American tech firm Apple is reportedly set to make an announcement regarding its next business move after profiting remarkably from the sales of their products last year, a corporate insider reported on Monday.
Apple, who achieved record-breaking gains due to the popularity of iPhone and iPad, is ready to unveil its next plan to reallocate its immense stash of cash.
According to a New York base investment company, the leading smartphone maker will likely make an announcement by the end of March. If the speculation is true, Apple would be making such move for the second time in two years.
Shareholders have been pushing Apple to use the cash-pile with larger reinvestments or a dividend program, which Apple announced last year along with a $10 billion stock buyback.
Still, investors believe the company could have initiated bolder steps to use 2/3 of its cash-pile stored outside the country into money-generating ventures. However, the possibility of paying enormous tax prompted Apple to stay privy with that issue.
David Einhorn, the owner of hedge fund Greenlight Capital, recently filed a law suit against Apple for its failure to share more of its cash with investors.
“Apple is a phenomenal company … but Apple has a problem,” Einhorn said. “It has sort of a mentality of a depression. In other words, people who have gone through traumas — and Apple’s gone through a couple traumas in its history — they sometimes feel they can never have enough cash.”
Apple CEO Tim Cook called Einhorn’s lawsuit a ‘silly slideshow,’ insisting the company is considering all possible options to keep its investors happy and its profits growing.
Einhorn successful prevented a vote on the issue of preferred shares at the company’s annual shareholders meeting. Nevertheless, executives promised to look over the issue once the company made a decision.