Rising Cash Piles for Tech Cos.

Writes WSJ:

Just five tech giants — Microsoft Corp., Cisco Systems Inc., Intel Corp., Dell Computer Corp. and Oracle Corp. — now hold a staggering $87 billion in cash and liquid investments. That is up from $77 billion a year ago, and suggests that these companies, whose revenue declined as much as 35%, aren’t as sick as conventional wisdom dictates.

To the contrary, these tech companies will likely emerge from the long slump in stronger competitive positions, compared with cash-starved and debt-ridden rivals. The titans are wielding their cash as competitive weapons. Microsoft is pouring billions into far-flung searches for new growth markets, such as Internet service, video-game consoles and cellphone software. Intel is investing $12 billion in new and retooled factories, hoping to expand its lead in semiconductor technology. Dell is grabbing market share and expanding into new products.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.