That has to be one of the most ill informed posts I have read on any forum. You would prefer buybacks that generate ZERO income to you / shareholders?
That is both a harsh and ill informed response. Now, at face value, the buybacks seem to be having a limited impact. It's disappointing to see the current price below recent buy back costs, but there are many other purchases that have been achieved at much lower costs. I think patience and foresight is required here. Something that few of the people commenting here seem to have. I think AC1234 is correct in that eventually the buy backs will work. If Apple continues to scoop up shares there is going to come a point where the impact of share contraction will favour investors. It's classic economics - supply & demand. Buffet also states that the stock market is a voting machine in the short term and a weighing machine in the long term. Let Apple scoop up shares at a discount while it is unpopular now, and long term investors will benefit greatly.
I'm surprised this is not more discussed but probably has to do with people's impatience and inability to think like Apple - objectively and long-term. It doesn't take a genius to do some simple maths on what an extension of the buy back program will do over another 5 years - the share count will reduce even more dramatically, even if Apple does have no growth (which I doubt). I do understand the knee-jerk reaction to the BB program and the desire to see cash in hand via dividends. However, I personally just reinvest my divi back into Apple, especially when it is sitting at these ridiculous prices. So for me scraping the divi and using that money for buy backs would be far more tax efficient. That is also the case for a lot of mid and long term investors. I do wish we could see some more detailed projections on this as I think a lot of investors would see the light at the end of the tunnel if this was spelt out. My gut tells me Tim knows exactly what he is doing here, and long time investors will be richly rewarded.
There are so many factors in the market. I saw myself stopped out of Apple today in part because of their paying their dividend caused the stock to drop (along with the broader market dropping as well.)
The real issue is that easy growth can be found in other places. For Apple to grow 10-20% a year is almost impossible at this stage. They would literally need another product like the Mac or iPhone and it just isn't happening.
Apple doesn't operate in a vacuum. All money is seeking the best return. Someone smaller than Apple can provide 20% growth a year and so money will flow towards that.
Some of the biggest opportunities out there I feel Apple is at least involved in and that really helps them. However they also might miss out since they so often feel they have to control the entire experience. Someone is going to be first and then someone else best with driverless technology. People have run out of time to stare at screens and so you need something that gives them more screen time. Not having to pay full attention when driving could do that. However there are millions of existing cars out there that can't just be tossed away. So someone needs to make a bunch of money on a retrofit kit.
Apple is doing many things to add to their growth in small ways. However as big as they are right now, that doesn't equal big growth. Watch bands, battery cases, etc don't add much to the bottom line though they still improve it.
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The real issue is that easy growth can be found in other places. For Apple to grow 10-20% a year is almost impossible at this stage. They would literally need another product like the Mac or iPhone and it just isn't happening.
Apple doesn't operate in a vacuum. All money is seeking the best return. Someone smaller than Apple can provide 20% growth a year and so money will flow towards that.
Some of the biggest opportunities out there I feel Apple is at least involved in and that really helps them. However they also might miss out since they so often feel they have to control the entire experience. Someone is going to be first and then someone else best with driverless technology. People have run out of time to stare at screens and so you need something that gives them more screen time. Not having to pay full attention when driving could do that. However there are millions of existing cars out there that can't just be tossed away. So someone needs to make a bunch of money on a retrofit kit.
Apple is doing many things to add to their growth in small ways. However as big as they are right now, that doesn't equal big growth. Watch bands, battery cases, etc don't add much to the bottom line though they still improve it.