The media is making a big deal out of Apple ($AAPL) $110 billion share buy back program. Some experts are saying that Tim Cook is using financial engineering to prop up AAPL's share price instead of investing in R&D.
Fact 1: $AAPL makes close to $100 billion a year in net income and free cash flow
Fact 2 $AAPL has bought back $90 billion worth of shares back in 2018, 2021, 2022 and 2023. So, this new buy back is not out of the ordinary
Since $AAPL started to buy back shares in 2012, it has continued to increase its R&D expenditure every single year. So, this share buyback is a way to reward shareholders (in a tax free way) while AAPL continues to invest in its long term growth
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