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

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.

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  • Marco925
    $2,65/share? geez, apple cheap much?
    Reply
  • No buying Fox-Conn?
    No Philanthropy?
    Same old Apple..
    Reply
  • alxianthelast
    Foxconn employees continue to weep.
    Reply
  • s3anister
    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...
    Reply
  • spookyman
    Maybe they can buy Microsoft out?

    Reply
  • house70
    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.
    Reply
  • spookyman
    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.
    Reply
  • keczapifrytki
    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?
    Reply
  • They should at least spend a dollar to install more anti suicide nets at Foxconn
    Reply
  • cookoy
    Got tired enriching the lawyers and finally giving some crumbs to the shareholders
    Reply