Apple Giving $100B to Shareholders
Profit falls 18% but beats analysts' estimates
By Newser Editors and Wire Services
Posted Apr 23, 2013 6:38 PM CDT
A man leaves an Apple store with an iPhone and an iPad in central Beijing.   (Alexander F. Yuan)

(Newser) – Apple is opening the doors to its bank vault, saying it will distribute $100 billion in cash to its shareholders by the end of 2015. The news came as the company released its fiscal second-quarter earnings after the stock market closed. Results beat analysts' estimates, though Apple posted its first profit decline in 10 years. Net income was $9.5 billion, down 18% from $11.6 billion in the same period a year ago. Revenue was $43.6 billion, up 11% from last year's $39.2 billion. The company's stock initially rose 5% to $425 in extended trading, then retreated to $403.50. The shares are still down 40% from a peak of $705.07 hit on Sept. 21, when the iPhone 5 went on sale.

"The decline in Apple's stock price over the last couple of quarters has been very frustrating for all of us, but we'll continue to do what we do best," said CEO Tim Cook. "The most important objective for Apple will always be creating innovative products." Investors have been clamoring for Apple to give them access to its cash hoard, which ended March at an unprecedented $145 billion. Apple's tight grip on its cash, along with the lack of ground-breaking new products, has been blamed for the steep decline in its stock price over the winter.

Copyright 2016 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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A1e8a
Apr 23, 2013 9:01 PM CDT
Apple is Crapple.
jonnynonos77
Apr 23, 2013 7:00 PM CDT
Interesting state we find ourselves in. All the profit staying at the top 1 percent, who invests it in the stock market as that's the only game in town right now, which the fed is essentially subsidizing through zero percent interest and QE3. Meanwhile companies export as many jobs as possible and push their off-shore slaves to work ever harder to maximize stockholder profits. And the middle class gets.... ? A few weeks more of unemployment benefits! Keep something in mind people, if we were calculating unemployment the same way we did prior to 2000 unemployment would be at 13 percent. Real wages haven't gone up in decade, and real net worth has declined precipitously since the 90s. What the fed and White House are doing right now is essentially praying for another bubble.