Sign in with
Sign up | Sign in

Apple Announces Plan for What It Will Do With $100 Billion

By - Source: Apple | B 60 comments

Company will start distributing dividends and buying back shares in the second half of this year.

Apple late yesterday evening announced a 9 a.m. conference call to discuss what it plans to do with its massive cash balance. However, it seems the company just couldn't wait to reveal its plans, as a press release was published this morning detailing the company's intent to launch and dividends and share repurchasing program this summer.

Apple said that it will initiate a quarterly dividend of $2.65 per share in Q4 FY2012, which begins on July 1, 2012. When FY 2013 begins in September, Apple will begin a $10 billion repurchasing program that is to be executed over three years. Apple says the program's goal is to neutralize the impact of dilution from future employee equity grants and employee stock purchase programs.

"We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future," said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program."

This is an announcement that Apple shareholders have been waiting a long time to hear. It might not be quite as exciting as a fistful of juicy acquisitions, but it's still an interesting move from the Apple camp. Apple CFO Peter Oppenheimer said the Cupertino-based company plans to spend $45 billion of domestic cash in the first three years of the programs. "We are extremely confident in our future and see tremendous opportunities ahead," he said.

Follow @JaneMcEntegart on Twitter.

Discuss
Ask a Category Expert

Create a new thread in the News comments forum about this subject

Example: Notebook, Android, SSD hard drive

This thread is closed for comments
Top Comments
  • 22 Hide
    house70 , March 19, 2012 2:27 PM
    Marco925$2,65/share? geez, apple cheap much?

    LOL, looks like Tim Cook is keeping most of it for his bonus. Just look at that smile.
    kodekov...No Philanthropy?..

    Nope. It doesn't pay dividends, so......no.
  • 17 Hide
    jimmysmitty , March 19, 2012 2:46 PM
    GreaseMonkey_62It's not just that, but the cost to manufacture something electronic in America makes it prohibitive. You could sell it for the same price but the profit margin would be nil.


    Yet Intel has 7 of its 12 (soon to be 8 of 13) FABs here in the US. Only the CPUs packaging happens in another country but they still provide thousands of high paying jobs to engineers, FAB employees and more.

    Its not as bad as people make it sound. Apple just wants to maximize profits instead.
  • 17 Hide
    s3anister , March 19, 2012 2:26 PM
    kodekovNo buying Fox-Conn?No Philanthropy?Same old Apple..


    Or they could create manufacturing facilities in the U.S. Yet they still choose maximum profit margins instead of creating jobs for a country that needs it...
Other Comments
    Display all 60 comments.
  • -3 Hide
    Marco925 , March 19, 2012 2:06 PM
    $2,65/share? geez, apple cheap much?
  • 9 Hide
    Anonymous , March 19, 2012 2:07 PM
    No buying Fox-Conn?
    No Philanthropy?
    Same old Apple..
  • 11 Hide
    alxianthelast , March 19, 2012 2:18 PM
    Foxconn employees continue to weep.
  • 17 Hide
    s3anister , March 19, 2012 2:26 PM
    kodekovNo buying Fox-Conn?No Philanthropy?Same old Apple..


    Or they could create manufacturing facilities in the U.S. Yet they still choose maximum profit margins instead of creating jobs for a country that needs it...
  • 22 Hide
    house70 , March 19, 2012 2:27 PM
    Marco925$2,65/share? geez, apple cheap much?

    LOL, looks like Tim Cook is keeping most of it for his bonus. Just look at that smile.
    kodekov...No Philanthropy?..

    Nope. It doesn't pay dividends, so......no.
  • 7 Hide
    spookyman , March 19, 2012 2:28 PM
    alxianthelastFoxconn employees continue to weep.


    Now now...

    Apple is providing a 10 year old with a job with a job and pays him a salary of $2 a week.
  • 7 Hide
    keczapifrytki , March 19, 2012 2:28 PM
    Yeah, how about you give some of that 100 billion to at the very least improve Fox-Conn working conditions, or give those people meaningful bonuses?
  • 4 Hide
    Anonymous , March 19, 2012 2:32 PM
    They should at least spend a dollar to install more anti suicide nets at Foxconn
  • 4 Hide
    cookoy , March 19, 2012 2:33 PM
    Got tired enriching the lawyers and finally giving some crumbs to the shareholders
  • -8 Hide
    homiedontrightclick , March 19, 2012 2:34 PM
    I love Apple products, but I would love a completely made in America type company to come along and crush Apple so all that money would stay here at home. I'm not holding my breath though. I don't see any other companies being able to rival the creativeness or design of Apple for a while. Its sort of annoying.
  • -2 Hide
    rantoc , March 19, 2012 2:36 PM
    Nice way to say we will purchase back stock in order to keep the value up and bribe the other share holders to keep their shares with dividend so the value wont go back there either as we expect our competition to eat market shares steadily in our two core markets (tablets and phones).
  • 0 Hide
    GreaseMonkey_62 , March 19, 2012 2:40 PM
    "Apple says the program's goal is to neutralize the impact of dilution..." aka drive up per share stock prices.
  • 4 Hide
    GreaseMonkey_62 , March 19, 2012 2:42 PM
    Quote:
    I love Apple products, but I would love a completely made in America type company to come along and crush Apple so all that money would stay here at home. I'm not holding my breath though. I don't see any other companies being able to rival the creativeness or design of Apple for a while. Its sort of annoying.

    It's not just that, but the cost to manufacture something electronic in America makes it prohibitive. You could sell it for the same price but the profit margin would be nil.
  • 17 Hide
    jimmysmitty , March 19, 2012 2:46 PM
    GreaseMonkey_62It's not just that, but the cost to manufacture something electronic in America makes it prohibitive. You could sell it for the same price but the profit margin would be nil.


    Yet Intel has 7 of its 12 (soon to be 8 of 13) FABs here in the US. Only the CPUs packaging happens in another country but they still provide thousands of high paying jobs to engineers, FAB employees and more.

    Its not as bad as people make it sound. Apple just wants to maximize profits instead.
  • -8 Hide
    christarp , March 19, 2012 2:54 PM
    Apple doesn't own foxconn, shut up about it. It's not their problem, it's the chinese governments.
  • 4 Hide
    subaru41 , March 19, 2012 3:16 PM
    alxianthelastFoxconn employees continue to weep.


    LOL, true, true.

    Why doesn't Apple spend the money on building a plant in the US and give Americans some jobs. They are the ones buy the products.
  • -1 Hide
    subaru41 , March 19, 2012 3:25 PM
    The latest rumor I read on www.modmyi.com is that they were going to invest the money in a patent for suicide nets and install more nets at their factories.
  • -1 Hide
    thrasher32 , March 19, 2012 3:37 PM
    Dang it, I was hoping it has something to do with forcing all $100 million, in one dollar bills, into their collective anal cavities.
  • 6 Hide
    mobrocket , March 19, 2012 4:03 PM
    GreaseMonkey_62It's not just that, but the cost to manufacture something electronic in America makes it prohibitive. You could sell it for the same price but the profit margin would be nil.


    that is not true at all. the difference is instead of apple making 50 billion, it would only make 30 billion...
    out sourcing isnt about cost, but about the 1% getting even more rich
Display more comments