Print 32 comment(s) - last by BifurcatedBoat.. on Feb 14 at 3:56 PM

Cook said the board is currently discussing Einhorn's proposal, and even called it "creative"

Apple CEO Tim Cook called David Einhorn's lawsuit against the iPhone maker "a sideshow," citing the number of media and television interviews Einhorn has participated in since it was launched.

Einhorn, an American hedge fund manager, is suing Apple over a proposed change to the company's charter that would throw out Apple's ability to issue blank check preferred stock per its judgment. More specifically, the lawsuit opposes how this charter change is packaged together with two other proposals in "Proposal 2."

Einhorn wants Apple to open up its fat wallet of $137 billion in cash and issue prepetual preferred shares that pay dividends to existing shareholders.

Cook said the board is currently discussing Einhorn's proposal, and even called it "creative." However, Cook has called the lawsuit and the number of media interviews surrounding the topic "a silly sideshow" and said it's "bizarre that we would find ourselves being sued for doing something good for shareholders."

"This is a waste of shareholder money and a distraction and not a seminal issue for Apple," said Cook. "That said, I support Prop 2. I am personally going to vote for it."

Einhorn is the influential investor that pushed for Microsoft CEO Steve Ballmer's resignation back in May 2011. He said Ballmer was key in many of Microsoft's misses at the time, such as puchasing Skype for nearly twice its market valuation and missing the boat when it came to tablets.

Source: Reuters

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RE: LoL?
By Tony Swash on 2/12/2013 7:40:32 PM , Rating: -1
What I love about that giant pile of money is that it makes Apple almost invulnerable, unkillable. Apple could fuck up so badly that it could not sell a single product to a single customer for ten years and it could still keep it's entire operation going at full size and at full cost for that whole time just by living on it's cash pile. That's not going to happen of course but it illustrates the enormous room for manoeuvre that the cash pile gives Apple.

And that cash pile will keep getting bigger.

iOS this year will outsell Windows and within two years iOS will have an installed base bigger than the Windows installed base.

Even Apple's smaller operations are getting absurdly large. Barely noticed amongst the giant growth of the iPhone and iPad business has been the growth of Apple's iTunes+Accessories business which combined is now a bigger business in terms of revenues than any of the entire handset businesses of the other phone vendors except Samsung.

RE: LoL?
By inperfectdarkness on 2/13/2013 12:02:58 AM , Rating: 2
Apple's ever-increasing pile of cash says a lot more about the intelligence level of the average consumer than it does about good business acumen.

RE: LoL?
By slunkius on 2/13/2013 2:01:44 AM , Rating: 1
since you implicitly put yourself at above average level, i believe you are sitting on even bigger pile of cash. if apple can do it, so can you. that shouldn't be too hard for an above average person.

RE: LoL?
By karlostomy on 2/13/2013 2:12:05 AM , Rating: 3
Best thing to do when you see Tony trolling, is to downvote and ignore his post

He seems to get off on the reaction he gets from people.

I suspect he leads a lonely, frustrated and angry existence and this forum is where he passive aggressively vents the suppressed rage.

If he chooses to grow up and engage in meaningful and intelligent debate, then by all means, engage him.
But the majority of his posts seem trolling in nature.
Treat them as such.

RE: LoL?
By Tony Swash on 2/13/13, Rating: -1
RE: LoL?
By retrospooty on 2/13/2013 9:53:53 AM , Rating: 2
I would assert that regardless of your location and level of human contact, feeling the need to log in to a website and champion the honor and integrity of a company is more sad than all of the above.

It must hurt to know that this hurts...

RE: LoL?
By Rukkian on 2/13/2013 10:20:00 AM , Rating: 3
I actually enjoy talking to people that have a passion for a certain product, as long as they are reasonable and willing to have a true discussion. The reason you get downvotes and hostile responses is because you come off like one of the people that no matter what is, they will not see any faults in what they believe in and follow something blindly.

You are just like the people that say everything a democrat (or republican) does is completely wrong and the opposite party is always right. The world is not black and white, it is all different shades of grey. Every person, product, political party, etc has flaws.

If you were to even once admit that apple had a flaw or 2, you would get much better responses. When you simply post trolling remarks, all you will get in response is flames. This really does point to your need to make yourself fell better about a purchase and convert others to your church of (Steve) Jobs.

There are plenty of people on this site and others that like technology and are not married to one or another, do not blindly follow anything and like to keep up to date on new technology, and then discuss those advancements.

RE: LoL?
By Cheesew1z69 on 2/13/2013 10:28:25 AM , Rating: 2
This really does point to your need to make yourself fell better about a purchase and convert others to your church of (Steve) Jobs.

RE: LoL?
By maugrimtr on 2/13/2013 10:52:26 AM , Rating: 5

This is the stupidest thing you have ever said. It is so stupid that I now know with absolute certainty that nothing you say has the benefit of intelligence.

Apple answers to its shareholders. The cash Apple holds? That belongs to the shareholders. If Apple actually tried to use that to survive by spending it down towards zero it would have only one result. Its share price would nose dive.

Apple invulnerable? Are you so completely consumed by being a fanboi that you're THAT far gone? After ten years of losses, nobody would want Apple stock - you do not invest in something whose value is eroding. Go look at HP's and Nokia's stock for the past few years.

That would prompt a shareholder revolt, the outing of the board, and a possible takeover (leveraging Apple's assets - assuming it hasn't spent them all!).

RE: LoL?
By Tony Swash on 2/13/13, Rating: -1
RE: LoL?
By Cheesew1z69 on 2/13/2013 12:26:27 PM , Rating: 3
Jeez - do you struggle with the concept of hypotheticals?
Jeez - why are you such a douche?

Apple do give money back to the shareholders in the form of dividends, they may give more in the future.
And that didn't start until AFTER Jobs died as far as I am aware.

RE: LoL?
By Tony Swash on 2/13/2013 2:04:43 PM , Rating: 1
Jeez - why are you such a douche?

You have been to debating classes again haven't you? I can tell because of the logical way you argue against differing points of view, which is quite hard, which is why the slow witted tend to just fall back on insults.

And that didn't start until AFTER Jobs died as far as I am aware.

And that's relevant how?

RE: LoL?
By Cheesew1z69 on 2/13/13, Rating: 0
RE: LoL?
By Cheesew1z69 on 2/13/2013 2:25:52 PM , Rating: 2
Oh, and have fun with your -1 ... LOL

RE: LoL?
By maugrimtr on 2/14/2013 9:42:01 AM , Rating: 1
Why do people who don't much like Apple, mostly despise it's customers and who want to see Apple stumble or be beaten in the market cry crocodile tears over the poor apple shareholders denied their access to the cash mountain? Crass flatulent hypocrisy is why.

Apple has stumbled. See price movement for past year. This is indicative of Apple's price being inflated by unreasonable expectations. So quit the preaching. Shareholders are in it to make a return. Apple share prices falling as they eat their cash cake is not part of that - dividends are a very minor theme in many Apple investors of recent years (unless you were shorting it - in which case, congratulations).

You still ignored the point I made. The cash is not a survival buffer. It's for reinvestment, improving returns, and generally ensuring Apple remains competitive (yes, including short term losses where necessary). In the long term, a losing company using up that case to cover losses for many years just signals everyone to start dumping shares before their price erodes to pennies.

RE: LoL?
By retrospooty on 2/14/2013 10:49:25 AM , Rating: 2
"You still ignored the point I made"

Tony Swash 101:
If the point makes Apple look better - make it
If the point makes Apple look worse - ignore it
If the point makes a competitor look better - change the subject and/or ignore it

RE: LoL?
By elleehswon on 2/13/13, Rating: 0
RE: LoL?
By Cheesew1z69 on 2/13/2013 1:48:06 PM , Rating: 2
That's Tony for you, delusions running rampant through his mental head.

RE: LoL?
By Tony Swash on 2/13/2013 3:25:38 PM , Rating: 1
iOS this year will outsell Windows and within two years iOS will have an installed base bigger than the Windows installed base.

the bullshit is getting pretty deep in here.

Let's think about this logically.

Taking the sales data for Microsoft's last big successful OS release, Windows 7, we get first year sales of 240 million (Source: the wikipedia page on Windows 7 - it says released October 2009 and total sales by October 2010 were 240 million). That was of course a release year and in subsequent years the figure probably fell back a bit but let's stick with the 240 million figure. Microsoft has said that Windows 8 sales are on par with Windows 7 sales.

So about 60 million window licenses sold per quarter in a launch year.

Apple sold over 75 million iOS devices last quarter.

iOS devices sales are seasonal but each year sees total sales growth so we can expect the quarterly sales to drop back below 75million in the next couple of quarters and then punch above 75 million in the next holiday season. So it is very likely that Apple will sell around 250 million iOS devices in the next year.

So iOS sales are already equivalent to Windows sales and, because Apple is selling into a very rapidly growing market and Microsoft is selling into a stagnant market, iOS sales will continue to grow and will move above Windows sales sometime in the next year or so.

The Windows installed base is around a billion. iOS already has an installed base of 400 million and 40% of all iPhone sales to date were in the last year so it won't take more than a couple of years of modest sales growth to see Apple reach a billion installed iOS devices after which it overtake the Windows installed base. The potential market for smart phones is so vast that even with slowing growth Apple can coast to a billion installed devices in the next two years.

It's deceptively easy to continue to think that the Windows business is very big but it is not when compared to the mobile device business.

RE: LoL?
By elleehswon on 2/13/2013 9:18:04 PM , Rating: 2
you see, i assumed you made a typo and were comparing osx to windows. I assumed you had a moment of mental clarity to try and compare apples to apples, rather than apples to oranges. so, while we're comparing apples to oranges, my car has more horsepower than my neighbor's cat is happy.

If you tried to pass off ios as a desktop operating system, it would have a smaller install base than dos 3.3 has now.

you are comparing 2 completely different markets..

so, i'll make another comparison.. the number of legos sold in sets and via grab bags ammount to about 19 billion legos. That's how many hundred times more than ios devices sold?

clearly, legos are better than ios devices.

RE: LoL?
By retrospooty on 2/13/2013 9:33:36 PM , Rating: 2
Funny how iOS outselling Windows in one quarter is so important, yet when comparing apples to apples so to speak... Android has been outselling IOS for 2 years and its now 5 to 1 , but that is irrelevant... LOL. What's even funnier is he thinks no one notices how full of it he is.

RE: LoL?
By BifurcatedBoat on 2/14/2013 3:56:31 PM , Rating: 1
Their big pile of cash is just an indication of how badly they've been ripping people like you off.

Does it make you feel good when you go to sleep at night knowing you made your contribution to Apple's extra cash pile by being willing to overpay?

For some reason, nobody seems to get excited about buying gas when they hear Exxon is having a record quarter...

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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