Apple Expands Buybacks by $30 Billion
April 24, 2014 2:21 PM EST
Apple Inc (AAPL.O) has approved another $30 billion in share buybacks till the end of 2015 and authorized a rarely seen seven-for-one stock split, addressing calls to share more of its cash hoard while broadening the stock's appeal to individual investors.
A worker climbs outside an Apple store in Hong Kong
The company also approved a roughly 8 percent increase in its quarterly dividend to $3.29 per share. Activist investor Carl Icahn, who had famously called on the iPhone maker to boost its buyback program, tweeted his approval of the move on Wednesday. Shares of the company, which have remain mired around the $500 to $550 range since the start of the year, jumped 7 percent to $561.51 in after-hours trade.
On Wednesday, Apple reported sales of 43.7 million iPhones in the quarter ended March, far outpacing the roughly 38 million that Wall Street had predicted. That drove a 4.6 percent rise in revenue to $45.6 billion - a record for any non-holiday quarter - and beating Wall Street's projections for about $43.5 billion.
But whether Apple can again produce a revolutionary new product remains the central question in investors' and Silicon Valley executives' minds. The smartphone market is maturing and rivals like Samsung Electronics Co Ltd (005930.KS) and Google Inc (GOOG.O) are taking chunks out of its mobile-device market share.
Many hope that the next iPhone, which sources have said will sport a larger screen with new display technology, will provide a timely lift to the company's bottom line come September, when Apple usually introduces the latest version of its core product.
Speculation persists that the company will take the lead in wearable devices with a smartwatch or other gadget, given that Chief Executive Officer Tim Cook has spoken about "new product categories" for 2014.
For now, the company's momentum in China and emerging markets has been the topic of much discussion in investor circles. On Wednesday, Chief Financial Officer Luca Maestri told Reuters the jump in iPhone sales was "very broad-based," but singled out greater China and Japan, where business got a boost from the recent inclusion of NTT Docomo and China Mobile as carrier partners.
Overall revenue from greater China, which includes Hong Kong and Taiwan, climbed 13 percent to $9.29 billion in the quarter. Japanese sales rose 26 percent to $3.96 billion.
Most Popular Slideshows
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
Join the Conversation
- Target Early Black Friday 2014 Sale Ad Released For Nov. 26, 2014 Includes Deals On Toys, HDTVs And Video Games Such As ‘FIFA 15’ And ‘NHL 15’ For Xbox 360 [WATCH VIDEO]
- BHP Billiton To Turn Olympic Dam Mine To World’s 2nd Largest Copper Mine
- A Bearded Man Is Arresting UberX Drivers Across Sydney
- From Iron Ore To Infant Formula, Gina Rinehart To Build $175M Cancer Hospital In Darwin
- Chris Algieri’s Battered Face Trends On Social Media
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Black Friday Sale 2014 Deals From Amazon On Smartphones, TVs, Headsets And More
- Andrew Robb Asks Obama Not to ‘Lecture’ Australia on Climate Change
- Highest Paid NBA Players 2014: NBA Stars Who Earn More Than LeBron James