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Meh that was an overpriced patent purchase. And it was somewhat of an impulse buy, too, as Google needed to save itself from lawsuits. I really hope you're on to something and it is a purchase, though.

The timing of it does seem like a dividend. Shareholders have been demanding it and the WSJ has constantly been talking about dividends. They wouldn't be the first to give in and issue dividends.

The reasoning of a purchase means nothing when it comes to keeping it secret. There's also legal reasons surrounding keeping acquisitions as secret as possible.
 
Use the money to introduce a couple of more products: a 4.5 inch iPhone and a 7 inch iPad, so people have more choices

Ok, wishful thinking here. But I would dump my terribly buggy Android for smooth and reliable iPhone if it had a big screen :eek:

So you prefer a buggy phone with a big screen? Are you blind? Seriously. I know not everyone agrees with me, but I think that mindset is just odd. I just can't get down with a bigger iPhone. Maybe if they keep the handset the same size overall... still though, who cares? Bigger iPads... now that would be cool!
 
How would apple benefit from dividends? It's not like they have to boost their stock price, and certainly they don't have to convince investors to give them more money... they have too much of that already!

Similarly I don't see much benefit from repurchasing shares... but then, I'm no finance expert.

What could they possibly buy that costs more than a few 100 million? A wireless provider (T-mobile)? A TV provider/channel?
 
Why does Apple have to have a media conference call to announce a dividend ?

If it is something huge like a $20 billion dividend or stock buyback, they need a media conference. This would be anything but an ordinary event. Whatever they have decided to do or not do with the cash, there will be a lot of questions as to why they took that course of action as opposed to some other course of action. Here are just some of the concerns: tax consequences, how much cash will be left, whether it will be one-time or recurring?
 
Stock Price Is High?

I keep seeing this repeated over and over and over about how high Apple's stock is.

AAPL trades at about 9x 2012 earnings ex cash.

In what universe is this "high"?
 
Last thought for the evening.

Screw the shareholders! Give it to your customers!

Seriously, which one made you great and which one can you not live without?
 
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B179 Safari/7534.48.3)

There going to put it all on 32 Red.
 
How would apple benefit from dividends? It's not like they have to boost their stock price, and certainly they don't have to convince investors to give them more money... they have too much of that already!

A dividend would give investors some of that money back. It's what companies do when they decide that they have more money than they know how to invest on their behalf.

Apple is at the point where it doesn't need $100 billion in cash and investments in order to develop great products and sell them at high margins. If they can do what they are doing now with half the cash or less, they should give the rest of the cash back. We aren't expecting them to manage our money (we have companies like Fidelity or Vanguard for that). They should manage the business with the cash that they need.
 
Buy Dell, shut it down and give the money back to the shareholders.

How would that help. Dell does many things well and one of those is their enterprise support, something that apple plain sucks at. There is a reason every school and most business have Dells. Their business machines are great and their enterprise onsite support is even better. They also make machines that make sense. Businesses would much rather have a 500 dollar tower than a 2000 dollar all in one that is really not any better for their use. Apple simply does not cater to the professional market at all. For both production and corporations.

Also dells monitors are much nicer. They offer way more options, more inputs, and are futureproof. The ultrasharps come with a great 3 year zero dead pixel warranty standard.
 
Last thought for the evening.

Screw the shareholders! Give it to your customers!

Seriously, which one made you great and which one can you not live without?

They are 10% of the NASDAQ. Chances are that you have some indirect interest in Apple, either through a 401K investment or through a pension plan that your employer operates.
 
It'd be great if Apple used that money to invest in manufacturing in the United States. This would set a resounding example to other US-based companies.
 
I'm thinking they will use the money to position Apple well into the future:

1) iCloud will be the name of Apple's Global MVNO communications network.
2) An acquisition to make the Apple TV television content distribution deals fall into place. Perhaps this is a part of what Jobs meant when he "cracked" it.
3) Nintendo acquisition.
4) World Peace.
 
About the first point they do not get financing from stocks traded nor will they unless they issue more stock. AFAIK the only dilution happening to shares are through option awarded to executives not through something such as a secondary offering.

The second part is more like it they want to avoid a proxy fight. Lastly most board members are also major shareholders so they too will get a great amount of money from the dividends.
Thanks for the corrections! :cool:

The board of directors are the ones deciding whether or not to issue dividends though, right? Unless I'm mistaken? It's been a while since I took a B&M class, so some of my knowledge is spotty...

Why does a company with $100b in the bank need to worry about financing? And shouldn't the stock holders be happy that the stock is soaring?

First part is not true (refer to above post). As for the second, I think you underestimate human greed.
 
I very much doubt dividends right now, this type of announcement really sounds like a big purchase (or two).
 
Take off 15% - 30% retail price on all Macs.

Why is this downrated, Sure companies have the right to make a profit but as consumers there has to be a point where we draw the line. Its not just Apple, but its seems that many companies are never happy when their making profit. There are a lot of companies in the red and their are a lot of people in the red as well. That extra money they get through these tactics has to come from somewhere. There's a point where it becomes unethical to take even more money from people. That point is crossed when you start charge premium prices for products made with slave labor that use binned parts (yes the gpus with quarter/half the ram as the normal ones are binned, this is unacceptable in the 1800 dollar 15 inch macbook pro with 512 vram, there are 500 dollar machines that 1gb of vram) or when telecom companies come up with new fees because they know they can get away with it.
 
As much as I'm opposed to something to do with the stock, it looks like it'll be a dividend. The announcement is being made 6AM cupertino time, which implies they're going out of their way to make the announcement before the market opens.
 
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