Straight from the horse’s mouth:
“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.”
Not sure how I feel about this. One the one hand I think it’s good for shareholder’s, and I want to belive that Tim Cook & Co know exactly why they’re doing this, on the other hand I feel they should have used the cash in other ways. I’ll elaborate on this in a future post, when I’ve made up my mind on the issue.