There's also the question of Apple's $137 billion cash hoard. Activist investor David Einhorn recently proposed the idea of Apple issuing preferred stock to unlock the value of the cash on its balance sheet. Einhorn also sued Apple regarding Proposal 2, a suit which Einhorn dropped after U.S. District Judge Richard Sullivan granted Greenlight Capital a preliminary injunction.
Apple management continues to look at all options regarding the return of excess cash to shareholders. Garcha noted that Apple could boost its dividend yield to 4% this year if it returns its $26 billion in excess domestic cash.
Shares of Apple were higher in Friday trading, up 0.1% to $430.91.
-- Written by Chris Ciaccia in New York>Contact by Email. Follow @Commodity_Bull