avoid dividends. Writing for Forbes, Chunka Mui says that the company will need to keep its cash to fund the upcoming "expensive, bruising battle" over the personal computing market. Right now, it is positioned to take over the video, publishing, gaming, advertising and payments industries, to name a few, just as it did telecommunications and music, he says. The extra money will help Apple "out-innovate" its competitors.