Apple CEO Jobs favors flexibility of cash hoard

Feb 25, 2010 By RACHEL METZ , AP Technology Writer

(AP) -- Apple Inc., buoyed by the success of the iPhones, iPods and computers it churns out to breathless buyers, could give some of its $25 billion in cash back to shareholders. But CEO Steve Jobs said Thursday that he thinks Apple is better off keeping that money stockpiled.

At the company's annual meeting, one asked Jobs whether the company would use some of its hoard to pay a dividend. Jobs didn't seem keen on the idea, saying the cash gives "tremendous security and flexibility."

If Apple decides to acquire another company, it can do so by writing a check instead of borrowing money, he said.

"Who knows what's around the next corner?" he said.

Apple executives also said they have ambitious plans to expand in China: They expect to open as many as 25 retail stores in the country in the next two years. Apple's first store in China opened in Beijing in 2008.

Jobs, a survivor of pancreatic cancer who was on medical leave during last year's annual meeting, was on stage at Apple headquarters Thursday in his standard uniform of a black turtleneck, blue jeans and wire-rimmed glasses. Looking thin and unshaven, he nodded appreciatively in response to shareholders who said they were glad he was back.

During the meeting Apple shareholders rejected two proposals that sought to force the company to do more to analyze its impact on the environment.

One proposal would have asked Apple to produce a detailed report. The other called for a board committee focused on sustainability. Apple, which had opposed the measures, said investors rejected the proposals but did not give voting percentages.

Responding to shareholder questions about Apple's environmental record, Jobs pointed to several steps he said the company is taking, such as getting suppliers to make products with nontoxic materials and reducing waste by cutting down on extraneous packaging.

Apple shares rose $1.34 to close at $202. The shares have traded between $82.33 and $215.59 over the past year.

Explore further: US newspaper industry revenue fell 2.6 pct in 2013

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Apple announces internal investigation

Jun 30, 2006

Apple announced an internal investigation has discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001.

Shareholders Want a Greener Apple

Apr 28, 2007

In a filing with the SEC, a group of investors asks Apple to adopt better environmental standards for the manufacturing of the Mac.

After error, Apple giving investors 'say on pay'

Apr 27, 2009

(AP) -- Apple Inc. investors will get an advisory vote on executive compensation, the company said Monday, reversing an earlier announcement in which Apple said the "say on pay" proposal failed to get enough support at the ...

Steve Jobs Blogs on Making Apple Greener

May 03, 2007

The Apple CEO's latest post outlines Apple's plans to become environmentally friendlier through safer display technology and an expanded iPod recycling program.

Recommended for you

Airbnb rental site raises $450 mn

59 minutes ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Caliban
1 / 5 (1) Feb 25, 2010
Yes, Jobs has alays been prescient. Having that kind of cash position is going to be very useful in the near future.

More news stories

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Researchers uncover likely creator of Bitcoin

The primary author of the celebrated Bitcoin paper, and therefore probable creator of Bitcoin, is most likely Nick Szabo, a blogger and former George Washington University law professor, according to students ...