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Following Apple's announcement on Monday that it will pay aquarterly dividend of $2.65 per share as well as initiate a $10billion share buyback program, executives from the companyparticipated in a conference call with analysts and investors. Apple Chief Executive Tim Cook noted that even though the companysold 37 million iPhones last quarter, it represented less than 9percent of all handset sales. "The potential for iPhones isenormous." On the launch of the new iPad: "It just keeps getting better." 55million iPads sold to date, but no sales figures on the new iPadgiven. Apple still has less than 6 percent PC market share as the Maccontinues to grow. "We are innovating an incredible pace." Apple is also investing in distribution around the world. "We don'tsee ceilings to our opportunities," Cook said. All of this has led to Apple amassing a "substantial amount ofcash." This has led to increased research and development,acquisitions, new retail stores, building out of infrastructure andmore. "You will see all of these in the future," Cook said. "We are going to initiate a dividend and share repurchase program.We have thought very deeply and very carefully about our cashbalance. We will continue to invest in the business." Innovation remains the most important focus at Apple, and Cook saidthe new program won't make them lose sight of that. The new program is expected to broaden Apple's investor base byattracting new investors that don't currently own Apple stock. Cook said they plan to review the program periodically. Chief Financial Officer Peter Oppenheimer said Apple has been "verydisciplined" with its cash. In fiscal 2011, its cash increased by$31 billion, with $21 billion coming from abroad. Apple wants to maintain the flexibility to take advantage ofinvestment opportunities that present themselves. None of Cook's unvested RSUs will participate in dividends, at theCEO's request. "We remain very confident in the future of our business, areextremely enthusiastic about the opportunities that lie ahead, andlook forward to executing our plans to initiate a dividend andshare repurchase program," Oppenheimer said. Dividend payouts are expected to be more than $2.5 billion perquarter, or more than $10 billion per year, which would make Appleone of the highest dividend payers in the U.S. "We actually do love to announce new products, we just don't do itduring conference calls," Cook said when questioned by one analystabout its future product line. "I am extremely confident in our future. The pipeline is full ofstuff. I think customers are going to be incredibly pleased withwhat they see coming out," Cook said. Apple's dividend and share repurchase program will be done withcash held in the U.S. Bringing its overseas cash to the U.S. wouldcost Apple a great deal in taxes and Oppenheimer said the companyhas no plans to do so. On stock splits: "This is something that we have looked at while wewere looking at this cash question," Cook said. It's something they"continue to look at." Sales of the new iPad: "We had a record weekend and we're thrilledwith it," Cook said. Tens of billions of dollars of Apple's cash remains 'stuck'overseas and repatriating that cash would result in major taximplications. Apple has expressed this concern to Congress, as itbelieves existing tax laws provide significant disincentives tocorporations looking to bring cash back into the country. Apple opted to go to the hybrid (dividend/stock-repurchase)approach after much "analysis and thinking" and listening to thefeedback from their investors. The primary objective of the stock repurchase program is to reducedilution from the ongoing distribution of shares to its employeesand executives as part of their future compensation. As for Apple's domestic cash, Cook noted that "There are a widerange of potential investments" that he obviously won't talk abouttoday. There's 'no magic number' in terms of the amount Apple thinks itshould retain as a cash balance. The primary use of Apple's cash war chest, above all, remains inthe development of products. The e-commerce company in China offers quality products such as China Skin Hair Analyzer , Vacuum Slimming Machine Manufacturer, and more. For more , please visit Cryolipolysis Slimming Machine today!
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