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-   -   Apple buys back $16 billion of its own shares in one quarter (http://forums.macnn.com/112/mac-news/502523/apple-buys-back-16-billion-its/)

 
NewsPoster Jul 25, 2013 04:00 PM
Apple buys back $16 billion of its own shares in one quarter
Hidden within Apple's <a href="http://macnn.com/rd/290469==http://www.electronista.com/articles/13/07/23/revenue.inches.ahead/" rel='nofollow'>latest quarterly results</a> is an interesting discovery -- the company was scheduled under previously-announced stock-buyback plans to pick up 10 million shares of the company during the last quarter. Instead, at a cost of $16 billion, it appropriated and retired nearly 36 million shares of stock in itself. In one quarter, Apple could have purchased Blackberry and HTC, and still had $6 billion left over. The reason for the accelerated buyback isn't yet clear.<br />
<br />
<a href="http://macnn.com/rd/290470==http://www.asymco.com/2013/07/25/apples-biggest-acquisition/" rel='nofollow'>Asymco's</a> Horace Dediu says in his review of Apple's quarterly earnings that one way to think of it is that the purchase is "Apple's greatest acquisition ever."<br />
<br />
Given numbers provided by Apple, the price per share paid by the company averages out to be around $488 per share, but considering that the stock price hasn't climbed above $460 since April, the company likely purchased well more than the amount it retired for employee awards and other uses.
 
Makosuke Jul 25, 2013 04:28 PM
The amusing difference being that if Apple had purchased Blackberry and HTC, in Q2 2013 Blackberry would have lost them $200M and HTC would have earned them a paltry $42M, for a net of negative $160M, although it would have added a lot of revenue (doing nothing but lowering the company's profit percentage). In the case of Blackberry, they'd probably do better flushing the few billion down the toilet.

Buying their own stock, the same quarter's dividend will equate to about $108M.

Based on that, right call, I'd say.
 
Peter Bonte Jul 26, 2013 06:04 AM
Buy stock when its cheap. :-)
 
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