Is Carl Icahn Disappointed in Apple Inc.?

Apple's  (NASDAQ: AAPL  )  latest earnings release might be disappointing to investors, but there's one particular shareholder who won't be pleased. Carl Icahn has been pushing Apple to implement a share repurchase program in excess of $50 billion for this fiscal year, but the company just disclosed that it repurchased $5 billion of stock in the fiscal first quarter. That's just a tenth of the repurchase activity that Icahn wants.

Last fiscal year, Apple repurchased nearly $23 billion in stock, of which $12 billion came from an accelerated repurchase program. At current levels, Apple is on track to repurchase $20 billion worth of shares this fiscal year. However, if the earnings figures cause Apple to begin trending lower, the board could be opportunistic and boost repurchase activity in the coming weeks -- which would be even more accretive to current shareholders.

In the following video, Evan Niu discusses Apple's latest buyback activity with Ashraf Eassa.

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  • Report this Comment On January 28, 2014, at 1:38 AM, TheGreatFoolish1 wrote:

    are you kidding? 160 billion isn't enough? I can see keeping cash on hand, but to suggest they need it in case the worst happens is absurd. They have 10 years of operating cash assuming they don't ever sell another product. Let just agree that if they go 10 years without bringing in another dime of revenue they should just call it quits.

  • Report this Comment On January 28, 2014, at 1:44 AM, TheGreatFoolish1 wrote:

    I forgot to add, they have more cash on hand than the market cap of intel. perhaps they should buy intel. it's only at 122 bil right now.

    other companies they could buy:

    qcom

    vz

    csco

    pepsi

    mcd

    hd

    really, how much cash is enough?

  • Report this Comment On January 28, 2014, at 6:24 AM, dadeuce wrote:

    Apple needs a Business Man to run the company not a Tech geek. Tech Geeks should focus on R&D. I agree 160 Billion in cash, There's a term for this....Hording.

  • Report this Comment On January 28, 2014, at 8:53 AM, RickRickert4MVP wrote:

    ^ Hording is defined as 1) a large group, multitude, number, etc.; a mass or crowd: a horde of tourists. or 2) a tribe or troop of Asian nomads.

    I'm not really sure what a "large group" or "troop of Asian nomads" has to do with Apply and Carl Icahn. Please explain.

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