[anigbrowl]

Why does Apple NEED to do anything with its cash reserves?

Because the board members have a fiduciary duty towards their shareholders. If the company literally has more cash than it knows what to do with, then it is imposing the opportunity cost of that non-use upon its shareholders. Either invest it in something with a high risk/reward potential (and accept the consequences if that investment fails), or return it to shareholders in the form of dividends or a share buyback. If the cash is just sitting in the bank doing nothing then you're paying Apple's management a fat fee for something you could equally well be doing yourself. Large, unused piles of cash are a drag upon the economy.

[neilc]

Because the board members have a fiduciary duty towards their shareholders.

Of course, if the board believes that holding the cash maximizes long-term shareholder value (e.g., by enabling acquisitions or capital expenditures down the road, or serving as a buffer in a recession), holding cash satisfies their fiduciary duty.

[masklinn]

> Because the board members have a fiduciary duty towards their shareholders.

Which isn't an issue if the board believes this cash pile is a good tool to maximize long-term shareholder value in the long run, they're in the clear.

> If the company literally has more cash than it knows what to do with

You're deeply misreading Cook's statement. He said Apple does not need its cash reserves for its operations, meaning for day-to-day expenses and management.

That does not even remotely come close to meaning they have more cash than they know what to do with.

[anigbrowl]

Past a certain point, the reasonableness of the board's belief is open to question, and that's what's going on here. The cash pile has been building long enough that some investors and commentators are skeptical about whether Apple has a long-term plan, or is suffering from a lack of imagination.