If Apple were to lose $100bn to Samsung electronics, the impact would be catastrophic for Apple, the company’s chief executive Tim Cook said.
The $100 bill Apple pays for each of its devices is the largest in the world, but Cook said that if the company were to fall into the black, the total value of its financial position would plummet by nearly a third, the Wall Street Journal reported.
Cook said that it would take Apple two years to recover from the loss and the company had already made significant investments in new products.
“If you look at our balance sheet, it’s not a good picture,” Cook told the newspaper.
“We have about $8.5 billion of cash.
The problem is we have $16 billion of debt.”
Cook said the company has taken steps to strengthen its balance sheet and boost its cash.
He said that in the next two years, Apple would add about $10 billion to its cash and hold it in an “irrecoverable reserve”.
Cook also said that Apple was in a “very difficult” situation.
“The market is not a very good place for us to be,” he said.
“If we had to close up shop for two years it’s going to take us two years.
We have a lot of investments, a lot more than we do today.”
Cook did not rule out another bankruptcy, however.
“I don’t know that there’s any scenario where we’re ever going to be able to sustain our business,” he told the Journal.
“That’s one of the reasons I think that we’re so committed to it, to make sure we get back to a position where we can have a strong balance sheet.”
Cook also reiterated his belief that Apple would continue to innovate.
“We will be a force to be reckoned with,” he added.
“And I don’t think that’s a bad thing.”