Carl Icahn Asks for Accelerated Stock Repurchase Program in Letter to Apple's Tim Cook

In a letter addressed to Tim Cook today, activist investor Carl Icahn praises Apple for its innovation, while again asking the company to accelerate its stock repurchase program. Icahn previously pressured Apple to increase its stock buyback program to as much as $150 billion, but dropped that bid following Apple's decision to repurchase $14 billion shares in February of this year.

carl_icahn
Icahn continues to note that Apple is "dramatically undervalued in today’s market" with its shares trading at half of Icahn's estimated $203 value. This valuation is likely to change as Apple's new product lineup chips away at Android's market share.

While we recognize and applaud the company’s previously increased share repurchase authorization, we ask you to consider our advice once again (to the benefit of all shareholders) and consider accelerating share repurchases again via a tender offer. Our valuation analysis tells us that Apple should trade at $203 per share today, and we believe the disconnect between that price and today’s price reflects an undervaluation anomaly that will soon disappear.

Icahn calls Apple's new iPhone models "best in class" and applauds Apple for growing its mobile ecosystem of services that surround the handset, including Apple Pay, HealthKit, and more.

Beyond simple price comparison, we see the iPhone as best in class, supported by expert reviews and by the lines of people all over the world waiting to buy it. Perhaps most importantly, we believe the iPhone will take market share because its merits are no longer viewed in isolation from the overall Apple ecosystem of products and services, which include iOS, iPad, Mac, Apps, App Store, iCloud, iTunes, and (more recently) Apple Watch, Apple Pay, Home, Health, Continuity, Beats. With the iPhone as the foundation, Apple’s ecosystem has come to play an important role in the daily life of Apple users, and while Apple continues to make impressive strides to improve it, the competition falls behind in what is arguably the most important race of this technological era.

For its part, Apple has acknowledged Icahn's letter but given no indication on its plans for the future beyond its current policy of reviewing the capital return program on an annual basis.

We always appreciate hearing from our shareholders. Since 2013 we've been aggressively executing the largest capital return program in corporate history. As we've said before, we will review the program annually and take into account the input from all of our shareholders.

Icahn disclosed last year that his holding company had taken a large position in Apple with Icahn now owning 53 million shares of AAPL. Icahn's note follows Apple's April announcement of an increased stock repurchase program that authorizes the purchase of up to $90 billion in stock and a 7:1 stock split that was instituted in June 2014. As part of its capital return program, Apple pledged to return more than $130 billion to shareholders by the end of 2015.

Top Rated Comments

PinkyMacGodess Avatar
89 months ago
Icahn is a parasite...
Score: 65 Votes (Like | Disagree)
Spanky Deluxe Avatar
89 months ago
Oh this guy again. Trying to manipulate the market again. Eugh.
Score: 41 Votes (Like | Disagree)
longofest Avatar
89 months ago
Let me rephrase that for you:

"Accelerate the repurchasing of your stock to drive the price up faster so I can sell my shares faster and make my $ faster. I really don't care about the company's long term prospects"

There you go.
Score: 36 Votes (Like | Disagree)
keysofanxiety Avatar
89 months ago
Can't stand this guy. He's a microcosm for everything cancerous about Western civilisation.
Score: 36 Votes (Like | Disagree)
MacSince1990 Avatar
89 months ago
Every one of his pictures makes me want to punch this guy in the face.

So tired of hearing about this bullying prig.
Score: 33 Votes (Like | Disagree)
spyguy10709 Avatar
89 months ago
This isn't a popular opinion around here, but shareholders own the company. Apple is worth more than 610 billion dollars. They're virtually printing money, and their future growth is going to be incredible. He's doing a good thing in the long run - with more value in the company, Apple can purchase more/larger corporations. When a company buys another, it's rarely done in terms of cash. It's done in stock. Under Icahn's projections, Apple would be worth over 1.4 Trillion dollars. That would allow them to acquire really, really big name players.

Apple truly owes money to the shareholders... because they own Apple... If the company does well, and is just sitting on a pile of cash, it is really their responsibility to give it back...

edit : Think - if they bring their stock up to a fair value, buying one of the big 2 US Cell carriers wouldn't be a problem. Or buying literally every cable company in the USA...
Score: 20 Votes (Like | Disagree)

Top Stories

AirPods Pro Beta Firmware

AirPods Pro Beta Firmware Now Available

Wednesday July 21, 2021 6:50 am PDT by
Upcoming AirPods Pro firmware updates are now available to Apple Developer Program members as beta versions. AirPods Pro firmware beta one features FaceTime Spatial Audio and Ambient Noise Reduction. Custom Transparency mode, including Conversation Boost, was initially expected to be included in the beta but appears to have been delayed for a later version. Apple made the announcement...
maxresdefault

Apple Music to Livestream Premiere of Kanye West's New Album 'Donda' on Thursday

Wednesday July 21, 2021 1:49 am PDT by
Apple Music on Thursday will host a global livestream for the premiere of Kanye West's tenth studio album, titled "Donda." The sold-out event will take place at the Mercedes-Benz Stadium in Atlanta, Georgia, and Apple Music's livestream will start at 8:00 p.m. Eastern Time. The livestream was revealed in a Beats Studio Buds ad that aired during the NBA Finals. The ad features U.S. track...
General Apps Messages

All Three Major U.S. Carriers and Google Adopt Rich Communication Services, But No Sign of Apple Interest

Tuesday July 20, 2021 1:15 pm PDT by
For the last several years, Google has been pushing a new communications protocol called Rich Communication Services, or RCS. RCS is designed to replace SMS, the current text message standard, and it offers support for higher resolution photos and videos, audio messages, bigger file sizes, better encryption, improved group chat, and more. Verizon today announced that it is planning to adopt...
ios wifi settings

Apple Confirms iOS 14.7 Fixes WiFi Bug and Many Other Vulnerabilities

Wednesday July 21, 2021 11:38 am PDT by
Following the release of iPadOS 14.7 this morning, Apple has shared details on the security updates that are included in iOS 14.7, iPadOS 14.7, macOS Big Sur 11.5, watchOS 7.6, and tvOS 14.7, all of which came out this week. Notably, Apple's documentation confirms that the iOS 14.7 and iPadOS 14.7 updates address a WiFi-related vulnerability that could impact iOS devices when joining a...
macOS Malware Feature

Common Windows Malware Can Now Infect Macs

Wednesday July 21, 2021 8:13 am PDT by
A common form of malware on Windows systems has been modified into a new strain called "XLoader" that can also target macOS (via Bleeping Computer). Derived from the Formbook info-stealer for Windows, XLoader is a form of cross-platform malware advertised as a botnet with no dependencies. It is used to steal login credentials, capture screenshots, log keystrokes, and execute malicious files. ...
macOS Big Sur Feature Orange

Apple Releases macOS Big Sur 11.5 With Podcast App Updates and Bug Fixes

Wednesday July 21, 2021 10:15 am PDT by
Apple today released macOS Big Sur 11.5, the fifth major update to the macOS Big Sur operating system that launched in November 2020. macOS Big Sur 11.5 comes two months after the release of macOS Big Sur 11.4. The new ‌‌‌‌‌macOS Big Sur‌‌‌‌ 11.5 update can be downloaded for free on all eligible Macs using the Software Update section of System Preferences. macOS Big Sur...
idos 2 app ios

Apple to Pull 'iDOS 2' DOS Emulator From App Store

Thursday July 22, 2021 3:22 pm PDT by
iDOS 2, an app designed to allow users to play classic DOS games, will soon be pulled from the App Store, the app's creator said today. According to iDOS developer Chaoji Li, he tried to submit an iDOS update with bug fixes to the App Store, but was told that the update was rejected because it violated the 2.5.2 App Store guideline that says apps cannot install or launch executable code.Durin...
airpods 3 gizmochina Feature

AirPods 3 Rumored to Launch Alongside iPhone 13 at Expected September Event

Friday July 23, 2021 12:54 am PDT by
The third-generation AirPods will likely launch at the same event revealing Apple's upcoming iPhone 13 lineup, according to a report from DigiTimes, which makes the claim citing sources familiar with the matter. The report as a whole echoes previous reporting that production of the third-generation AirPods will kickstart in August, meaning a launch shortly after can be easily expected. DigiTi...
iPad mini pro feature

Next-Generation iPad Mini Will Reportedly Feature a Mini-LED Display

Thursday July 22, 2021 9:03 am PDT by
Apple is widely rumored to be planning a new iPad mini with a significant redesign, including a larger 8.5-inch to 9-inch display with slimmer bezels, a Touch ID power button instead of a home button, a USB-C port instead of a Lightning connector, and more. According to a paywalled preview of a DigiTimes report today, the sixth-generation iPad mini will also feature a mini-LED display:BLU...
airpods 3 gizmochina Feature teal

AirPods 3 Mass Production Said to Kick Off in August

Tuesday July 20, 2021 8:40 pm PDT by
Mass production of the third-generation AirPods will kick off in August, according to a new report from Nikkei Asia. They will reportedly join a number of other products such as the iPhone 13 lineup and redesigned MacBook Pro models as launches coming before the end of the year. Renderings of rumored third-generation AirPods design Rumored launch dates for the third-generation AirPods have...