Investor Carl Icahn sank more than $500 million into Apple on Tuesday after the company’s stock plunged some 8 per cent following disappointing sales numbers issued by the company in Monday’s earnings report.
Icahn’s latest purchase brings his Apple holdings to over $4 billion, or just under 1 per cent of the company, giving him increasing leverage in his quest to pressure the board to up its share buyback program.
“Just bought 500 mln more $AAPL shares,” the fabled corporate raider tweeted on Tuesday. Icahn has repeatedly called for Apple to introduce new product categories this year and was encouraged by comments from Apple CEO Tim Cook which appeared to confirm for the first that the company would have some big launches before the year is out.
“We’re working on things that are things that you see today, but we’re working things that... you can’t see today,” Cook said in a conference call to discuss the company’s earnings.
Analysts and investors have been urging the company to develop new product categories that could jump start earnings in the same way that the iPhone did in 2007, and the iPad in 2010.
Apple has not introduced any major new products since the iPad, and is expected to launch a new television device, or a wearable computer in 2014. The company is also said to be working on technologies that would its iPhones into mobile payment devices.