Apple (NASDAQ:AAPL) wrapped up its annual shareholder meeting on Thursday, at the company’s Cupertino, Calif., headquarters. With the company’s stock not far off last week’s all time high of $526.29, profitability and performance in the past year are hardly a worry. Analysts were looking for CEO Tim Cook to potentially discuss two key issues with shareholders:
1. Foxconn and labor conditions at Chinese factories that assemble Apple products such as iPhones and iPads. Apple’s reputation has been bruised as a result of increased scrutiny of its manufacturing partners by media and human rights groups.
2. What to do with the cash? Apple is sitting on close to $98 billion in cash and investments. In the past, the company has drawn on this cash hoard for competitive advantage, such as prepaying suppliers in order to secure large quantities of key components, and it recently paid between $400 million and $500 million to buy Anobit, a flash chip specialist. However, $98 billion is a lot of cash and shareholders are looking for a possible dividend.
Of course, everyone is always hoping for news on new products. Anticipation is high for the iPad 3, iPhone 5, possible new additions to the MacBook Air lineup, a rumored mini iPad and, of course, the iTV (Apple’s expected foray into the so-called Smart TV market). While it’s unlikely that Cook would spill the beans on any of these products (especially after board member Al Gore let slip some insider info about the iPhone 4s release last fall), there’s always hope that he might drop some hints.
And what were the results?
Shareholders voted to require directors to win a majority vote before being elected to the board; those who don’t will be required to voluntarily resign their position. Current Apple board members (each of whom received over 80% in voting today) remain unchanged: Chairman Arthur D. Levinson, CEO Tim Cook, William Campbell, Bob Iger, Millard Drexler, Al Gore, Ronald Sugar, and Andrea Jung.
On the two questions:
1. The labor conditions and Foxconn issues weren’t raised.
2. Regarding Apple’s cash hoard,
AppleInsider quotes Cook as saying, “My message there is that the board and the management are thinking about this very deeply… and we will do what we think is in the best interest of shareholders.” In other words, nothing new on that front.
There was no comment about new products, even after a shareholder baited Cook with a question about whether he should return a recently purchased TV set. Confirmation of new Apple hardware will have to wait, with March 7 pegged as the date the iPad 3 will be formally announced.
Cook did speak to Apple’s relationship with Twitter (which is closely integrated into its iOS 5 mobile platform) and Facebook (which has been conspicuously absent), mentioning that he would like to work more closely with Facebook. He referred to Mark Zuckerberg’s social media site as a “friend” to Apple. He also highlighted the emphasis Apple has been putting on education, through iBooks Author, discounts to institutions and internships on its campus.
As of this writing, Brad Moon did not hold a position in any of the aforementioned stocks.
