Apple to start buying Apple; stock repurchase plan begins this week

“Almost lost in the news last March 19 that Apple (AAPL) was initiating a $2.65-per-share dividend was Part 2 of the two-part announcement: A three-year $10 billion stock repurchase plan commencing in fiscal 2013, which began on Sunday,” Philip Elmer-DeWitt reports for Fortune.

“The repurchase plan — designed to offset the shares Apple was giving its employees in lieu of larger salaries — was neither expected nor particularly sought by Wall Street, as Bernstein’s Toni Sacconaghi noted at the time,” P.E.D. reports. “‘Was a buyback really needed?’ he asked. ‘While some investors have expressed a desire for Apple to do a buyback in addition to a dividend, we believe that this view was not widely held, with most investors preferring a larger dividend.'”

P.E.D. reports, “As for the buyback, he expected its impact to be ‘fairly diminimus’ — boosting EPS at most 1-2% per year.”

Read more in the full article here.


  1. Wise move as no matter how infatuated a person is with Apple, it is nonetheless a 36 year old company who is on a 5 year positive run but and yes there is a but, getting to the top is one thing but staying there is another ball of wax. Sony and several others can speak to this as the latter holds particularly true in tech.

    Investors should be pleased with this. FYI, I am and abeit I only own 1500 shares I do keep in eye out for any red herring.

  2. A waste of money- using cash to buy up stock. The crooks and banksters of Wall Street love the practice- which is a warning sign that it’s probably ill advised.

    1. Ok,$10 billion at about ZERO interest rate in countries that are devaluing their money vs. a 140% growth over the last 2 years. Ok, lets do a buy back!

      Unless Apple’s billions are in gold, diamonds, silver, … it is being devalued by the politicians and governments around the world. AAPL isn’t devaluing like a RIMM or DELL or HP!

      So, lets do a buy back quickly please!

  3. Of all the “criticism”of Apple this one causes me my biggest concern. When you compare Amazon to Apple to Dell you see that Apple is undervalued, however you should only buy back stock at times when the markets “perception” is off and it is a huge value to the company to buy stock. With the huge success of the iphone 5 this is NOT a good time to buy. They should have bought prior to the release when people were saying “They can’t possibly do it again”.

  4. Now lets watch. Maps is a problem widely reported brings the stock down just before Apple is set to do a stock buy back. Lets see if they suddenly have a fix in the next few weeks to bring the stock back up to 700. Conspearacy theory maybe but makes you think. Stock manipulation not just for brokers anymore.

    1. @ Jeff

      Exactly what I’ve been thinking. But then again I listen to Alex Jones… so … well … ahem … It does seem strange that we have this strange apology followed by a 30b stock drop just before a buy back…. I’m just saying …

  5. This is a good move. It offsets some significant stock grants and shows faith in the company moving forward. Make no mistake, global markets will be hard pressed to advance in 2013.

    Jobs was prescient in building up a huge cash position in advance of global downturns. Apple will spend on research & development, innovate and thrive in the hard times ahead.

    1. Not sure I follow? Cash stock piles are the property of shareholders and ROI will be required if Apple plans to retain the cash piles you speak of. Keep your eyes on Google and a renewed love affair with MSFT in 2013.

      1. By the numbers:

        1: <>


        2: Both Google and Microsoft have money in the bank. Neither have demonstrated an ability to innovate. in recent times. Perhaps hard times will force them to focus, innovate and advance their fortunes to the benefit of shareholders. We’ll see.

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