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
Apple Giving $100B to Shareholders
A man leaves an Apple store with an iPhone and an iPad in central Beijing.   (Alexander F. Yuan)

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. (More Apple stories.)

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