Apple to boost share buyback and split stock

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Apple on Wednesday said that it plans to buy back an additional $30 billion worth of shares and split its stock.

SAN FRANCISCO: Apple on Wednesday said that it plans to buy back an additional $30 billion worth of shares and split its stock.

The moves backed by the Apple board were announced as the California company reported a profit of $10.2 billion on $45.6 billion in revenue in the first three months of this year.

The earnings figures came with Apple chief Tim Cook hinting that new products are on the way from the maker of iPhones, iPads, iPods, and Macintosh computers.

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” Cook said in a press release.

“We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

Apple will spend an additional $30 billion to buy back shares of the company’s stock, raising to $130 billion the value of shares it intends to repurchase by the end of next year.

Apple is pouring money into buying back shares because it believes the stock is undervalued in the market, according to executives.

“We’re confident in Apple’s future and see tremendous value in Apple’s stock, so we’re continuing to allocate the majority of our program to share repurchases,” Cook said

“We’re also happy to be increasing our dividend for the second time in less than two years.”

Apple will increase its quarterly dividend to $3.29 per common share.

Its board has endorsed a seven-for-one stock split, with each shareholder of record as of June 2 receiving six additional shares for each one they hold, the company said.

“We are taking this action to make Apple stock more accessible to a larger number of investors,” Cook added.

Apple shares leapt more than eight percent to $568 in after-market trades that followed release of the earnings figures and planned stock moves.- AFP