Apple CEO Tim Cook: We Have More Money Than We Need
February 24, 2012 8:13 AM
comment(s) - last by
Cook is wondering what to do with the company's $97.6 billion
There's no doubt that Apple is a cash cow. Just last year, many reports started circulating that the tech giant had
a larger bank account than the U.S. government
, where Apple ended June 2011 with $76.2 billion and the government had $73.8 billion. Now, Apple CEO Tim Cook is saying that the company has more money than it needs.
At the annual shareholders' meeting on Thursday, which is the first since former Apple CEO Steve Jobs' death, Cook tried to determine whether Apple should stop
the way Jobs has been for years, or if it's time to stick a hand in the $97.6 billion cookie jar and pay shareholders a dividend this year.
Apple used to pay shareholders a quarterly dividend, but stopped doing so in 1995 because of Apple's financial hardships. Apple even had to turn to Microsoft for a $150 million infusion around the time that Jobs came back as CEO in 1997.
After those dark times, Jobs held on to every cent that the company made. When the new millennium rolled around, Apple started seeing great success with Macs, Macbooks, iPods/iPod touch's,
. Despite the large amount of cash coming in, Jobs continued pinching pennies.
Now, Jobs has been deceased since October 5, 2011, and Cook is looking to use some of the money that it has because he said "it's more than we need to run the company." The problem is figuring out what to do with the money.
Paying a dividend to shareholders would offer a long-term increase to Apple's stock price because it would lure new investors who only buy shares in companies with a dividend.
However, Apple shareholder Asif Khan of Sugar Land, Texas suggested that Cook not provide a quarterly dividend every three months because it might be misinterpreted by some investors that Apple is losing faith in its ability to continue pushing its stock price higher as the company keeps introducing popular products. Rather, Khan would prefer Apple to pay a one-time divided later this year before the federal tax rate limits dividends to 15 percent.
Apple's stock has soared 50 percent over the past year, producing about $160 billion in shareholder wealth and now has a market value of $480 billion. Shares of Apple rose less than 1 percent to $516.39 at closing yesterday.
Another suggestion of what to do with the cash was to buy Greece, which is currently experiencing a debt crisis, but Cook said Apple is not interested.
The cash cow is only likely to get larger with Apple planning several product and software launches this year. For instance, the
is due to be announced at an event next week, and the
OS X Mountain Lion
operating system is due this year as well.
This article is over a month old, voting and posting comments is disabled
2/24/2012 11:44:00 AM
You mean like they used to back when the higher cost of an Apple product was because of it's US origin?
2/24/2012 1:25:04 PM
As opposed to what? No reason at all? :P Yes. I've stated in other articles the cost would only increase by 25-30% on the baseline, internal side of things causing the consumer to absorb maybe half... i.e. a 10-15% price increase at most.
I don't support or condone Apple, but if they were to make a move like this, it certainly would make me look at them more favorably. The products would finally have a reason to command a premium.
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
OS X 10.8 Mountain Lion Growls at the Masses
February 16, 2012, 1:48 PM
Report: Apple to Debut iPad 3 During First Week of March
February 10, 2012, 9:36 AM
Apple Has Another Blowout Quarter with $13B in Profit; Sells 37M iPhones, 15M iPads
January 24, 2012, 5:02 PM
Apple's iPhone Outsells All Android Phones Combined at Verizon
January 24, 2012, 4:18 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information