With last quarters earnings Apple pooled up a massive $97.6 Billion in cash reserves with no debt. Since its announcement Apple is being bombarded with numerous questions from various investors and share holders about its future plans to use the $100 Billion cash reserve effectively. Apple has announced a press call for 9AM eastern time (US) to announce its plans. This is the probably the first time Apple is doing it this way.
We are expecting some really huge announcements to be made by Apple. Arranging a press call for announcing its plans is a huge thing. Is Apple going to launch some new breakthrough products? Is Apple planning to announce dividends for its share holders? Is Apple ready to take over some more companies? Apple has been acquiring various companies like Intrinsic and Anobit making it much easier for manufacturing its own components, we are expecting a few more to be acquired down the line. Stay tuned for the news.
Update:
Well, the much anticipated press call is over and Apple announced that it would be paying $2.65 per share as dividend per quarter. This puts Apple in the top charts of all time highest dividend payers in the US. Apart from that Apple announced a buyback program of its shares.
Apple is going to be spending $45 billion of its cash reserves over a period of three years to pay it as dividend and buy back it shares. The share buy back program is aimed at spending at around $2.5 billion per quarter starting September 2012. The share buy back program will prevent dilution of employee equity by buying back public stock.