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Thursday08 December 2022

Apple buying their own shares once again


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The first man of Apple Tim Cook announced that Apple has purchased their own shares in the amount of 14 billion dollars. Apple was over the past two weeks working diligently on buying the shares and thereby spent the mentioned amount. The reason behind the purchase is the 8% fall of shares after they published last financial results in which was announced that they sold "only" 51 million iPhones during the quarter, and despite record sales, have not fulfilled Wall Street's expectations - 55 million.

 

Yet this is not the only purchase of their own shares, because Apple last year purchased shares worth 40 billion dollars. However investor Carl Icahn is still not satisfied and demands from Apple to buy another $150 million worth of shares using borrowed money. According to his calculations it would help Apple to overcome the decline in value of the shares, and also the earnings when they start to grow again.

Tim Cook was not happy with that solution, and said that Icahn's proposal is not an option, because Apple wants to keep enough cash in the case there is a need for the purchase of a company. On that occasion, Cook was willing to spend and the amount of ten- if you will be buying into Apple's long-term interest. As this is a dizzying amounts even for Apple, this proposal must be approved by parliament, which will be held on 28th of February this year.

[Ed - If Apple really is doing this then it brings some very interesting questions. On one hand a company will gather up their stock in order to ensure they maintain control of their direction. If this is the case it could mean the Apple is under pressure to make some changes. Over the last few years Apple has been accused of chosing litigation over innovataion by churning out what appears to be little more than refreshed products yet pushing out lawsuits and patent applciations.

The other option (and much less likely) is that Apple is gearing up to be bought out. By holding the majority of the shares they make a purchase easier and more likley to go through. Our money is on the first...]

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Last modified on Monday, 10 February 2014 20:25

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