Apple Runaway Success Story or Over Priced?

March 19, 2012

I was listening to NPR while running some errands this evening, and they had several stories about Apple. They deal with Apple’s recent announcement that they will be paying dividends to Apple stock holders soon, for the first time in over 10 years. About $2.65 is expected to be paid per-share.

Apple will also begin buying back up to $5 billion in stock a year.

Part of this decision is because Apple is sitting on a huge amount of money right now, over $100 billion, and paying out dividends has been a topic of discussion, as well as contention, among Apple stockholders for sometime now.

Last year Apple was making $1 billion profit each week for at least 3 months.

While this is a ton of money, Apple really did hit a home run with the iPad and iPhone. You can not deny their success and in many ways it offers a pretty slick interface/toy. I can appreciate their laptops too, the paper like screen on a Macbook air is sweet!

Also, given that OSX is Unixy, I think it ends up being a pretty solid operating system in many regards. And, I have fond memories of that little green screen Apple II that I used to play with when I was a kid.

Having said that, I have always thought that Apple’s were overpriced and have rolled my eyes as more than a few colleagues get caught up with Apple Fever, buying a new first-generation iWhatever as soon as it comes out.

Given that they are sitting on this boat-load of money and, at least periodically, raking in a cool billion in profit a week, I think this is a provides a pretty good indication that they are indeed overpriced and gigging their customers. So, my vote is over-priced, and I guess a success, the two are not mutually exclusive…


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