These guys are loaded with cash out the ying-yang, so I think they are going to start making movies in the tech and entertainment space to lock-in capability.  Apple has $46 billion, but the others aren’t slouches either…”While dividends are the exception rather than the rule in the tech sector, large cash stockpiles are common. For comparison, Microsoft has $36.8 billion in cash and short-term investments. Cisco has $39.1 billion. Google has $24.5 billion.”

http://news.cnet.com/8301-30685_3-20013435-264.html?tag=TOCmoreStories.0#addcomm

When M$ launched WP7, something is going to have to give…I think one of them is going to make a move on RIM…not to necessarily buy out RIM, which isn’t a slouch, but to lock in RIM to their OS.  This makes Google or likely M4 a more attractive partner, but I see this as the move we will see in the next 1-2 years.  With M$’s ability to integrate MS Office onto WP7, I think it’s an attractive option for RIM, even though they are sked to launch a new OS soon. 

The main reason why Apple has the most cash is because they are very picky about how they spend it. In the past 10 years, Apple has made only 1/4 as many acquisitions as tech rivals Google, Microsoft and IBM. Apple also spends a similar fraction on R&D by maintaining a sharp focus on key products rather than trying to chase the competition into every market.

It keeps Apple nimble, and maintains the integrity of its corporate culture, because trying to integrate a new acquisition into your structure and strategy can be a tricky business.

A good example would be Microsoft's Danger acquisition. Microsoft spent an estimated $500 million on the company, and who knows how much additional money for two years of bad management before the team brought the Kin to market.

By comparison, Apple brought the original iPhone to market for an estimated $150 million dollars and the acquisition of a two-man touch gesture company called FingerWorks. Instead of buying a whole sandwich, Apple bought some secret sauce and built the rest from stuff it had in the fridge.

Might be also that M$ pays a hefty divisdend ever quarter, whereas Apples doesn't...you know...$1.1 bllion kinda adds up.

^^this, MS pays a dividend and on top of that they did a special one time large dividend payment a few years ago as well (about 30 billion). with those MS cash pile would be at ridiculous levels today, in excess of a 100 billion.

Right! I sometimes forget that some of these tech giants actually do pay dividends.

Well, take my spiel as describing that you're unlikely to see big, flashy acquisitions from Apple.

I think RIM is still too healthy to make a good acquisition target. They pretty much defeated WinMo in the business sector, and WinPho7 looks like MS retargeting their mobile strategy towards the consumer market right now. Also, RIM has a 'whole widget' smartphone model that doesn't really mesh very well with MS's software license model. MS would either have to cast aside RIM's hardware side or risk alienating their hardware partners, and that's after already gutting RIM's software to be replaced with WinPho.

Do you think MS might be better off buying a phone hardware company? HTC perhaps?

The industry is not nearly mature enough yet for the big boys to be merging. Apple, RIM, Google, MS can all battle each other and make strides for at least 5 more years with no problems. The little guys might get snatched up here and there but there is still way too much growth for behemoths in the industry to be merging.