Alphabet dethrones Apple to become world’s most cash-rich ..
Google’s parent company, Alphabet is now the world’s most cash-rich company. Until the second quarter of this year, Apple was known for holding the most cash in the world. Alphabet has dethroned Apple with $117 billion in cash reserves. This could set the alarm bells ringing for technology giant which is already grappling with sluggish iPhone sales, especially in India where 2018 was the worst year for iPhone sales in India.
Alphabet had a record-breaking quarter this year, where the company reported quarterly profits of $9.9 billion, which is 19% greater than the same period in previous year.
Cupertino-based tech giant Apple, on the other hand is facing a unique challenge of reinventing itself. For years, Apple has been dependent on the sales of iPhone for its profits. With declining iPhone sales, Apple has made a historic pivot from hardware to subscription-based services.
Apple has $102 billion in cash reserves and has spent a lot of its cash in stock buybacks. Since the beginning of 2018, it has spent $122 billion on stock buybacks, even the R&D spending of Apple has increased over the last few years.
Alphabet was also in the news recently for its Project Loon which is an ambitious project of expanding the internet to hard to reach areas through hot air balloons.