bloomberg 27-5-2016

Morgan Stanley analysts led by Katy Huberty and Adam Jonas recently took a look at Apple’s spending on incremental R&D and found something shocking. Not only is the creator of the iPhone forking out more now than it did when it launched its most successful product, it’s also burning more cash than the top 14 automakers combined, and that’s an industry deep in transformation. While Apple has spent $5 billion on additional research and development from 2013 to 2015, the major players looking to electrify the fossil fuel world spent only $192 million. (Tesla Motors Inc., though not one of the 14, has spent about $444 million over that same time frame.)

Q2 2016

  • second quarter ended March 26, 2016.
  • The Company posted quarterly revenue of $50.6 billion ($58 billion) and quarterly net income of $10.5 billion, or $1.90 per diluted share. ($13.6 billion, or $2.33 )( in the year-ago quarter. )
  • Gross margin was 39.4 percent (40.8 percent)
  • International sales accounted for 67 percent of the quarter’s revenue.
  • The Company also announced that its Board of Directors has authorized an increase of $50 billion to the Company’s program to return capital to shareholders. Under the expanded program, Apple plans to spend a cumulative total of $250 billion of cash by the end of March 2018. [about $45 per share]
  • “We generated strong operating cash flow of $11.6 billion and returned $10 billion to shareholders through our capital return program during the March quarter,” said Luca Maestri, Apple’s CFO.
  • 5.54 billion diluted shares
  • share repurchase authorization to $175 billion from the $140 billion level announced last year
  • quarterly dividend, and has declared a dividend of $.57 per share, payable on May 12, 2016 to shareholders of record as of the close of business on May 9, 2016.
  • From the inception of its capital return program in August 2012 through March 2016, Apple has returned over $163 billion to shareholders, including $117 billion in share repurchases.
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