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Apple expands buybacks by $30 bln, OKs 7-for-1 stock split

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Reuters SAN FRANCISCO
Last Updated : Apr 24 2014 | 2:45 AM IST

SAN FRANCISCO (Reuters) - Apple Inc has approved another $30 billion in share buybacks till the end of 2015 and authorized a rarely seen seven-for-one stock split, addressing calls to share more of its cash hoard while broadening the stock's appeal to individual investors.

On Wednesday, Apple reported sales of 43.7 million iPhones in the quarter ended March, far outpacing the roughly 38 million that Wall Street had predicted. That drove a 4.6 percent rise in revenue to $45.6 billion - a record for any non-holiday quarter - beating Wall Street's projections for about $43.5 billion.

Whether Apple can again produce a revolutionary new product remains the central question in investors' and Silicon Valley executives' minds, as the smartphone market matures and rivals like Samsung Electronics Co Ltd and Google Inc take chunks out of its mobile-device market share.

Many hope that the next iPhone, which sources have said will sport a larger screen with new display technology, will provide a timely lift to the company's bottom line come September, when Apple usually introduces the latest version of its core product.

For now, the company's momentum in China and emerging markets has been the topic of much discussion in investor circles. On Wednesday, Chief Financial Officer Luca Maestri told Reuters the jump in iPhone sales was "very broad-based," but singled out greater China and Japan, where business got a boost from the recent inclusion of NTT Docomo and China Mobile as carrier partners.

Shares of the company, which have remain mired around the $500 to $550 range since the start of the year, were halted after the bell.

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(Reporting by Edwin Chan; Editing by Bernard Orr)

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First Published: Apr 24 2014 | 2:32 AM IST

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