FILE - In this Sept. 5, 2014, file photo, the Apple logo hangs in the glass box entrance to the company's Fifth Avenue store in New York. On Wednesday, Sept. 28, 2016, Apple announced it is extending its push into selling business technology by forging a partnership with the Deloitte consulting firm to advise companies on using iPhones, iPads and Apple software in the workplace. (AP Photo/Mark Lennihan, File)

Apple has increasingly invested in riskier financial assets

$434 million

Apple’s vast financial holdings, held mostly offshore, are equal to about a third of its market value, and its investments generate about 7% of the company’s pre-tax profits. But going big in finance comes with risks.

Published   |  Photo by AP Photo/Mark Lennihan
FILE - In this Sept. 5, 2014, file photo, the Apple logo hangs in the glass box entrance to the company's Fifth Avenue store in New York. On Wednesday, Sept. 28, 2016, Apple announced it is extending its push into selling business technology by forging a partnership with the Deloitte consulting firm to advise companies on using iPhones, iPads and Apple software in the workplace. (AP Photo/Mark Lennihan, File)
$434 million

As the company’s financial assets have ballooned, they have become more complex: Its derivatives carry a “value-at-risk”—the maximum likely loss in an average day— of $434 million, the Economist reports.

FILE - In this Sept. 5, 2014, file photo, the Apple logo hangs in the glass box entrance to the company's Fifth Avenue store in New York. On Wednesday, Sept. 28, 2016, Apple announced it is extending its push into selling business technology by forging a partnership with the Deloitte consulting firm to advise companies on using iPhones, iPads and Apple software in the workplace. (AP Photo/Mark Lennihan, File)
$434 million

That’s about the same as the combined value-at-risk of the world’s ten largest investment banks.

FILE - In this Sept. 5, 2014, file photo, the Apple logo hangs in the glass box entrance to the company's Fifth Avenue store in New York. On Wednesday, Sept. 28, 2016, Apple announced it is extending its push into selling business technology by forging a partnership with the Deloitte consulting firm to advise companies on using iPhones, iPads and Apple software in the workplace. (AP Photo/Mark Lennihan, File)
$434 million

Apple used to invest in low-risk assets, like blue-chip government bonds. But since 2011, when Steve Jobs died, it has increasingly invested in riskier assets.

FILE - In this Sept. 5, 2014, file photo, the Apple logo hangs in the glass box entrance to the company's Fifth Avenue store in New York. On Wednesday, Sept. 28, 2016, Apple announced it is extending its push into selling business technology by forging a partnership with the Deloitte consulting firm to advise companies on using iPhones, iPads and Apple software in the workplace. (AP Photo/Mark Lennihan, File)
$434 million

Apple’s investments in derivatives, as measured by the value of contracts, has increased 425% since 2011, reaching $124 billion this year.

Published

Check out more stories below—and please take a quick three-minute survey to help us improve.

Share this story

home our picks popular latest obsessions search