Samsung Copies Apple's Best Problem

We already know that Samsung has a certain level of admiration for Apple (NASDAQ: AAPL  ) . The South Korean conglomerate has taken everything it's learned as an Apple supplier and redeployed that knowledge in its own Galaxy lineup to much success. There are numerous examples of Samsung carbon copies, and sometimes it copies Apple's mistakes.

Well, there's a new way that Samsung is being like Apple, and it's in a way that's been a great problem for the Mac maker: Samsung now has too much cash.

The best problem to have
Like Apple, much of this increase is related to smartphone sales; the two companies remain the top two vendors in the world. At the end of the first quarter, Samsung was sitting on $40.1 billion in cash and investments, up from $23.4 billion a year ago.

Sources: Samsung Investor Relations and Apple SEC filings. Calendar quarters shown. Samsung figures translated from South Korean won at current exchange rates.

Samsung currently has $11.4 billion in debt on the books, which brings its net cash position down to $28.7 billion. The company has paid down some debt over the past year, but its gross cash position has grown significantly. In fact, Samsung's net cash was just $10.6 billion a year ago, meaning it's nearly tripled that figure.

Apple only recently took on debt, so its net cash position is unchanged.

Since Samsung is one of the most vertically integrated conglomerates in the world, it has much higher capital needs than Apple to build up infrastructure. Even still, the company may be left with a surplus and Samsung investors are bound to start asking for some of that money back in much the way that Apple's investors had been doing until recently. Apple's $100 billion capital return program seems to have satiated its investors for now.

Of all the ways that Samsung copies Apple, this is one of the better ways.

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Read/Post Comments (11) | Recommend This Article (3)

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  • Report this Comment On May 09, 2013, at 4:23 AM, H3D wrote:

    "...Samsung investors are bound to start asking for some of that money back in much the way that Apple's investors had been doing..."

    You haven't been doing your homework, have you.

    There is only one Samsung investor whose opinion matters. And he also runs the company. He doesn't need to ask.

  • Report this Comment On May 09, 2013, at 9:25 PM, Gaeseki wrote:

    H3D wrote: -->>>"There is only one Samsung investor whose opinion matters. And he also runs the company. He doesn't need to ask."<<<

    Ignoramus, Samsung is Global company own by global investors.

  • Report this Comment On May 09, 2013, at 10:35 PM, Gaeseki wrote:

    Apple pumper Motley Fools is misguiding again

    Technology company should Spend Cash On R&D, Not Special Dividends !!

    As the most vertically integrated conglomerates in the world, SAMSUNG is totally different from one segment company Apple, Samsung is spending MASSIVE AMOUNT of money in R&D in various sectors !

    Samsung Outspends Rivals on R&D, In-House Process Technology !!

    Samsung spent nearly $11 Billion for IT R&D in 2012 alone VS. Apple is notorious for being one of the STINGIEST spenders-Apple didn't even crack the top 20 for spending in R&D in the study.

    Through its IP-R&D strategic alignment, In the US, Samsung obtained 5,081 patents and ranked the #.2nd following the top assignee IBM in number of issued patents last year.

  • Report this Comment On May 09, 2013, at 10:45 PM, Gaeseki wrote:

    A large company, heck yet alone a enormous conglomerate company like Samsung is putting a lot of its money back into investments/future tech/research while only pocketing a 7,8 billion dollars?? THAT is very little considering they manufacture/sell so many electronics, hardware, you name it. !!!

    Meanwhile Apple is raking in more money just from their very small selection of devices. because unlike honest pricing practice of Samsung -APPLE has been over charging their products to consumers !!!

    And then I wonder, why the heck Samsung is doing so well and will continue to do well in the future... Because they don't try to "maximize" short term profits and think long term while still making enough (still making plenty) to get by.

  • Report this Comment On May 10, 2013, at 12:12 AM, Gaeseki wrote:

    >>We already know that Samsung has a certain level of admiration for Apple <<<<

    That is your delusional thinking , it's the other way around~Samsung has been kicking Apple's butt and laughing.

    Samsung didn't budge but laughed at Apple when shady Steve Jobs slandered 7-Inch Tablets 'Dead on Arrival" LOL

    ever since then lame Apple has been shamelessly copying everything from Samsung's screen sizes to mimicking Samsung's new technologies, NFC, Eye scan, flexible screen etc,,,

    Don't forget the facts delusional fools~ without Samsung's advance DNAs in Apple products you fools couldn't have seen one iPhone till today~

    IMO, Samsung made Apple.

  • Report this Comment On May 10, 2013, at 12:22 AM, Gaeseki wrote:

    America's Justice System Has Failed us All , Still reward to a patent defrauding, Tax dodging Apple on these bogus, invalidated patents??

    ►UK High Court Ordered Apple to Apologize to Samsung over Copycat Claims--Nov/02/2012

    Apple has actually been fined by the UK Court for its deceptive "false and misleading" Apology ad .--Apple CEO Tim To Go To Jail For Non-Revision of Apology-NOV/02/2012

    "British judges also warned Apple's top-level executives, including CEO Tim, that they risk being jailed if the California-based firm fails to comply with the latest court order."

    ---------

    Apple's entire grand scam of lawsuits should have been THROWN OUT and Samsung should file a defamation lawsuit against the Apple !

    ►1. Fraudulent jury foreman (Hogan) who owns Apple patents that using in Apple products and he even lied to the court about he's been sued by Seagate which Samsung is affiliated with.

    ►2. Corrupt judge didn't even allow the Samsung's evidence in the court.

    ►3. USPTO Reaffirms Invalidation of Apple Patents in Samsung Suit---April 2/2013.

    ►4. Read How Defrauding Apple went so far as to falsified evidences to wring the money out of Samsung.

    NEWS►"Apple Caught Using Photoshop to Fake More Pics in Lawsuits"--AUG 19, 2011

  • Report this Comment On May 10, 2013, at 4:28 PM, deasystems wrote:

    "Samsung currently has $11.4 billion in debt on the books, which brings its net cash position down to $28.7 billion."

    So Evan Niu thinks $28 billion is the same as $145 billion? Good one, Evan...

  • Report this Comment On May 10, 2013, at 5:43 PM, HiramWalker wrote:

    @Gaeseki - Samsung pays by the post, do they?

  • Report this Comment On May 10, 2013, at 10:25 PM, Gaeseki wrote:

    @HiramWalker, you 're wrong , I have nothing to do with Samsung personally, As a ordinary consumer i;ve been watching thru all these abuses and bullyiing by greedy Apple that made my blood boil, Samsung makes far superior products that costs more than these iPhone yet Samsung sells 40% cheaper than overpriced inferior junks like iPhone, iPad.

  • Report this Comment On May 11, 2013, at 1:36 AM, deasystems wrote:

    Sure, Gaeseki, not Samsung, but which agency hired you?

  • Report this Comment On May 11, 2013, at 12:10 PM, Loranzo2knows wrote:

    @Gaeski - Why do sadsung have only $28 billion with over a 100 non quality products to sell while Apple have $145 BILLION with about 20 superior products, ask (J D Power) you're delusional. When Apple bring out their on TV, sadsung will fall.

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