Carl Icahn Abandons Push for Apple to Boost Stock Buyback
Billionaire Carl Icahn has abandoned his effort to encourage Apple to increase its stock repurchasing program, according to a new letter addressed to Apple shareholders. Icahn had aggressively pushed for an increased stock buyback of up to $150 billion, going so far as to recommend a proxy vote for shareholders to support his agenda.
In explaining his reversal, Icahn points to a recent decision by Apple to repurchase $14 billion on a dip in the company's stock price following its most recent earnings announcement. Well-known proxy advisory firm Institutional Shareholder Services (ISS) this week also sided with Apple and recommended against Icahn's scaled-back $50 billion stock buyback plan presented to shareholders.
That being said, we also agree with ISS's observation, taking into account that the company recently repurchased in "two weeks alone" $14 billion worth in shares, that "for fiscal 2014, it appears on track to repurchase at least $32 billion in shares." Our proposal, as ISS points out, "thus effectively only asks the board to spend another $18 billion on repurchases in the current year."
As Tim Cook describes them, these recent actions taken by the company to repurchase shares have been both "opportunistic" and "aggressive" and we are supportive. In light of these actions, and ISS's recommendation, we see no reason to persist with our non-binding proposal, especially when the company is already so close to fulfilling our requested repurchase target.
Icahn went on to say that he is excited about Apple's future, which will see the company introduce products in new categories this year. Rumors strongly suggest Apple is working on a watch/fitness band with sensors to potentially measure steps, calories, heart rate, glucose levels and more. Apple has assembled a "dream team" to work on this iWatch product, hiring a number of the best and brightest scientists from the medical device and health sensor field.
Apple's 2014 annual meeting of shareholders is scheduled for February 28, 2014.
Popular Stories
YouTube channel Front Page Tech is back today with another video that provides a closer look at iOS 19's alleged design changes.
The video contains re-created renders of iOS 19, which are allegedly based on real footage of the software update, provided by sources within Apple. Overall, iOS 19 is expected to have a more glass-like, visionOS-inspired design, with added translucency for user...
Apple's upcoming iPhone 17 Pro models will feature a redesigned rear camera panel that spans the width of the device, but it will be the same color as the iPhone itself, rather than being part of a two-tone design.
That's according to Bloomberg's Mark Gurman. Writing in his latest Power On newsletter, the reporter says the iPhone 17 Pro won't have a two-toned back, as some renders have...
A new report from The Information today reveals much of the internal turmoil behind Apple Intelligence's revamped version of Siri.
Apple apparently weighed up multiple options for the backend of Apple Intelligence. One initial idea was to build both small and large language models, dubbed "Mini Mouse" and "Mighty Mouse," to run locally on iPhones and in the cloud, respectively. Siri's...
Apple is preparing a "major shake-up" for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman.
iPhone X released in 2017 for 10th anniversary
Writing in his latest Power On newsletter, Gurman says that Apple plans to launch a foldable iPhone alongside a "bold" new iPhone Pro model that makes more extensive use of glass.
Could this mean Apple plans to realize former...
U.S. President Donald Trump "absolutely" believes that Apple could manufacture its iPhones and other devices in the United States, Press Secretary Karoline Leavitt said today during a media briefing.
Leavitt was asked whether Trump thought that iPhone manufacturing is the kind of technology that could move to the U.S. "Absolutely, he believes we have the labor, we have the workforce, we have ...
Later this year, Apple will introduce the iPhone 17 series, which includes the iPhone 17 Pro and the iPhone 17 Pro Max, two new high-end flagship devices that will be sold alongside the regular iPhone 17 and an all-new ultra-thin iPhone 17 Air.
If you have been holding out for the iPhone 17 Pro or its bigger sibling, here are five of the biggest changes, informed by the latest reports and...
If you have an older Apple device that you've been considering upgrading, you're probably wondering how the newly announced tariffs might impact prices going forward, and whether it's worth buying now before there's a price hike.
Given analyst and economist responses to the tariffs, market panic, and Trump's stance on the current financial chaos, the answer is that making a purchase...
Apple employees are testing iOS 18.4.1 for iPhones, according to the MacRumors visitor logs, which have been a reliable indicator of upcoming iOS versions. The software update will likely be released in a week or two, if not sooner.
As the version number implies, iOS 18.4.1 will obviously be a minor update that addresses software bugs and/or security vulnerabilities.
There are no...
Apple in October 2024 overhauled its 14-inch and 16-inch MacBook Pro models, adding M4, M4 Pro, and M4 Max chips, Thunderbolt 5 ports on higher-end models, display changes, and more. That's quite a lot of updates in one go, but if you think this means a further major refresh for the MacBook Pro is now several years away, think again.
Bloomberg's Mark Gurman has said he expects only a small...
