Apple Conference Call Announcing Dividend and Share Repurchase Program for 2012


Apple has announced plans to initiate a dividend share and repurchase program. The company has $100 billion in their pockets, and some have wondered just what Apple plans to do with all that cash. Investors will likely be very happy.

Follow along below to hear what goes on. Refresh the page to keep up.

The call has started and Tim Cook opened with talking about the iPhone, iPad and Mac sales as well as Apple Stores and the money it brings to Apple. He goes into what this money brings for Apple. In a nutshell, Apple is rich and spends a lot of money on research and development, and will continue to do so as they strive to innovate.

According to Cook the dividend share and repurchase program would attract new investors. They have thought long and hard about this and Cook says it will not affect their focus on R&D and they believe that it will open up new doors, while not closing any others. They see it in the best interests of Apple and their shareholders as well as having the potential to attract new ones who haven’t invested in Apple stock.

Tim Turned the call over to Peter Oppenheimer, CFO. Oppenheimer reiterated what Tim said.

They kept the announcement short and went into a Q&A session.

The first caller tried to squeeze something out of them, and asked about Apple’s new products.

Yeah, buddy, Apple is not going to announce an HDTV during a conference call.

“We actually do love to announce new products, we just don’t do it during conference calls,” says Tim Cook, “the pipeline is full of stuff and I think our customers are doing to be incredibly pleased with what’s coming out.”

They were asked what they plan to do with over $100 billion in cash stuck overseas by a Morgan Stanley analyst. Apparently, much of their cash is overseas because of tax law. Bringing the cash back would have major tax implications, says Peter.

On the new iPad, “We had a record weekend,” Tim Cook said.

Goldman Sachs, “How do you think about growth and share repurchases if your expectations are continually beat?”

Peter says Apple is always reevaluating. They will continue to make decisions that they believe are best for Apple and their shareholders. He is also talking about keeping enough domestic cash for potential opportunities. He also mentioned enough US cash to jump at opportunities as well.

Tim Cook is reiterating that this is great for current shareholders and will attract new ones as well.

They kept restating some the the things they made during their initial announcement.

The call was actually pretty short and didn’t bore everyone to death. Unfortunately, it seems like they said everything that needed to be said within the first five minutes.

And it’s over.



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