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Big pay day for Apple shareholders

Tuesday, April 23, 2013 - 02:47

April 23 - Apple is giving shareholders what some want- more money. But even a record corporate dividend couldn't keep the stock afloat in after-hours trade when CEO Tim Cook failed to share details of forthcoming products. Bobbi Rebell reports.

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Apple shareholders are going to get paid more- the company which has a $145 billion cash pile is doubling the amount of cash they are returning to shareholders- after its earnings beat low expectations for the second quarter. Apple raised its dividend by 15 percent to $3.05 a share- making it the biggest dividend payer in the world. Apple - also significantly boosting its stock buyback. Kevin Burden, Director of Mobility at Strategy Analytics: SOUNDBITE: KEVIN BURDEN, DIRECTOR, MOBILITY, STRATEGY ANALYTICS (ENGLISH) SAYING: "I think the money they are going to be giving back to investors is not a bad decision on Apple's part. I think a lot of the investors are actually deserving of this money. They have, they certainly could put more money towards innovation and I think they will put more money towards innovation." That innovation is sorely needed. It's facing steep competition- rival Samsung is out with its new Galaxy S4 this week- Apple doesn't have any big launches on the calendar right now. They are still selling a lot of their existing products. 37.4 million iPhones and 19.5 million iPads in the second quarter. But they are making less money on them. SOUNDBITE: KEVIN BURDEN, DIRECTOR, MOBILITY, STRATEGY ANALYTICS (ENGLISH) SAYING: "You have to realize that almost half of those are the older 4s models. Obviously, they don't sell at the same price tag as the iPhone 5. So that has a big mark on its margins. But the other main thing is Apple is selling into a lot more foreign markets right now and the set up costs of going into, you know, certain countries within Asia or in Latin America in terms of setting up retail stores and setting up app stores, getting local language. This is all a very large expense." Investors' patience has been wearing thin. While Apple stock rose in the regular session Tuesday ahead of earnings, it's down more than 40 percent from its record high of more than $700 back in September. That is a loss of $280 billion in market value. Burden says the only way to stem the slide- wow the markets: SOUNDBITE: KEVIN BURDEN, DIRECTOR, MOBILITY, STRATEGY ANALYTICS (ENGLISH) SAYING: "It's been about a half a year since we've actually seen a new product out of Apple, a significant new product out of Apple. We will see new iPhone software coming out over the next couple months. We'll see a new iPhone, iPhone 5s potentially in the July/August time frame . You know, they have got- there is a number of different avenues they can do down. I believe that there is probably a lot of products that are probably in back labs in Apple that we have yet to see yet. " But Apple didn't give any details about new products- and following its earnings call, the stock fell back in after-hours trading.

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Big pay day for Apple shareholders

Tuesday, April 23, 2013 - 02:47

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