Apple to reinvest billions to buy... Apple

Apple is to invest $10 billion dollars over the next three years in a share repurchase programme. Essentially, that means iit is investing some of the large amounts of cash sitting in its coffers in buying stock in itself.

The company will also be making regular dividend payments to its existing shareholders. It will pay its first quarterly dividend of $2.65 a share in Q4, equating to (says the Financial Times) a dividend yield of 1.8 per cent - lower than Microsoft, but higher than IBM.

The dividend payments will run to around $2.5 billion dollars per quarter.

It is understood that with the dividend payments and share repurchase programme combined, Apple will be spending around $45 billion of its $100 billion cash reserves over the next three years. However, with its products selling in greater quantities each quarter, it is likely that cash pot will be growing rather than shrinking.

Speaking during an open conference call, chief operating officer Tim Cook was excited by the prospect, both technically and financially, of the firm's future products, but wouldn't be drawn on what they were.

"We do actually like to announce new products," he said. "We just don't like to do it during a conference call.

"I am extremely confident in what we have coming up in the pipeline. And I think our customers will be incredibly pleased at what we have coming out."

Peter Oppenheimer, Apple’s CFO, reiterated the point. "We have a lot to say about that... just not today."

What do you think? Is Apple's reinvestment in itself a good idea? Let us know in the comments below...