Apple Beats Estimates, Shareholders Rewarded

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April 24 (Bloomberg) -- Bloomberg’s Julie Hyman reports on Apple earnings and Carl Icahn’s tweet on Apple’s buyback plan. She speaks with Betty Liu on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Shareholders.

Rex a bit of a reverse.

They have said previously they were not interested in the split in the ceo did save the size of the share buyback because that was increased to $90 billion.

He said it is a signal of the board and management team strong confidence in the future of apple.

He is playing this as a vote of confidence.

When you look at the stock split and effect of that, it will be the stock can be more widely held.

Less expensive for people to buy.

Many are saying that is pretty much a sure thing that apple is now included in the dow and that could have been one of the motivations behind this, the next phase for the company.

Another thing being talked about whether you're talking about the dividend or buyback or stock split is that it is a bridge to new products.

Everyone is anxiously awaiting the next big thing from apple.

Will it be a watch, next big inc.

From apple i'm a next-generation television?

We are not getting that until the fall.

This lets them fight their time, buy some goodwill, if you will.

-- bide their time.

Carl icahn tweeted of course.

He said agree completely with the increased buyback and extremely pleased with results.

As i said yesterday, least shocking reaction ever.

Believe we will also be happy when we see new products.

Exhibiting patience and optimism when it comes to those new products.

Break down the earnings numbers.

The earnings numbers were good, too.

Net income rose seven percent.

Sales up 7.4% -- 4.7%. the forecast for gross margin for the current quarter were above estimates or at least in line.

The standout number was the iphone sales number.

47 million shift.

The disappointment came from ipad.

Sales fell to 16.4 million.

Cook complained that -- compare that to the tough comparisons a year ago in the inventory issues.

Concerns that there are lots of cheaper tablets on the market.

There are a lot of cheaper smartphones out there on the market as well, particularly looking internationally and those sales hold up well.

The first quarter were china mobile sales.

Seems like they did so a lot of the iphones in china.

Thank you.

Julie hyman, senior markets correspondent.

And news for the e-cigarette industry.

For the first time electronic cigarettes and cigars will face regulatory oversight under a new proposal from the fda.

Megan hughes joins us with more.

What kind of state keeping is the fda going to want to hear it?

There is a lot of angst.

This is going to dramatically change the regulatory footprint.

Companies would have to pass a review in order to stay on the markets.

All kinds of research.

It would limit sales to minors.

A big concern -- concern for

This text has been automatically generated. It may not be 100% accurate.

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