What to do with the cash? From BusinessWeek.com:

One radical possibility would be for Apple to snap up content. Some analysts think the company should explore acquisitions in the music business, taking advantage of the major labels’ dire straits. Though that may create conflicts, Apple could use its knowledge of shoppers to create innovative sales incentives and promote new acts. “The music industry has come to believe that their industry will be smaller,” says one source close to Apple. “Apple wants it to be a bigger, more profitable industry.” Apple declined to comment.

Who are those analysts? Read our post:

Using the example above where a company buys the indies and smallest major record label for about $3B would add $500M in profits, which would in turn add 500M x 35 P/E = $17.5B in market value for Apple and $11B for Microsoft (at a P/E multiple of 22).

Radical, heh?