Apple’s fiscal 2013 second quarter results were largely in-line with estimates, though guidance was rather tepid. But the big news yesterday was the increase in its buyback program to $60 billion from $10 billion and its dividend by 15%.
In all, Apple will return $100 billion to shareholders by the end of 2015. They will access debt to fund the capital return program.
Though Apple had $144.7 billion in cash at the end of March 2013, more than $102 billion of cash was overseas and repatriation of those cash balances would result in tax consequences.
While many investors had been clamoring for the management to return more cash to investors, the announcement does not appear to have satisfied most investors.
What do you think about Apple’s capital return program?
1) Apple should have announced a larger dividend and smaller buy-back
2) Instead of borrowing money, Apple should have repatriated its cash balances lying offshore
3) Increase in dividend and buy-back show that Apple is out of innovative ideas now
4) Other-please explain