Apple CEO Tim Cook awarded stocks worth $58 million

29 Aug 2015 | Author: | No comments yet »

APPLE TAKES WASHINGTON.

It is all the time a great signal when a enterprise’ leaders select to not promote any shares they personal. Apple (ticker: AAPL) got more than half its revenue growth from China in the most recent quarter, so the company is something of a bellwether when it comes to that country. With a breakdown in China’s growth, chaos in its stock market, and confusion about its monetary policy, many wanted to know what Apple was seeing in its business there. “We have continued to experience strong growth for our business in China through July and August,” said Cook, as conveyed by CNBC’s Jim Cramer, who had e-mailed Cook Sunday night to ask him how things were going. But since taking the helm, Cook has imbued the iPhone giant’s Washington operation with a unique, if quiet, style that’s delivering dividends for the company, Tony reports. When an government buys or holds shares, it means he has a private stake in constructing shareholder worth and that he believes shares will respect sooner or later.

Cook’s remarks, communicated on CNBC before the market opened on Monday, preceded a deep and unsettling plunge of 7% in the major indexes immediately after the opening bell. Prepare dinner, together with Eddy Cue, Apple’s senior vice chairman of Web, software program, and providers, every acquired 560,000 and 350,000 restricted inventory models, respectively, this week.

After a swift decline of 13% in Apple shares to below $100, accompanied by startling double-digit declines in many other major names, the stock market rallied, and while it ended the day down, the carnage was perhaps not as bad as it could have been. The event is expected to focus on an iPhone 6s and 6s Plus, but more importantly a completely revamped Apple TV — featuring Siri support, as well as an A8 processor, a touchpad remote, and a unique App Store. Giving an update on the quarter’s business is a highly unusual move for any company, but especially for Apple, whose late co-founder, Steve Jobs, was not known for offering up ready commentary. In another unusual move, Apple CEO Tim Cook on Monday sent an email to CNBC’s Jim Cramer, looking to pacify concerns investors might have about economic troubles in China. That bit of heroism is emblematic of what has been Cook’s emerging style since he took the helm of Apple in 2011 shortly before Jobs’ death, an approach that’s diplomatic, conciliatory, and open—very different from the showman and visionary who preceded him.

THE FTC’S TECH ENDEAVORS — With actions against Apple, Google, Facebook, Snapchat and others, it’s no secret that the FTC has been keeping tabs on the tech world. Whereas a big portion of those shares have been withheld by Apple to adjust to statutory tax withholding necessities, the 2 executives have been nonetheless left with an excellent chunk of Apple inventory. The agency is making the case that its existing consumer protection and privacy authorities apply to a variety of digital issues, which only becomes more important as new apps and Internet services grow.

As Bureau of Consumer Protection Director Jessica Rich told Nancy in a recent interview, it’s led to some changes in operations, too. “The explosion in those types of products and services, and the fact that everyone carries a mobile phone withthem everywhere they go now, changes the way we do our work,” she said. — ON PRIVACY IN THE FACEBOOK ERA: “I’ve worked on privacy since 1998, and at that time there was virtually no attention to privacy out in the world. … In some ways, the focus on privacy has shifted enormously in a positive direction. A multitude of next-generation iPhone rumors emerged this week, apparently backing earlier claims about the devices. iOS code and a parts leak, for example, hinted that the devices will indeed get Force Touch controls. And it exhibits that Prepare dinner is placing his cash the place his mouth is, as the corporate has strongly emphasised share repurchases over dividends in its capital return program. Another report claimed that the phones will have 4K video and front-facing flash, and two others showed supposed boxes, including one hinting that Apple will stick to 16 gigabytes of storage on base models.

There are companies that make privacy, whether you buy it or not, a brand.” LENOVO IN ADVOCATES’ CROSSHAIRS: Now that a federal court has backed the FTC’s authority to pursue data privacy cases, cybersecurity advocates hope the agency will make an example out of Lenovo. As Buffett says within the Berkshire Hathaway proprietor’s guide, “We eat our personal cooking.” After Prepare dinner’s newest Apple inventory award, he now owns about 1.17 million shares, value about $129 million. They want the computer maker punished for installing bloatware on its products that caused security problems for consumers, Pro Cybersecurity’s David Perera reports. TODAY: DoD UNVEILS LATEST EFFORT IN SILICON VALLEY — Defense Secretary Ash Carter and a handful of lawmakers are heading to Silicon Valley today to announce a new economic initiative. The $171 million project, led by a consortium called the FlexTech Alliance, will be a San Jose-based manufacturing institute devoted to developing new flexible or bendable electronics.

And through it all, investors have been handsomely paid to wait, as they say, receiving $2.08 annually for every share they own in dividends, a decent 1.8% yield. The military envisions the consortium developing new technologies that could be used by the military for everything from new health monitors for veterans to new road and bridge sensors for troops. Coming on a late summer day, while half of the investors were probably in the Hamptons and talking heads were wailing about the latest fears of market contagion, Cook’s disclosure was an odd concession to the feckless way the investing public lurches from one panic to the next when it has nothing better to do. The consortium is bringing together manufacturers such as Apple, Qualcomm and Applied Materials with commercial developers and customers, including Boeing, General Motors and the Cleveland Clinic, to help develop new flexible technologies. Whereas Apple inventory has rebounded from pulling again to $95 on Monday, it is nonetheless buying and selling properly under a 52-week excessive of $135 achieved earlier this yr.

The main obstacle is thought to be Apple’a insistence on keeping the price to about $40 a month, lower than media companies are allegedly willing to accept. The shares, trading at nine times projected earnings after subtracting Apple’s $156 billion in net cash and investments, are hardly demanding; in fact, they already discount substantial risk.

FCC’S OPPORTUNITY ON RETRANS — The FCC is facing a deadline next Friday to reexamine when it can step into contract disputes between broadcasters and pay-TV providers. The Securities and Exchange Commission has a rule called Regulation Fair Disclosure, or Reg FD, which says material information is to be broadly disseminated to the public. This week’s spat between DISH and Sinclair Broadcast Group offered a backdrop for how the commission might see its role changing to decide when parties are acting in bad faith during contract disputes, Brooks reports.

TEN TELECOMS GRAB CAF CASH: Ten telecommunications carriers announced plans Thursday to pocket $1.5 billion in annual federal subsidies designed to push broadband deeper into rural America, the FCC said last night. Those who have managed companies under Reg FD generally implement a so-called quiet period 15 days before the end of a fiscal quarter, when they say nothing to anyone. Verizon also said it would take funds to serve parts of California and Texas on a conditional basis, since it’s in the process of selling off its wireline assets in those states. New restrictions on altitude and flying over private property would havea devastating effect on the fledgling drone industry and disrupt the rulemaking process underway at the FAA, opponents say. “[It] maylook like a privacy bill, but it would open the door to a new class of frivolous lawsuits in California and create inconsistencies in federal law,” CEA President Gary Shapiro and AUVSI President Brian Wynne said in a statement Thursday after the state Senate approved the measure. “We hope Governor Brown will recognize the overreach of the Legislature and allow this flourishing industry to succeed and thrive in California.”

The issue isn’t impropriety, but rather how much of a company’s time and focus should be devoted to pandering to the demands of investors already richly rewarded by a company fulfilling its mandate to invent the future. Having demonstrated conciliation in the face of those demands, it’s perhaps not surprising he would now bend to the anguished cries of investors to protect the stock. No one gets a free pass for putting up their capital, and a nod from Cook or anyone else seems to set a dangerous precedent of giving investors whatever they beg for next, whether or not they’re entitled. In time, under Cook’s able stewardship, Apple will come out all right, its assets will appreciate in value, and the stock price will follow, as it should.

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