“Apple Inc. Chief Executive Officer Tim Cook just bought himself more time to prove doubters wrong over the company’s growth prospects,” Adam Satariano reports for Bloomberg.
“Cook yesterday took dual steps to reassure investors who have raised questions about whether the company’s most robust gains are behind it. Apple reported surging sales of iPhones, with 43.7 million purchased in the fiscal second quarter after the handset became available through the world’s largest wireless carrier, China Mobile Ltd.,” Satariano reports. “Apple also said it will increase its share repurchase authorization by $30 billion, boost its dividend and split its stock 7-for-1.”
“The actions are the strongest retort yet from Cook, who has been under pressure to reignite growth in the absence of any new hit products. The skittishness showed itself in the stock declining 6.5 percent for the year and 25 percent from its all-time high in 2012 through yesterday. Cook said on a conference call yesterday that the current stock price doesn’t reflect the company’s proper value,” Satariano reports. “‘Apple has created tremendous value for shareholders by developing great products that enrich people’s lives and that will always be our top priority and driving force,’ he said. ‘The size of the share buyback increase is a signal of the board and the management team’s strong confidence in the future of Apple.'”
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