Apple to open the door of the bank vault, said the $ 10 billion in cash that will be distributed to its shareholders by the end of 2015. At the same time, the company said the quarter's revenue may fall from the previous year, this will be the first decline since many years.
Apple CEO Tim Cook also suggested that the company will not release any new products until the fall, it is expected that there will be a new iPhone and iPad is the opposite in the summer.
Apple said on Tuesday that it will expand its stock repurchase program to $ 6 billion - the largest in the history of the Repurchase Mandate. It also improves by 15%, from $ 2.65 to $ 3.05 per share dividend. This is equivalent to the current stock price, the dividend yield of 3%. 20 of the company paying the dividends in the United States, the average yield is 3.1%, according to Standard & Poor's.
Investors in the long-awaited Apple to give them access to its cash reserves, as of March an unprecedented $ 145 billion. Apple borne in cash, as well as the lack of a breakthrough new product has been blamed for a sharp decline in its share price in the winter.
News cash bonanza coincided with the three-month period ended in June, a poor quarter outlook released.
The stock market closed Tuesday, Apple released its second-quarter profit. Initially the company's stock to $ 425, up 5% in after-hours trading, then dropped $ 2.63, or 0.7%, to $ 403.50, CEO Commenting on the new product, to arrive in the fall.
The price is still $ 705.07 Hit September 21, a drop of 40% from the peak of iPhone 5 sales.
CEO Tim Cook said: "For all of us, in Apple's stock price fell in the past few quarters has been very frustrating ... but we will continue to do what we do best, In a conference call with analysts after the release of the results. but he strengthened the company's work is not boost its share price in the short term.
"Will always be the most important goal for Apple is to create innovative products," he added.
Apple's results beat the consensus analyst estimated in accordance with the Company, announced its first profit decline in 10 years.
Net income of $ 95 billion, or 0.09 yuan per share, from $ 1.16 billion U.S. dollars, or 2.30 yuan per share, down 18% from a year earlier.
Revenue of $ 43.6 billion, an increase of 11% from $ 39.2 billion in the same period last year.
Analysts expected earnings per share $ 9.97 $ 42.3 billion in revenue, According to FactSet.
Just the beginning of the second quarter, Apple said it expects sales of $ 33.5 billion to $ 35.5 billion. In the same quarter last year, sales of $ 350 billion. Wall Street expects the U.S. dollar, sales of $ 3.8 billion.
The second quarter is usually a weak, for Apple, because consumers tend to wait for the next generation iPhone, the company is usually released in the fall. However, compared with the same period last year fell a signal that Apple failed to grasp the continued growth of smartphone sales. Lopsided in the United States and other mature markets, instead of many consumers in India and China can afford to buy the iPhone.
"The results of our 2012 fiscal year is incredibly powerful, very difficult to compare this year," Cook said.
Apple shipments of 37.4 million iPhones in the latest quarter, year-on-year increase of 7% from a year ago. This confuses the expected shipments may decline, but it is still a weak number compared with the previous quarter, shipments doubled compared to the same period last year. The average wholesale price of an iPhone also fell to $ 613 Apple cut its oldest model, iPhone 4 price to attract buyers in the developing world.
Apple began the payment of a dividend, and has a modest number of shares bought back in the summer of last year, enough to balance the dilution of its employee stock option plan, but does not make a dent cash pile. The company said it is expanding, which began in October, is set to run until the end of 2015, from $ 10 billion to $ 60 billion dollars of repurchase. Increase the quarterly dividend due to be paid on May 16.
The company continues to face pressure from Wall Street than using cash, earn less than 1% interest. Investors reason, if there is no better use of the money, it should be left to shareholders. The company has said it is considering how to use the money this year, working with hedge fund managers want it to create a new class of shares dividend interested in attracting investors open debate.
Contradictions, cash-flush Apple will be to borrow money to support repurchases and dividends. This is because two-thirds of the cash living abroad account. It does not put money into the United States, because it would prefer not to pay the U.S. corporate income tax. Instead, it will use the income derived from the United States and the United States account cash, coupled with borrowed money.
Apple bet the U.S. Federal corporate tax rate of 35% - one of the highest in the world - will fall in the future, or will have a the repatriation tax amnesty period, in 2004.
When a company begins to distribute cash to shareholders, it is usually a sign that its stagnation, it found it difficult to identify a good way to invest in their business. But Apple is still the standard of the rapid growth of large companies, the phenomenal success of the iPhone reflect its cash pile.
Its earnings compared to Apple's stock price is low. Investors buy Apple stock, pay $ 9.20 for every dollar of Apple's annual net income. By comparison, they are willing to pay $ 24 per dollar of Google's profits.
This indicates that the investor has ended, Apple will no longer like the iPhone or iPad launch a revolutionary product. Greater commitment to repurchase may reinforce this impression, said David Tan, assistant professor at Georgetown University, strategic focus on technology.
"How can we say anything about Apple's long-term prospects to read this move?" Tan said. "Does this mean this is all Apple has provided this is only temporary, and we wait for the next big thing from the company to leave?"
Investors have become increasingly frustrated with Apple. The company has been the release of the existing line to update their mobile devices and computers, because Cook became CEO 20 months ago, rather than blazing as the unveiling of the iPod in 2001, iPhone's 2007 debut, and in 2010 the introduction of the iPad technology trails, "said Lauren Barthes, Oracle Investment Research analyst. At the same time, Samsung Electronics has gained a larger market share of the smartphone screen and other features, Google is creating a buzz with its own Nexus Tablet PC. Google has also expanded to "wearable computing" glasses connected to the Internet, is expected to start selling in the end of this year or early next year.
"The market is tired of the same old things in the apple," Barthes said. "Investors are looking for innovation. The reality of the situation is that people are looking for other products, and now they are looking for other cool features from competitors. "
Apple is rumored is a "smart" watch and revolutionary TV work, but there is no confirmed. Cook sounded slightly in Tuesday's call, more open, the iPhone has a larger screen, just saying that Apple will not be shipping the larger screen of the phone, as long as the picture quality of other measures, such as brightness, which means that the trade-off.
Cross Research analyst Shannon - Cross said, Apple has developed a plan, and its cash reserves, investor focus will shift back to Apple's upcoming products.
"I hope that now we have been through, people will begin to pay attention a little bit more on the basis of," Cross said. "I think the fundamentals this quarter as demand for their products remains strong, I do not think Apple's brand has diminished, according to the figures we have seen."
 



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