Apple's earnings are dropping and its shares are now trading below where they were in the summer of 2014.
That’s because Apple hasn’t been investing adequately in new technologies. It’s been coasting on global sales of iPhones and related products it periodically upgrades.
So what’s Apple’s strategy for turning this around? Apparently nothing. It just announced it’s spending $35 billion to buy back its shares of stock.
Over the past several years Apple has spent $117 billion buying back itself. Stock buybacks reduce the number of outstanding shares so each remaining share is worth more. But it’s a steroid with no lasting effect, because the remaining shares won’t hold their value unless Apple provides far more value to its consumers.
Meanwhile, Apple’s CEO, Tim Cook, raked in in $10.3 million in 2015, up from $9.2 million in 2014.
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