Barely two weeks after Q1 results, show in 2014. Apple takes action. It seems that the results disappointed investors, focused on the iPhone. Apple's CEO, Tim Cook, has revealed in an interview that the company has repurchased another $14 billion of its own shares, exceeding more than $40 billion spent on repurchased shares in the last year. A new $12,000 million acquisitions were part of the regular repurchase program, with another two billion U.S. Dollars separately purchased on the open market.
Cook told the Wall Street Journal that he was "surprised" by the eight percent drop in shares of the company following its Q1 results. Although sales in almost all areas have grown ahead of the industry as a whole, sales of the iPhone did not quite meet analyst projections, despite Cook took pains to point out that some of the deferred revenue from sales meant that they actually moved on the number of units expected. Investors were also spooked by the forecast that was lower than expected for the current quarter, which was the thought of the first results of the agreement China Mobile could offset lower revenues in Q2 normally.
In an interview with the newspaper, Tim Cook said the company has returned more than $40 billion to investors through the share repurchase program in just the last 12 months (and apparent total about $55 billion through the program since its inception) - the largest amount ever spent on repurchasing shares over such a short period of time. Apple had initially committed to repurchasing a total of $60 billion in stock in 2015, but expanded with the goal of $100 billion to pressure some investors.
Investor Carl Icahn, who has been trying to get Apple to buy back an additional $50 billion of its shares at the top of the expanded program and was bringing a proposal on the matter, to the shareholders meeting later this month. He told the paper, €I was satisfied with the unexpected, aggressive, and accelerated share repurchase program.€ Cook said he was 'very confident in what we're doing and what we plan to do,' and Icahn commented 'that's me' when asked for a comment. Icahn currently has about $4 billion in AAPL today.
When asked about investments surprise, Cook said, €this means we are betting on Apple... [And] are not saying that. We are proving that with our actions.€ He spoke of wanting to be €aggressive€ and "opportunistic", taking advantage of falling prices AAPL to save the company money in the long term (as a retired stock pays no dividends), as well as help to make the most attractive stocks. Then, after reaching the realm of $700 - plus per share, investors fear that Apple's success could be a fad and rescued in stock, shipping collapses below $400 per share before finally stabilized in recent months between $500 and $550 per share.