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Apple (AAPL) to Announce Plans for Its $100 Billion in Cash, Tomorrow

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By Douglas A. McIntyre Updated Published
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Apple (NASDAQ: AAPL) will answer a question that has nagged its investors for years — what will the company do with its cash? CEO and founder Steve Jobs refused to address the question. New CEO Tim Cook and Apple’s board have decided that shareholders deserve to have something done beyond the balance in instruments which yield nearly nothing.

Apple will make an announcement about the cash at 9 AM EST tomorrow.

WHAT: Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will host a conference call to announce the outcome of the Company’s discussions concerning its cash balance. Apple will not be providing an update on the current quarter nor will any topics be discussed other than cash.

WHERE: Via conference call. The dial-in number for press is (877) 616-0063 (toll-free) or (719) 219-0041. Please enter confirmation code 592016.

WHEN: Monday, March 19, 2012 at 6:00 a.m. PDT/9:00 a.m. EDT

The traditional options would be to buy back shares, set a dividend, or both. Many large tech companies have offered dividends has their sales have slowed. But, Apple’s have not.

Apple could do what Microsoft (NASDAQ: MSFT) did in  2004 which was to make a one-time dividend payment of $32 billion of its $50 billion in cash. Apple could easily afford a similar program. It rarely make acquisitions, and it will accumulate about $20 billion in cash in each of the next several quarter, if the recent past is any indication

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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