Apple Issues Statement About Returning Cash to Shareholders

152516 apple logoApple has issued a press release reiterating its commitment to return some of its extremely large cash pile to shareholders, saying that Apple management and the Board of Directors are in "active discussions" about how to return cash to shareholders.

This follows letter sent to Apple shareholders this morning by Greenlight Capital [PDF], a major Apple shareholder, arguing that the company "must examine all of its options to unlock the growing value of its balance sheet".

Apple's statement:

By early last year, Apple’s cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.

We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.

Apple’s management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital’s current proposal to issue some form of preferred stock. We welcome Greenlight’s views and the views of all of our shareholders.

Aaplstock
Apple's stock price rose sharply in the minutes following the release.

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Top Rated Comments

Yvan256 Avatar
148 months ago
Anything that can shield Apple from the crazy mood of the stock market is a good thing. Their value keeps going up and down because of a few insane people who keep writing stupid rumors and predicting out-of-this-world profits based on wishful thinking.
Score: 18 Votes (Like | Disagree)
macnerd93 Avatar
148 months ago
The timing is perfect. They are giving the money back because they have "Too" much money in cash reserves. Meanwhile, Dell is going private.

Michael Dell - "What would I do? I'd shut it down and give the money back to the shareholders"

Backfire :)
Score: 18 Votes (Like | Disagree)
phillipduran Avatar
148 months ago
What about their loyal customers?

Their loyal customers buy stock. ;)
Score: 13 Votes (Like | Disagree)
portishead Avatar
148 months ago
Randy Moss would approve of the Straight Cash Homey.
Score: 9 Votes (Like | Disagree)
ogee Avatar
148 months ago
How about giving the staff, including retail, a bonus. We never get bonuses, and in my store all we were got for christmas was a small bag of peanuts!
Score: 8 Votes (Like | Disagree)
jav6454 Avatar
148 months ago
Why not simply buy back stock? Much more effective and increases value
Score: 7 Votes (Like | Disagree)