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: Make more jobs!
2/26/2012 11:56:06 PM
There are tons of different "subsidies" that all company get for manufacturing in the US, there are subsidies for capital equipment, their are foreign tax credits (for paying taxes to foreign countries), and then the ability to write off other types of business costs. All industries get all sorts of tax writes offs (AKA- subsidies), not just Exxon and Apple.
Keep in mind, Exxon pays a TON of taxes, for example in Q1/2011, when XOM made about $10Billion in profit, they paid about $8Billion in taxes (roughly 40% of the gross).
Just do a little research, that's all. Politicians singled out the oil companies and started misleading the public in order to avert the anger that was being aimed at them.
And, I don't think I claimed you typed any words that you didn't. Interesting though trying to shift the conversation away from the topic at hand.
"Folks that want porn can buy an Android phone." -- Steve Jobs
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
Samsung Reveals Metal Unibody Galaxy A5, A3 Smartphones
October 31, 2014, 9:27 AM
Amazon Exec on Fire Phone: “We didn’t get the price right”
October 31, 2014, 8:22 AM
Moto 360 to go "Champagne Gold" for $299, According to Amazon Listing
October 30, 2014, 3:24 PM
Call-capable Samsung Gear S Smartwatch Launches Nov 7 in U.S.
October 30, 2014, 12:45 PM
Lenovo Completes $2.91B Acquisition of Motorola
October 30, 2014, 11:57 AM
Samsung Electronics Q3 Profit Falls by 60%, Mobile Division Sees 74% Profit Decline
October 30, 2014, 10:10 AM
Most Popular Articles
Amid Theater Boycott Netflix Defiantly Plans New Movies, Plus 3 TV Shows for 2015
October 24, 2014, 7:30 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
1 Million Credit Card Activated on Apple Pay Within 72 Hours, Walmart CEO Hopes Visa "Suffers"
October 28, 2014, 8:17 AM
Microsoft's Figures Show Desktop Users Flocking to Windows 10 Preview
October 27, 2014, 11:04 AM
Latest Blog Posts
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
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information