Apple announces dividend and share repurchase program, will spend $43 billion over 3 years

Apple has announced dividend and share repurchase program expected to cost them $45 billion over the next 3 years. The conference call is about to start, so more as this develops.

Here's the press release:

Apple Announces Plans to Initiate Dividend and Share Repurchase Program

Expects to Spend $45 Billion Over Three Years

CUPERTINO, California—March 19, 2012—Apple® today announced plans to initiate a dividend and share repurchase program commencing later this year.

Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

“We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future,” said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

“Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs,” said Peter Oppenheimer, Apple’s CFO. “We are extremely confident in our future and see tremendous opportunities ahead.”

Apple will provide live streaming of a conference call to discuss its plans beginning at 6:00 a.m. PDT on Monday, March 19, 2012 at The Company will not be providing an update on the current quarter nor will any topics be discussed other than cash. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those regarding future business outlook and plans for dividends and share repurchases. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 24, 2011 and its Form 10-Q for the fiscal quarter ended December 31, 2011. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, Review, The TV Show, Vector, ZEN & TECH, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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There are 13 comments. Add yours.

Fresh says:

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. Wow u guess really do flock in a line

Chris says:

That's not iMore's words...notice it's in the shaded quote font still...

Brad says:

You moron. That statement is from Apple's press release! Goes to show how uninformed and uneducated you are.
You can read it for yourself here:

Tekoo says:

Hahahahaha!! And that's how you make a fool of yourself online in a matter of seconds!! How bloody stupid can people be...

Sancho90 says:

Apparently Fresh's eyesight and reading capabilities aren't so.... Wait for it.... FRESH.

jacobovillegas says:

title says $43 billion, article says $45 billion

Eskemo30 says:

article also says approximately

cardfan says:

Nice of Apple to help pay for my ipad.

Dark_Blu says:

Name another tech company in this economy that is making the kind of money Apple is while not laying off any employees? They're sitting on 100billion in cash. Haters can hate, but they can't deny the numbers. Even if iMore had made those statements, the fact is that they are true. Apple has a lock on User experience and they sell products that deliver it. No one else has a clue about that. That's not fanboism. That's simple math and facts.

Tadddd says:

True. They are very successful. I'm sure outsourcing only helped a little. As it does for every other tech company in the states. Let's keep supporting all of them!

Usrs Gustav says:

If you hate Apple then why are you reading viewing this site? Much less making comments that I am sure are ment to bash Apple. They seem to make the writer look Stu.... Wait a little

Will medina says:

Lmao this n!gga trying to be like sancho90. Get ur own style brrraaa lmao

Jaffa374 says:

You know, I understand most of the tech that they produce and love it all, and install it for customers, but what I just read? I have NO CLUE what it meant...... I'm guessing in a nut shell basically investors and share holders get part of there money back on a certain schedule? some one care to clarify for me?