Pre-orders for the iPhone 5 topped 2 million in just 24 hours, a staggering number that far exceeded expectations. Luckily for Apple(AAPL -2.19%), in addition to making great products, the company has also mastered logistics and supply-chain management.
With the iPhone 5 already a runaway hit, Apple's profits are set to be gargantuan. Which raises the question: What is the world's biggest company going to do with so much money? With tens of billions in cash on its balance sheet, Apple could seek out its next big acquisition, or even increase its dividend.
Investors shouldn’t hold their breath, though. At this point, Apple is likely to keep its earnings close and hold off on immediate acquisitions or dividend increases. Both are likely to come in time, but expect Apple's main focus to be channeling that money back into the brand and into new innnovations for the future.
Apple is the most influential company in technology and has delivered market-smashing returns for those lucky enough to have invested in the company -- case in point being the iPhone 5's immediate, unprecedented success. If you're looking for a recommendation on how to play Apple, along with continuing updates and guidance on the company whenever news breaks, we've created a brand-new report that details when to buy and sell Apple. To get started, just click here now.
