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
RE: Buy market share?
2/25/2012 8:07:48 PM
It was absolutely a bigger upgrade. I've made Microsoft OS upgrades since MS-DOS 4.0 and Mac upgrades only since OS 10.2. I personally upgraded machines from both XP to Vista and 10.3 to 10.4, and featurewise the OS X upgrades have been far more substantial than a service pack. Spotlight systemwide indexing and search (which still works better than Windows Search in Windows 7) was by itself far beyond what you'd see in a mere service pack, and it was one of many additionas in that upgrade.
It seems that you are basing the value of the upgrade on something copmpletely superficial,
rather than looking at added functionality for end users and changes under the hood.
Your entire argument hinges on marketing names rather than features. Do you realize how stupid that sounds?
RE: Buy market share?
3/1/2012 5:45:29 PM
XP to Vista was almost a bigger upgrade than System 1 to OS X. The UI for the Mac has hardly changed since it came out in 1984. Sure, they've added the dock and color to the interface, but it's still the same basic UI.
At least in XP to Vista they reworked a ton of stuff. And the internals in Vista are incredibly different than they were in XP. Microsoft nearly doubled the number of APIs and features available to developers in Vista. You can't say anything like that about 10.anything to 10.anything else. It's more-or-less the same as when it shipped more than 10 years ago.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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
EU to Nokia: Don't Even Think About Becoming a Patent Troll
December 9, 2013, 10:29 AM
Apple's "iBeacon" Tracks Customers Inside Apple Stores for Enhanced Shopping Experience
December 6, 2013, 11:26 AM
Apple Says 74% of Its Mobile Devices Now Run iOS 7
December 6, 2013, 10:06 AM
Apple and Samsung See Virtual Tie in Q3 U.S. Sales, Nokia Seizes Fourth
December 5, 2013, 8:00 PM
AT&T Goes After T-Mobile with Reduced Off-Contract Prices, New Base Rates
December 5, 2013, 11:28 AM
MSI Unveils 3K Resolution GT60 Gaming, Workstation Notebooks
December 5, 2013, 11:00 AM
Most Popular Articles
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Man Arrested for Using 5 Cents Worth of Electricity to Charge Nissan Leaf at Middle School
December 4, 2013, 8:00 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information