Apple is opening the doors to its bank vault, saying it will distribute $US100 billion ($A97.85 billion) in cash to its shareholders over two years.
At the same time, the company said it expects sales for the current quarter to fall from the year before, which would be the first decline in many years.
Apple Inc on Tuesday said it will buy back $US60 billion in shares – the largest buyback authorisation in history. It is also raising its dividend by 15 per cent.
Investors have been clamouring for Apple to give them access to its cash hoard, which ended March at an unprecedented $US145 billion. Apple’s tight grip on its cash has been blamed for the steep decline in its stock price over the northern winter.
News of the cash bonanza coincided with the company’s release of a poor quarterly outlook for the three-month period that ends in June. The June quarter is generally a weak one for Apple, since consumers tend to hold off for the next iPhone, which the company usually releases in the fall.
Apple shares rose $US18.87, or 4.6 per cent, to $US425 in extended trading. The shares are still down 40 per cent from the peak 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,” chief executive Tim Cook said on a conference call with analysts after the release of the results. But he reinforced that the company’s job is not to boost its stock price.
“The most important objective for Apple will always be creating innovative products,” he added.
Apple posted results for its latest quarter that beat expectations, though it posted its first profit decline in 10 years.
Net income was $US9.5 billion, or $US10.09 per share, down 18 per cent from $US11.6 billion, or $US12.30 per share, in the same period a year ago.
Revenue was $US43.6 billion, up 11 per cent from last year’s $US39.2 billion.
Analysts were expecting earnings of $US9.97 per share on revenue of $US42.3 billion for the latest quarter, according to FactSet.
