luxetlibertas

Spotify wants to raise prices and blame Apple for it. Not a pretty picture.

Apple buys back its own stock. Now it can buy more shares for the same amount (as can anyone, of course, if they wish). This is positive for shareholders, as opposed to traders who may be scared into abandoning the trade with a loss. For the manipulators to gain, traders have to lose. For the rest of us, regret about not timing the market perfectly is unwise. Even Buffett cannot time the market, and he doesn't even think about it.

Buybacks are equivalent to (untaxed!) dividends. Compare a 1% buyback with a 1% dividend: 1) they cost the company the same dollar amount. 2) after the buyback you own 1% more of the company, exactly the same as if you reinvested the dividend (ignoring tax). If you prefer the cash, just sell 1% of your holding and your share of the company and its profits remains the same, just as if you received a 1% dividend.

The current slump in share price is a big windfall for shareholders because of Apple's big buybacks. If the share price had remained at $220 there would be no talk of 'bad investment' but Apple would have had to spend several billions more for the same number of its own shares. As long as I don't need to sell right now, I greatly prefer the low share price!

redhotfuzz said:

luxetlibertas said:

There doesn't seem to be any proof of misconduct by Huawei.

You sit in on Western countries' intelligence briefings, do you?

Also, only a complete ignoramus would deny China's open and rampant practice of IP theft.

This is sloppy thinking. Proof should be open to questioning, and nothing has been brought forward, not even an accusation. Likewise, accusations of IP theft should be substantiated in court.  And Huawei is not China and China is not Huawei. China does have lots of policies that disadvantage foreign companies, even apart from the problem of being a one-party state, and these things have to be worked out preferably working together with allies. But Trump is open about what this whole trade war really is about: "‘Not on my watch’: China won’t be number one in the world, says Donald Trump" (see link in 'Reply 35'). This is standard would-be dictator strategy, inventing enemies.

@cnocbui: If Apple finances renewable energy sources delivering as much yearly electricity as Apple uses, it will make good on the 100% renewables claim. Of course, until good energy storage solutions arrive, Ireland, like almost every other country in the world, will still depend on fossil fuels. Apple cannot change that. Only Ireland can.