On February 7, 2014, Apple bought back $14 billion of its own stocks. $12 billion of the $14 billion was bought back from Apple’s existing buyback program, with the remaining $2 billion purchased on the open market. Apple CEO Tim Cook in an interview with the Wall Street Journal tried to encourage concerned shareholders with a big key point Apple is working on in 2014. He views the company in a growth phase and has reiterated that in 2014 Apple will enter new product categories. Apple’s revenues compared to previous years has slowed though many companies would love to have the $14-15 billion revenues Apple experienced for fiscal year 2013.
Investor concern with Apple is not a surprise considering it is valued as one of the largest companies by market value. Compared to other companies Apple is extremely meticulous in design and quality to provide the best products and experience to customers whether it is individuals or businesses. Although Google owns Android, the most used mobile software, the company doesn’t hold a candle to Apple. Though Apple’s mobile software is of lesser penetration, it the company has a larger market share than its nearest competitor.
Shareholders are understandable to maintain concern against the nibbling of Google. Rumors swirl regularly what new products in new categories that Apple may release to combat Google, Microsoft, Samsung and others. The top fad many companies are reportedly working on on is wearables and Apple has no shortage of rumors and hints of there potential move into that category.
Judging from recent hires into the Apple camp from sites like MacRumors and AppleInsider, Apple is definitely working on one or multiple products in new ranges than it exists in currently. In addition, Apple is working on new methods to make existing products better through the use of Sapphire glass and other materials.
While shareholders and critics may show worry over Apple, I feel there best is probably yet to come. Even though, Jobs is not with us anymore, he left the company in a much better situation than he was brought back into to resuscitate the near bankrupt success it is today.
References
Appleinsider. (2014, February 07). Cook discusses bigger iphones, motorola sale, android and more in interview. Retrieved from http://appleinsider.com/articles/14/02/07/cook-discusses-bigger-iphones-motorola-sale-android-and-more-in-interview
domain-b. (2014, February 08). Google briefly overtakes exxonmobil as world's 2nd most valuable company . Retrieved from http://www.domain-b.com/investments/world_markets/20140208_exxonmobil.html
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