Technology giant Apple has bowed to investor pressure to return more of its substantial cash pile to investors, signalling a change in the perception of the company and a major shift from the strategy of founder Steve Jobs.
Prior to his death in 2011, Mr Jobs resisted calls to start returning Apple's huge cash pile to investors, insisting that the company retain capital for reinvestment. But the change that began with dividend payments last year accelerated this week with the board pledging to return $100bn (£65bn) by the end of 2015 through more dividends and share buy-backs.
But does this signal the end of Apple as an innovative force in the technology world and its transformation into a staid income play? Probably not. But it may just satisfy investors who have been grumbling about the cash pile and divert attention from the gap in Apple's hardware release pipeline, which looks like stretching out into the third quarter of this year at the earliest.
While iPad mini sales have proved strong, boosting overall tablet sales by 65 per cent, the margin is lower than on the original iPad. In addition, iPhone sales growth slowed to a trickle, up 6 per cent in the quarter, and is predicted to slow further during the current three-month period. Chief executive Tim Cook promised a sparkling roster of new product releases later this year and through 2014, with rumours ranging from wearable technology such as a watch, to a cheaper iPhone or the long-mooted Apple TV.
