1) Why wouldn't they simply address the cash issue? If they can display some confidence here and release some cash to investors, it will speak volumes to the investor community and drive a substantial rebound. Even a one time cash payout of 10B with a 40% dividend increase would only cost them ~13.7B collectively...less than 10% of their war chest.
2) Why wouldn't they be a little more aggressive on the new product front and give some teasers? Nothing concrete, but at least a flavor that their 'amazing year of innovation' actually has some legs.
The idea that Apple always used to do it this way, is simply not enough any more. They are a more mature company and they need to adjust. They are doing themselves and shareholders no favors by sticking to the old gameplan.
pure-i have been a successful investor for 20 years and while i've had some good and some bad calls...overall, my income has been nicely complimented by my ability to pick stocks and also have the gumption to ride out the bad times.
In my experience, when a stock declines 40%, companies usually to try to comfort their investors and take actions or use language that will support a rebound in the equity price. The approach that Tim Cook is taking is really very disrespectful to his shareholders.
I'm not that fond of stock buybacks because they are usually done at too high a stock price. But at this stock price, Apple should be buying their own stock as fast as possible. It's the best shareholder return for the cash.
Why give a one time large dividend. After we get it more people will sell and walk away from the stock. Buying back their stock is the only true way to do it. This will give back to the shareholders. And do it over time so that the stock gradually goes up and up. This will also be a reason to keep holding the stock because you won't know exactly when they will buy it back. The reason they are so secretive is because Samsung has screwed them once and they are not going to let it happen again.
Apple is most likely going to announce something on earnings cc to counter the miss and bad guidance. Just pray its not a one time dividend or dividend increase. That will kill stock price for good. They need to announce an epic acquisition or buy back. Not that buy back is a good idea but beats a special dividend.
No company with cash on hand, has to advance any information. They are already paying a good dividend, the same people looking for an increased dividend or a cash payout, are not long term investors in the company, they are only thinking short term reward, and what's in it for me now. How soon we all forget when companies were raided for cash, by groups of less then respected people, they would gut a company, but everyone on the street, strip their promised pensions, and even sell all the company assets, just to feed their greed, they are not heros, they build nothing, make nothing, and yet tell us what we should expect from a company, more more more.
And just to build on my initial note....it doesn't have to be a one time dividend or a dividend increase. It can be a major share repurchase or it can be a creative solution like Einhorn's. Regardless, it needs to be something. Or maybe a strategic acquisition. Action is better than inaction at this point for Apple....