Apple (AAPL) finished March with almost $29 billion of cash on its balance sheet. So what’s it doing with it?
Common hypotheses range from buybacks and dividends to big acquisitions and new lines of business. But we haven’t seen any of those yet.
What Apple is spending money on: A new datacenter in North Carolina, which could be a $1+ billion investment, according to MacRumors.
We’re not sure if that’s going to replace or complement some of Apple’s current infrastructure, but it’s no surprise: As the company gets deeper into Internet services, such as the iPhone “push notifications” system rolling out this summer, it’s going to need to park more servers in more places.
This is consistent with what Apple’s management has told investors it’s going to do during the recession — when many of its rivals are cutting back. That is, keep investing so it comes out of the downturn even stronger.