Einhorn has a point: what the hell is Apple doing sitting on that money?

Apple hoards cash, apparently, "like a person who has gone through a trauma".

Apple has had to fend off an attack from one of its share holders who is demanding it fork out more of its $137bn cash pile to investors.

David Einhorn has sued iPhone maker Apple accusing the most valuable company in the world of having a “depression era” mentality.

But for a company with a reputation like Apple, which no amount of third world worker scandals seems able to damage, this should be seen as nothing more than an advertisement, splashing the fact that Apple is sitting on more ready cash than a fair amount of small countries on to headlines around the world.

The billionaire activist, who heads up hedge fund Greenlight Capital, told US TV news channel CNBC that Apple hoards cash like a person who has gone through a trauma, referring to Apples near bankruptcy in the early ‘90s before Steve Jobs turned the firms fortunes around with the introduction of the iPod.

Apple shares have tumbled 35 per cent from their peak in September 2012 as its growth has slowed, despite the successful, if not phenomenal, launch of the iPad mini and iPhone 5.

Einhorn’s opinion may be justified; Apple is planning to eliminate its “preferred” stock, which pays out a fixed dividend over time, at its shareholder meeting later this month. These shares are better than ordinary shares when it comes to paying out a company's assets.

Einhorn, it should be noted, has a history of corporate meddling. In May 2011, Einhorn called for Steve Ballmer, (who is still) CEO of Microsoft, to step down after Microsoft was passed by both IBM and Apple in market value.

While Einhorn may not be the most trustworthy of activists, his point may well stand: What the hell is Apple doing with all that money? 

Apple has never explained its reasons for holding onto the cash other than to say its preserving its options but it certainly isn’t using it to develop new products. Apple's tally for research and development in 2012 was 2 per cent of its annual spend, dwarfed by its tech rivals. IBM’s for example is 6 per cent.

While Einhorn’s motives for demanding Apple make use of their cash maybe entirely about increasing his own fortune, Apple is in danger of stagnation if it doesn’t use its vast hoard wisely. 

Maybe the reason it has yet to spend its money is that, without the guiding light of Jobs at the helm, it doesn’t know what to spend it on.

Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

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Could tactical voting stop Brexit?

Could tactical votes soften the Brexit blow?

Could tactical voting save Britain from the hardest of exits from the European Union?

That's the hope of Open Britain, which has unveiled a list of 20 seats held by supporters of a hard Brexit (19 Conservatives and one Labour MP, Kate Hoey) in areas that either split evenly in the referendum or backed a Remain vote, and a list of 20 seats held by pro-Europeans: among them Labour MPs Pat McFadden and Liz Kendall, Liberal Democrat MPs Nick Clegg and Tom Brake, and Caroline Lucas, the Greens' sole MP. (Read the full list here.)

"Remain group seeks to oust pro-Brexit MPs" is the Guardian's splash. The intiative has received the thumbs up from Peter Mandelson on Newsnight and Tony Blair in the Guardian. But will it work?

A quick look at the seats in question shows the challenge for anyone hoping for a pro-European front to frustrate Brexit. Theresa Villiers has a majority of more than 7,000 over Labour: and if you're a voter in Chipping Barnet who backed a Remain vote because you were worried about your house price, is Jeremy Corbyn really the answer to your problems? (That said, it's worth noting that thanks to the scale of the 2015 defeat, Chipping Barnet is one of the seats Labour would have to win to get a majority in the House of Commons.)

Or take, say, Kate Hoey in Vauxhall, one of the few people in Labour who can claim to be a unifying figure these days. Yes, she is deeply unpopular in her local party who have mounted several attempts to remove her. Yes, Vauxhall voted heavily to Remain. But - as Jessica Elgot finds in her profile for the Guardian- it also has a large amount of social housing and has more children living in poverty than all but 51 other seats in the House of Commons. There are a great number of people who believe their own interests are better served by sending a Labour MP to Westminster rather than refighting the referendum.

That's a reminder of three things: the first is that the stereotype of the Remain vote as people straight out of the Boden catalogue misses a number of things. The second is that for many people, Brexit will take a back seat.

But the big problem is that you can't make an anti-Brexit - which, by necessity, is essentially an anti-Conservative - alliance work if the main anti-Conservative party is so weak and unattractive to most people. "Voting pro-European" may give Labour's Corbynsceptics a way to advocate a vote for Labour that doesn't endorse Jeremy Corbyn. That doesn't mean it will succeed in stopping Brexit.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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