they got aces up there sleeve, they don't bow down to pressure, ala the special div everyone was calling for
@year end..nada, raise the div..nada..they got better than expected numbers coming and are being patient what is the best way to use the cash...market knows this and will pop on any thing positive and limited downside
Buy backs help temporarily but then analysts increase EPS expectations because of reduced float. Secondly, reduced float brings more volatility, which is not good when the sentiment is pretty negative.
WS wants to see growth and innovation. If the company can't deliver then it can't claim higher PE. Current PE indicates no growth but it could go lower as sentiment further sours. WS already knows that AAPL can't continue to sell 150MM cell phones every QTR. AAPL better diversify or demise will inevitable.
Use some cash, take on some debt and buy back about 125-175 billion in stock. The expected 3-3+% expected dividend increase will exceed the 1% or so that a huge loan like that would command. Buying back 20-25% of the company would see the eps soar, the company savings on what's expected to be an increased yield, would be huge, and everyone would be happy.