Apple Unveils Profit Sharing Plans!

Tim Cook, the man chosen by the late Steve Jobs to inherit the Apple Inc CEO position, is fundamentally changing the way Apple will work now under his rule. Today, in a much anticipated Conference call, CEO Tim Cook announced that the company will once again start paying dividends to it’s public stock share holders!

The last time Apple ever paid dividends was just before Steve Jobs took over, in December 1995. This move is also contrary to how Steve Jobs ran Apple. Jobs always insisted on building up the company’s cash reserves and rarely took any sort of input from the large shareholders.

Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program
— Tim Cook @ March 19th 2012 Press Conference (today)

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Highlights from Tim Cook’s Apple Profit Sharing Conference Call

  • Apple Inc will initiate a quarterly dividend program that will pay $2.65 per share sometime in the fourth quarter of its fiscal 2012 (starts on July 1, 2012)
  • Apple will start a $10 billion stock shares repurchasing program – primarily from employee stock grant – starting in it’s fiscal year 2013 (which begins on September 30, 2012)
  • The first year’s dividend payments is expected to be about $10 billion.
  • About $100 billion of the $553 billion that Apple has in cash, is international cash (i.e. from overseas operations of apple, outside the United States)
  • Apple grew an incredible 73 percent last quarter.
  • There are 17.7 million Apple RSU (restricted stock units) outstanding, according to CFO Oppenheimer.

CFO Peter Oppenheimer also touched upon how they arrived at these numbers today at the Conference call…

We opted to go with a hybrid approach after doing a lot of analysis and listening to input we were getting from the shareholders. Emphasis behind the dividend. Most cash is going there.CFO Peter Oppenheimer on how they arrived at these numbers
We opted to go with a hybrid approach after doing a lot of analysis and listening to input we were getting from the shareholders. Emphasis behind the dividend. Most cash is going there.

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