Carl Icahn and son say Apple will still introduce TV, car: CNBC

Tue May 19, 2015 2:30pm EDT
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(Reuters) - Billionaire activist investor Carl Icahn and Brett Icahn, his son and portfolio manager, on Tuesday stuck to their views that Apple Inc AAPL.O would introduce a television set and a car.

The elder Icahn, in an interview with cable business channel CNBC, also said his disagreement with the technology giant was over the company not doing bigger share buybacks.

"I believe they will do a TV," Icahn said, added that "the one thing that I disagree with the company on is not buying a great deal more stock."

Brett Icahn said: "We believe they're going to do a car."

Carl Icahn owned about 53 million Apple shares at the end of the first quarter, according to a Securities and Exchange Commission filing.

In an open letter to Apple Chief Executive Officer Tim Cook on his website on Monday, Icahn said Apple should be trading at $240, nearly double its current price, and he believed the company was poised to enter the television market by 2016 and the automobile market by 2020.

The Wall Street Journal, citing sources familiar with the matter, reported Monday that Apple had scrapped plans to introduce an ultra-high-definition television set more than a year ago.

Icahn portfolio manager David Schechter said: "It is dangerous to assume that they’re not going to introduce new products in new categories in the future."

Icahn, who has pushed Apple to boost buybacks since announcing his stake in the company in August 2013, said his prodding had helped the company. Apple boosted its repurchase program in April to $140 billion from $90 billion announced last year.   Continued...

An employee cleans inside the Apple flagship store on 5th Avenue in New York April 22, 2015. The leaf on the Apple logo was tinted green after midnight in honor of Earth Day at Apple's 24hr store. REUTERS/Brendan McDermid