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James' Face
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The second, however, is that they have gobs of cash on hand. A lot of market watchers say Apple is foolhardy to keep so much cash on hand. On the contrary! Apple understands psychology, and not just consumer psychology. When they go to a vendor or hardware partner and ask for exclusive arrangements, priority fulfillment, or better prices, do you know what bargaining chip they have that few other companies have? The corporate equivalent of a suitcase full of cash. When a vendor needs to retool for a new manufacturing process Apple has developed or needs to increase their output capacity, Apple shows up with a wad of cash in hand. They don’t have to liquidate any assets or get a loan or seek permission of shareholders. They just play Daddy Warbucks and pull out a wad of million dollar bills. Apple’s partners, in addition to getting large-volume contracts, can get working capital as part of their arrangment with Apple without taking out loans. A definite part of the reason you were able to buy an iPad for only $499 is because Apple didn’t follow conventional wisdom about cash on hand.
The second, however, is that they have gobs of cash on hand. A lot of market watchers say Apple is foolhardy to keep so much cash on hand. On the contrary! Apple understands psychology, and not just consumer psychology. When they go to a vendor or hardware partner and ask for exclusive arrangements, priority fulfillment, or better prices, do you know what bargaining chip they have that few other companies have?
The corporate equivalent of a suitcase full of cash.
When a vendor needs to retool for a new manufacturing process Apple has developed or needs to increase their output capacity, Apple shows up with a wad of cash in hand. They don’t have to liquidate any assets or get a loan or seek permission of shareholders. They just play Daddy Warbucks and pull out a wad of million dollar bills. Apple’s partners, in addition to getting large-volume contracts, can get working capital as part of their arrangment with Apple without taking out loans. A definite part of the reason you were able to buy an iPad for only $499 is because Apple didn’t follow conventional wisdom about cash on hand.
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post pc
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After the age of about thirty [most people] almost abandon the sense of being individuals at all — and live chiefly for others, or are simply smothered under drudgery.
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