The Financial Times’s tech columnist Richard Waters this evening offers up a viewpoint on a heap of recent talk of Apple (AAPL) establishing a dividend: The dividend is merely an indication of the general anxiety about whether Apple can keep adding billions of revenue per quarter to keep up its tremendous growth.
Apple’s rise into the “$500 billion club” as some have termed its recent market cap explosion, has “induced vertigo” among investors, writes Waters.
“Wall Street is looking for fresh reasons � like a dividend � to convince itself that there are new reasons to keep buying.”
Waters goes through the reasons for Apple’s amazing growth. It is a handset company, with most of its revenue coming from the iPhone, but it holds only a tiny share of the mobile market, just 8%. That leaves plenty of upside. The worry is that subsidies will melt away for phones, harming the iPhone’s pricing and, therefore, its profit.
His conclusion: “Finding big new markets to conquer will become increasingly important.”
Apple shares today closed up $7.03, or 1.3%, at $542.44.
Fin
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