Apple could announce $90 billion share buyback, says analyst

Apple will hold its next earnings call on April 28.

What you need to know

Apple is hosting its next earnings call on April 28.
New insight from one analyst says that Apple may announce another massive buyback program.
Apple is flush with cash, sitting on more than $200 billion.

New insight ahead of Apple’s next earnings call suggests the company may announce another mammoth share buyback program to the tune of $90 billion.

Comments from Citigroup Inc’s Jim Suva reported by Bloomberg suggest Apple could choose to announce more buybacks and even an increase in its dividend:

In a note published Tuesday, Suva estimated that the iPhone maker might announce a buyback of $80 billion to $90 billion, while also increasing its dividend by 5% to 10%. All eyes will be on its second-quarter results due after the closing bell on April 28.

The report notes that companies including Apple, Microsoft, and Alphabet are looking for ways to redeploy its spare cash, with Apple sitting on more than $200 billion.

Apple has bought back some $275 billion of its own shares including $20 billion in the last quarter.

Apple will host its next earnings call on April 28, where the company will likely reflect on the continued success of its best iPhone, the iPhone 13, while possibly offering some insight on the initial reception of its iPhone SE.

Recent reports indicate that iPhone SE demand has not materialized as expected and that Apple may ship far fewer units than first thought.

Suva went on to note that Apple’s stock price might decline because of emerging reports that Apple is facing production difficulties owing to COVID-19 restrictions that have brought production in Shanghai and Kunshan to a halt.