Apple CEO Tim Cook says Facebook is a 'friend,' won't commit to dividend

Posted:
in AAPL Investors edited January 2014


Investors at Thursday's Apple shareholder meeting had the opportunity to ask the company's executives about a range of topics, including the prospect of an Apple television set, a stock dividend, and its relationship with Facebook.



One shareholder asked Chief Executive Tim Cook whether he views Facebook as a "friend" or a "foe." Cook responded by calling Facebook a "friend."



"We do a lot with them, our users use Facebook an enormous amount," he said, adding: "I've always thought that the two companies could do more together."



Apple has shown a close relationship with Twitter, integrating the social networking service into iOS 5, as well as its forthcoming OS X 10.8 Mountain lion operating system for the Mac. But "share" buttons for Facebook are not yet built in to Apple's operating system.



The same shareholder also asked Cook whether he should return an LG TV that they recently purchased. Unsurprisingly, the Apple CEO offered no comment on that question.



Investors at Thursday's meetings also suggested a number of potential uses for Apple's massive $100 billion cash hoard, including a cash dividend. To that end, Cook simply repeated his previous comments that the company is thinking "very deeply" about what to do with its cash pile.



"My message there is that the board and the management are thinking about this very deeply... and we will do what we think is in the best interest of shareholders," he said.



[ View article on AppleInsider ]

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Comments

  • k2directork2director Posts: 190member
    It's nice to hear Cook say that they'll do what's in the best interest of shareholders....ie, having a healthy respect for the people that actually own the company.
  • digitalclipsdigitalclips Posts: 15,030member
    Loved the no comment on the LG TV question ...
  • stelligentstelligent Posts: 2,680member
    Apple calls Facebook a *friend*. Facebook *likes* that but has not decided to grant the request of friendship.
  • irelandireland Posts: 15,027member
    There are no friends in business.
  • jd_in_sbjd_in_sb Posts: 1,265member
    Apple should keep the money in the bank and not give out a dividend. If Apple plans to stay in business another 35 years (or longer) that means they will have to endure periodic hard times. Large cash reserves come in handy when an inflection point arrives.
  • apple ][apple ][ Posts: 7,536member
    It's enough that Apple has added Twitter integration into iOS.



    They definitely do not need to be adding any Facebook integration, with their childish "like" buttons and other nonsense. Don't make OS X all ugly, messing it up with Facebook crap.



    And why aren't there any "dislike" buttons? It makes no sense to only have "like" buttons.
  • backtomacbacktomac Posts: 4,579member
    The word Cook was looking for was 'frienemy'.



    He just couldn't remember it.
  • jungmarkjungmark Posts: 5,798member
    Quote:
    Originally Posted by jd_in_sb View Post


    Apple should keep the money in the bank and not give out a dividend. If Apple plans to stay in business another 35 years (or longer) that means they will have to endure periodic hard times. Large cash reserves come in handy when an inflection point arrives.



    Apple should wire 10% of the cash into my bank account.



    While I am a shareholder and would love a dividend, seeing Apple purchase strategic companies would be a better option.
  • SpamSandwichSpamSandwich Posts: 23,660member
    Quote:
    Originally Posted by Ireland View Post


    There are no friends in business.



    Perhaps "frenemies" instead?



    EDIT: Just noticed "backtomac"'s comment.
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by k2director View Post


    It's nice to hear Cook say that they'll do what's in the best interest of shareholders....ie, having a healthy respect for the people that actually own the company.



    Apple has been acting in the best interests of shareholders for the last 15 years or so. Nothing new here.
  • SpamSandwichSpamSandwich Posts: 23,660member
    Quote:
    Originally Posted by jd_in_sb View Post


    Apple should keep the money in the bank and not give out a dividend. If Apple plans to stay in business another 35 years (or longer) that means they will have to endure periodic hard times. Large cash reserves come in handy when an inflection point arrives.



    I agree. Although the run-up in the stock market has been spectacular, I'm not convinced it's in a recovery mode. The bottom has still not fallen out. There are a whole new wave of bankruptcies and foreclosures that are definitely coming and this has been recognized for some time.
  • longwoodboblongwoodbob Posts: 23member
    Quote:
    Originally Posted by SpamSandwich View Post


    I agree. Although the run-up in the stock market has been spectacular, I'm not convinced it's in a recovery mode. The bottom has still not fallen out. There are a whole new wave of bankruptcies and foreclosures that are definitely coming and this has been recognized for some time.



    With the recent Obama proposal on how dividends would be taxed on the table, it's very unlikely that a dividend would be considered.... a share buy back might work, however.



    Opportunities could abound if we have a second wave down... quite frankly I see it in the cards.



  • aaarrrggghaaarrrgggh Posts: 1,512member
    Quote:
    Originally Posted by SpamSandwich View Post


    I agree. Although the run-up in the stock market has been spectacular, I'm not convinced it's in a recovery mode. The bottom has still not fallen out. There are a whole new wave of bankruptcies and foreclosures that are definitely coming and this has been recognized for some time.



    My, aren't you a bastion of hope and good will!! Specific to AAPL, we are seeing a slow, mild PE recovery.



    Specific to the real-estate market, many things are still over valued, especially in high-income areas. But, from what I have seen, it is mainly in that ~10% range and not the 30-50% we saw from the top.
  • ibillibill Posts: 359member
    Quote:
    Originally Posted by stelligent View Post


    Apple calls Facebook a *friend*. Facebook *likes* that but has not decided to grant the request of friendship.







    "Friend request sent"
  • gustavgustav Posts: 799member
    Quote:
    Originally Posted by k2director View Post


    It's nice to hear Cook say that they'll do what's in the best interest of shareholders....ie, having a healthy respect for the people that actually own the company.



    Those that "own" Apple and other companies often are not concerned with the goings on of the company or its long term viability unless they see a short term gain on their investment. Many shareholders often think nothing of making poor decisions if it means a short term profit. Then they can move on to another company and do the same.



    Not sure I could have a healthy respect for that.
  • sacto joesacto joe Posts: 587member
    Quote:
    Originally Posted by LongwoodBob View Post


    With the recent Obama proposal on how dividends would be taxed on the table, it's very unlikely that a dividend would be considered.... a share buy back might work, however.



    Opportunities could abound if we have a second wave down... quite frankly I see it in the cards.







    I'm a shareholder, so I guess that gives me a right to an opinion. In my opinion, dividends are for companies that are trying to keep their stock price up. That's not even close to something Apple needs to worry about.



    However, if one views a "stock buyback" as a "stock buy" (that is, buying stock that can later be sold for a profit), then a stock buyback makes sense. In effect, they would be investing in their own ability to grow the worth of their stock. And that's a whole lot more useful for Apple.



    Of course, selling the stock in the future would tend to depress the price. So maybe just not issuing any more stock for a while can accomplish the same goal. Instead, they'd buy stock off the open market to pay off any employee stock purchases or options. Sounds like the same thing in dutch, but it allows them to "grow" the value of any future stock issues.



    We shareholders "win" because the stock quantity stops diluting. That limits the supply, which increases the demand.



    BTW, I'm not convinced by the argument of many that Apple's "job" is to do what's best for the stockholders, especially in the short term. Their primary job is to (1) grow the customer base, and (2) keep the existing customer base satisfied with their products. We "owners" are just along for the ride, for which we paid our "fare".
  • jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Sacto Joe View Post


    I'm a shareholder, so I guess that gives me a right to an opinion. In my opinion, dividends are for companies that are trying to keep their stock price up. That's not even close to something Apple needs to worry about.



    However, if one views a "stock buyback" as a "stock buy" (that is, buying stock that can later be sold for a profit), then a stock buyback makes sense. In effect, they would be investing in their own ability to grow the worth of their stock. And that's a whole lot more useful for Apple.



    Of course, selling the stock in the future would tend to depress the price. So maybe just not issuing any more stock for a while can accomplish the same goal. Instead, they'd buy stock off the open market to pay off any employee stock purchases or options. Sounds like the same thing in dutch, but it allows them to "grow" the value of any future stock issues.



    We shareholders "win" because the stock quantity stops diluting. That limits the supply, which increases the demand.



    BTW, I'm not convinced by the argument of many that Apple's "job" is to do what's best for the stockholders, especially in the short term. Their primary job is to (1) grow the customer base, and (2) keep the existing customer base satisfied with their products. We "owners" are just along for the ride, for which we paid our "fare".



    That's not the way a stock buy-back typically works. Usually, when a cash-rich company buys back its stock, it then takes the stock out of circulation and does not resell it at a later date. Since fewer shares are in circulation, the average value per share goes up proportionally.



    Apple has not issued or sold shares for a long time.
  • starbirdstarbird Posts: 42member
    Quote:
    Originally Posted by Gustav View Post


    Those that "own" Apple and other companies often are not concerned with the goings on of the company or its long term viability unless they see a short term gain on their investment. Many shareholders often think nothing of making poor decisions if it means a short term profit. Then they can move on to another company and do the same.



    Not sure I could have a healthy respect for that.



    I agree with you, but the best interest of the shareholders is the longevity of Apple, Inc. and it remaining a valuable company.
  • sacto joesacto joe Posts: 587member
    Quote:
    Originally Posted by jragosta View Post


    That's not the way a stock buy-back typically works. Usually, when a cash-rich company buys back its stock, it then takes the stock out of circulation and does not resell it at a later date. Since fewer shares are in circulation, the average value per share goes up proportionally.



    Apple has not issued or sold shares for a long time.



    Not true. They are constantly diluting with new shares. I'm simply suggesting they stop doing so - for a while.
  • sacto joesacto joe Posts: 587member
    Quote:
    Originally Posted by starbird View Post


    I agree with you, but the best interest of the shareholders is the longevity of Apple, Inc. and it remaining a valuable company.



    Only if they're holding "long". Lots of people are playing the short game.
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