Notes of interest from Apple's dividend & stock buyback conference call
By AppleInsider Staff
Published: 09:02 AM EST (06:02 AM PST)
Following Apple's announcement on Monday that it will pay a quarterly dividend of $2.65 per share as well as initiate a $10 billion share buyback program, executives from the company participated in a conference call with analysts and investors.
Apple Chief Executive Tim Cook noted that even though the company sold 37 million iPhones last quarter, it represented less than 9 percent of all handset sales. "The potential for iPhones is enormous."
On the launch of the new iPad: "It just keeps getting better." 55 million iPads sold to date, but no sales figures on the new iPad given.
Apple still has less than 6 percent PC market share as the Mac continues to grow.
"We are innovating an incredible pace."
Apple is also investing in distribution around the world. "We don't see ceilings to our opportunities," Cook said.
All of this has led to Apple amassing a "substantial amount of cash." This has led to increased research and development, acquisitions, new retail stores, building out of infrastructure and more. "You will see all of these in the future," Cook said.
"We are going to initiate a dividend and share repurchase program. We have thought very deeply and very carefully about our cash balance. We will continue to invest in the business."
Innovation remains the most important focus at Apple, and Cook said the new program won't make them lose sight of that.
The new program is expected to broaden Apple's investor base by attracting new investors that don't currently own Apple stock.
Cook said they plan to review the program periodically.
Chief Financial Officer Peter Oppenheimer said Apple has been "very disciplined" with its cash. In fiscal 2011, its cash increased by $31 billion, with $21 billion coming from abroad.
Apple wants to maintain the flexibility to take advantage of investment opportunities that present themselves.
None of Cook's unvested RSUs will participate in dividends, at the CEO's request.
"We remain very confident in the future of our business, are extremely enthusiastic about the opportunities that lie ahead, and look forward to executing our plans to initiate a dividend and share repurchase program," Oppenheimer said.
