Apple's Hollow Core

Apple Computer is fresh off a blockbuster fiscal first-quarter earnings report, and the company commands more than $300 billion in market capitalization. Still, one Columbia Business School professor sees a big chink in the armor of this nigh-unassailable firm.

Bruce Greenwald, who in addition to his academic duties runs $51.9 billion for First Eagle Financial, tells The Wall Street Journal that Apple’s status as king of consumer electronics cannot last forever, as Google continues to peddle free software and Android emerges as “the Windows of the mobile world.”

The Journal also highlights Apple’s growing propensity to engage in long-term investments faster than it accumulates cash. Greenwald thinks Apple won’t be sitting on its $59.7 billion in cash for long: “If they’ve still got it, they’re likely going to waste it desperately, trying to find alternate ways to make money.”

mtaylor [at] observer.com | @mbrookstaylor

Apple's Hollow Core