Apple Recap: A Lawsuit, A Reaction, and the iPhone’s Good Showing
The news of a lawsuit against Apple (NASDAQ:AAPL) did not deter its investors from giving the company one of its better recent days as the stock rose 2.98 percent on Thursday to close at $468.25. Perhaps it’s got something to do with the expectation that this development may actually move Apple into some action. In any case, the development of this story over the next few days will prove interesting along with the movement of Apple’s share price. Here is a Cheat Sheet to the top Apple stories from the day:
Apple Has This To Say
Apple released a statement on Thursday afternoon, saying the company’s management and board were currently in active talks about returning cash to its shareholders. The iPhone maker specifically mentioned Greenlight Capital, the David Einhorn fund that filed a lawsuit against the company over its stock behavior earlier in the day. Apple said it would thoroughly evaluate Greenlight’s recommendation to issue some form of preferred stock. It also explained that the proposal in its AGM proxy was designed not to get rid of preferred stock completely, but give shareholders the option to vote on such a move.
“Contrary to Greenlight’s statements, adoption of Proposal #2 would not prevent the issuance of preferred stock,” the statement read. “Currently, Apple’s articles of incorporation provide for the issuance of ‘blank check’ preferred stock by the Board of Directors without shareholder approval. If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock…” (Read more)
What Does Einhorn Want?
David Einhorn’s Greenlight Capital fund sued Apple in an attempt to block the company from adopting a measure that would enable it to eliminate preferred stock. Einhorn is also hoping to start an investor revolt against the iPhone maker, saying the company needed to be more active in offering its shareholders more value for their investments. Apple has about $137.1 billion in cash, according to its latest earning report released in January, and according to Einhorn, that equates to about $145 per share. While Apple did announce the start of a dividend last year and also buys back shares, Einhorn said shareholders would like to receive preferred stock with a 4 percent yield… (Read more)
The iPhone Keeps Growing
Apple did receive some good news on the day. According to a new report, Apple continues to be the top U.S. smartphone manufacturer. The iPhone maker kept up its lead over Samsung (SSNLF.PK) in the fourth quarter of last year, in fact growing its share to 36.3 percent from 34.3 percent at the end of the September quarter, comScore said. Samsung also grew, moving up to 21 percent from 18.7 percent in the previous quarter. Both HTC and Google (NASDAQ:GOOG) unit Motorola, in third and fourth spots, respectively, saw their market shares decline. HTC fell from a 12 percent share in September to 10.2 percent, while Motorola edged down from 9.8 percent to 9.1 percent. LG, in fifth place, moved up from 6.6 percent to 7.1 percent. Meanwhile, Google’s Android continued its hold on the smartphone operating system portion of the market… (Read more)