Apple set to divulge how it will bite into huge cash pile
APPLE will today finally reveal what it plans to do with its enormous cash stockpile.
The consumer favourite, which had $97.6bn (£61.6bn) in cash and securities as of the end of last year, is likely to offer a dividend to shareholders.
Apple chief executive Tim Cook and chief financial officer Peter Oppenheimer will announce the results of its internal review in a conference call at 1pm UK time. “Apple will not be providing an update on the current quarter nor will any topics be discussed other than cash,” the company’s release stated.
The question of how the hugely successful iPhone and iPad-seller would spend its reserves – now tipped to be over $100bn – has been hotly debated by analysts. Suggestions range from a spending spree to philanthropy or cutting Apple prices.
Analyst Shaw Wu of Sterne Agee said recently he believed a yield in the two to three per cent range would be “very attractive” for shareholders as well as employees. He said the other benefit of a dividend was it “would bring in a new class of investors where funds that only invest in dividend paying stocks could now own AAPL shares.”