“We generate more cash than we need,” says Tim Cook, Apple CEO, but is he obligated to distribute it?
To believe the financial analysts, the Cupertino company would be in agony, rolled by its competitors Samsung, HTC, one speaks even of Blackberry! The vultures fly low over the head of Steve Jobs’ successor, Tim Cook, whom they would like to see sacrificed on the altar of Wall Street.
It is therefore impatiently that appetites widen, hoping for the worst. Worse that has not happened, since Apple sales continue to grow. Apple sold 37.4 million iPhones and 19.5 million iPads, up 7% and 65% over one year, generating revenue up 11% to 43.6 billion of dollars. This does not prevent many analysts to note that the sales of the 1st quarter are lower than the last quarter of 2012. The winter was long but Christmas does not fall in March. The same goes for the sharp drop in Apple’s margins, which in a highly competitive environment is a classic, Samsung knows something about it.
So what is it? why such a voracious appetite?
Quite simply for the pot! Apple’s $ 111 billion (US $ 145 billion) in cash that the company’s equity capital would like to get their hands on.
And it is to them that Tim Cook was quick to respond yesterday by announcing a share buyback program of $ 60 billion, of which 45 billion will be taken from this wool stocking, all coupled with the payment of a increasing dividend.
“We used part of our cash to make significant operational investments through the intensification of our research and development programs, acquisitions, new store openings, early repayments, strategic investments in our supply chain and to build new infrastructure. And it’s not over ! He says. “We still have a war chest allowing us to seize strategic opportunities and have a comfortable cash flow to finance our activities. We are therefore going to implement a dividend distribution and share buyback program. “
This should satisfy some, but how long?
Steve Jobs had always refused to give in to the markets and had never paid the slightest dividend to his shareholders since his return to the helm in 1995. The founder of Apple had explained in 2010 on this subject:
“Our goal is to develop the values of the company. What do you prefer? a company with our quotation and 40 billion in the bank? or a company with our quotation and no cash in the bank? “…