According to a report from Financial Times, Apple Inc., one of the the world’s leading consumer electronics company has more cash than the government of United States. Apple announced its quarterly earnings at $75.876 billion, as of July 2011, which is around $2 billion more than the U.S Government’s operating balance of $73.786 billion.
Steve Jobs is now more liquid than Uncle Sam.
While it’s highly unlikely that President Barack Obama is looking to ask the founder and chief executive of Apple Inc. for a loan, it became a fact as of Thursday afternoon — the world’s largest technology company now has more cash on hand than the most powerful democracy on Earth has spending room.
As Republicans and Democrats continue to work towards a compromise to the country’s debt ceiling crisis, the U.S. Treasury Department said on Thursday that Washington now has a total operating balance of only US$73.768-billion.
Meanwhile, Apple currently boasts a cash reserve of US$75.876-billion, as of its most recent quarterly earnings report at the end of June.
Apple is renowned for its products such as iPhone, iPad, iPod, Macs and number of other softwares. In 1998 Apple released its first ever all in one Macintosh desktop computers named iMac — since then it has been in a profitable mode.
The earnings of Apple and the U.S. government cannot be compared directly. The main reason is that the operating income cannot be utilized fully by the U.S. Government — it shows just how much they have to spend before hitting the debt ceiling. While in case of Apple, $75 billion (approx.) represents the profit or the extra cash in hand. Apple with these figures can easily buy the entire mobile industry excluding Samsung.
Apple is currently the leading smartphone vendor and manufacturer with a 28% share in United States. In the second quarter of this year, it has shipped more units than any other electronics company.
Currently, Apple is the world’s second largest company with a capital of $363 billion — Exxon Mobil, a multinational oil and gas corporation is at the number one spot. It will not be a surprise if Apple overtakes Exxon Mobil in the coming years.