Tim Cook: Apple as Innovative as Ever
Tim Cook, Apple's (NASDAQ: AAPL) CEO, addressed Goldman Sach's (NYSE: GS) Tech Conference earlier Tuesday. Unfortunately for investors, Cook failed to announce any significant new measures such as increase of Apple's dividend or more share repurchases. He was also vague about the company's plans for new products.
Still, Cook offered some significant color about how Apple thinks about acquisitions, his outlook for the company, and Apple's plans with regards to its cash hoard.
On the first, Cook said that Apple has averaged about one acquisition every two months for the last several years. Though it may not make the flashiest acquisitions, Cook said it looks to acquire companies that have smart employees or valuable intellectual property. Above all, Cook said that Apple never plans to acquire a company just to increase revenue; rather, Apple wants to buy companies that it will help it create great products.
Interestingly, Cook said that Apple has considered buying “big” companies in the past, but that none of them passed Apple's test.
As for Cook's outlook on Apple, he was as bullish as ever. He proclaimed that despite rising competition, Apple still had the best tablet, smartphone and PC on the market. Cook emphasized that Apple's retail stores gave the company a competitive advantage, and he proclaimed that Apple remained at the center of innovation.
Cook addressed Greenlight's suggestion of issuing preferred shares, saying that Apple would consider it, but that Greenlight's lawsuit against the company was “silly” and a “waste of money.” Yet, he was insistent that Apple was still considering what to do with its cash.
Shares of Apple traded down two percent late on Tuesday, near $470.
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