Apple to return $45 bn to shareholders

Apple has announced a plan to return $45 billion to shareholders over

three years. As of next week, the company will execute $10 billion of

that plan.

By early last year, Apple's cash balance had built to a point beyond

what the company needed to run its business and maintain flexibility to

take advantage of strategic opportunities, so Apple announced a plan to

return $45 billion to shareholders over three years.

The company find themselves in a fortunate position of continuing to

generate large amounts of cash, including $23 billion in cash flow from

operations in the last quarter alone.

Apple's management team and Board of Directors have been in active

discussions about returning additional cash to shareholders. As part of

the review, the company will thoroughly evaluate Greenlight Capital's

current proposal to issue some form of preferred stock. The company has

welcomed Greenlight's views and the views of all of our shareholders.

As a part of our efforts to further enhance corporate governance and

serve our shareholders' best interests, Proposal #2 in our proxy

includes some recommended changes to our articles of incorporation.

These changes were recommended independently of Greenlight's proposal

and would not preclude Apple from adopting their concept.

Contrary to Greenlight's statements, adoption of Proposal #2 would not

prevent the issuance of preferred stock. Currently, Apple's articles of

incorporation provide for the issuance of "blank check" preferred stock

by the Board of Directors without shareholder approval. If Proposal #2

is adopted, our shareholders would have the right to approve the

issuance of preferred stock. As such, Proposal #2 has the support of

many of our shareholders.

The company is committed to having an ongoing dialogue with its

shareholders to get perspectives around return of capital and driving

shareholder value.