In the end, it was the fairly obvious thing: dividend + stock buyback. Starting in July, Apple will begin offering a quarterly dividend of $2.65-a-share. And in September, they’ll initiate a $10 billion stock buyback (which will be executed over three years).
Pretty straightforward and both moves will ensure that Apple will continue to have a shit-ton of cash.
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. 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.