Apple to reveal decision on use of cash hoard on Monday morning

Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will host a conference call to announce the outcome of the Company’s discussions concerning its cash balance.

Apple will not be providing an update on the current quarter nor will any topics be discussed other than cash.

Analysts expect Apple to institute a dividend. It can easily afford one, since it had $97.6 billion in cash and securities at the end of last year,” Peter Svensson reports for The Associated Press. “That would be enough for a $100 one-time dividend for every shareholder, but analysts expect the company to institute a modest recurring dividend.”

Svensson reports, “Apple CEO Tim Cook and Chief Financial Officer Peter Oppenheimer will discuss the decision on a conference call at 9 a.m. Eastern time Monday morning, the company said late Sunday.”

Read more in the full article here.

MacDailyNews Note: Apple will provide live audio streaming of its conference call using Apple’s industry-leading QuickTime multimedia software. The live webcast will begin at 6:00 a.m. PDT on March 19, 2012 at www.apple.com/quicktime/qtv/call31912 and will also be available for replay for approximately two weeks thereafter. The webcast is available on any iPhone, iPad, iPod touch or any Mac or PC running QuickTime 6 or later.

MacDailyNews will provide live notes from the conference call beginning at 6am PDT / 9am EDT on Mondya, March 19th.

65 Comments

  1. I think the short version of the call will be:
    They’ve passed the 100 Billion mark, and they’re going to start issuing dividends.

    Stock buy back doesn’t make sense with the stock so high.

    A stock split may happen, but doesn’t affect what Apple does with the cash.

    A major acquisition wouldn’t be announced like this, and I don’t think the executive team at Apple is in anyway interested in taking on a major acquisition.

    Really, the only thing that I think could be a surprise here is whether or not Apple will take on some debt to finance dividends while leaving foreign money abroad until more favorable tax conditions occur.

    Additionally, I could see Apple bringing in some people and forming a VC fund, but I think this would be a minor amount of their money.

      1. Gee, and I thought that I owned my house and not the bank. How does that work again?

        Does anybody think that when they get a mortgage that they don’t also have a stake in their house? I can see why ‘the joker’ is having trouble with the concepts.

        1. That’s a really bad analogy.

          Your shares make you a part owner of a corporation. But you have very little control over the operation of the business because… you own very little of the corporation. There are specific mechanisms you have access to.

          A better analogy would be direct democracy vs. representative democracy. If you don’t like how things are run you get to throw them out — you don’t get to vote on every issue.

          (Besides, in most cases your bank technically owns your house.)

          1. Thanks. I think you may be the only one here who gets my point. Many are confused by their view of money lent to a corporation in the way of shares in the company. The company still owns the right to manage but are moderated by a board of directors who can represent the shareholders as well as the interests of the company.

        2. Actually your bank analogy is perfect — at illustrating MY point.

          With a mortgage your bank essentially owns your home. However they don’t get any input into how you manage your home day-to-day.

      2. I see the idiots are on parade here. If the share holders decide they want every last cent of Apple’s cash holdings, are you brain dead morons suggesting that Apple can overrule the shareholders and deny them this cash? Are you idiots that stupid?

        1. If that’s what the shareholders want, then they (we) have mechanisms to ask for it — including throwing out the management. But we pay these guys to run the show. The shareholders obviously trust their judgement. That’s why they’re there, to run the show for us.

          If you have a hundred million people grabbing for the steering wheel, we’ll end up in the ditch.

    1. The shareholders own the cash? That is the same brain-damaged thinking that sold us the “too big to fail” B.S. Yes, I do understand that anology will go over the heads of those I mock, which is why “Stupid People” (SP) should abstain from voting. (You probably also think that “legal resident” equates to “Natural Born Citizen”. [hint: the birth certificate was a distraction.])

  2. The “journalist/analyst” is being kind of disenjenious even a complete idiot journalist or analyst would know that only a third of that cash could actually be used because (at least) 2/3 was earned offshore and so remains offshore
    To try to pay dividends from the remaining 2/3 they would have to give up a third to the federal government. (not a clever plan, Could even be viewed as a breach of fiduciary responsibility. )

      1. Sorry I was posting from the phone, but never fear there are more than enough enough spelling Nazis to set things right again.
        And… your comprehension is lacking. Re-read the comment I wasn’t calling him an idiot, I was inferring that he knows better and was intentionally being incendiary.

        1. “..even a complete idiot journalist or analyst would know that only ..” vis a vis “And… your comprehension is lacking. Re-read the comment I wasn’t calling him an idiot…”

          uh, that’s what you typed. My comprehension is astute.

            1. I don’t think you lack of comprehension, or you lack of literacy are my “fuck-up”

              And somehow I don’t put Mark Twain in the “hi brow” Literary category, but perhaps it is where you went to school.

  3. I believe that the true and significant use of this large amount of cash will be announce:

    1. Repatriating the amount of money held over seas, and enabling it to be taxed at current US tax rates.

    2. Building of American manufacturing facilities for Apple products in the US,

    These two announcement will ignite the country, and foster a spirit of hope and optimism for the future in the US.

    American workers and Government must repond positively to this risk taking on the part of Apple.

    This will be faith in our future, and the future of the world.

    1. Oh gee! And you think the american workingpoors will be glad to work more hours for even less per month, for the others to be able to still buy things at the actual cheap prizes?
      Be realistic: the so called “amrerican way of life” has turned out to be a total waste of resources and a ethic disaster, period.
      Think different: find another way… and find it quickly! Or, follow the republican brain washing machine. Don’t even try to have any critical sense and go on believing that you can go on doing any jul…t with some kind of a god on your side making all well behind your mess.

  4. Thank you, “the joker,” for making complete sense.

    For those of you who are about to complain about what AAPL will do (and hopefully that means giving the cash back to its shareholders), Apple’s current valuation is based on its current future earnings * a growth projection. Effectively, Apple is sitting on a huge growth machine that’s throwing off cash — and then it’s hoarding that cash and generating almost no return on it (since it’s clearly generating excess cash by adding to cash reserves quarter after quarter). The cash Apple deems “excess” (what it does not need to fund its future investments) can and SHOULD be returned to shareholders so that shareholders can invest it however they would like to (instead of keeping it as cash, which generates next to nothing as returns).

    BTW, nothing’s stopping you from taking your Apple dividend and buying Apple shares — or buying anything else that, for that matter. And for those that are getting antsy that this will depress Apple’s stock price — the stock price is driven far more by Apple’s earnings and growth, which won’t change by its financial actions.

    Also, if Apple (in some fantasy world) bought some company and shut them down, instead of giving that money to the shareholders, that would be a colossal waste of capital — and downright criminal mismanagement of money that belongs to someone else. Namely, the shareholders.

    1. No problem with what you’re saying, but I want to make sure Apple keeps every penny (and then a little more) that if feels it could use. There are a lot of smart people there with great ideas. They have a huge portfilio of products woven into a massive seamless ecosystem. I can think of another dozen mini “industries” that Apple could create that add to and enhance what they already have. I just don’t ever want to hear that lack of cash prevents them from doing that.

      I just think Apple can do better with that money than I can. But if Tim Cook says tomorrow that he can’t think of a smart thing to do with that $100+ billion, sure, give it to the shareholders.

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