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Live Blog: Apple Shareholder Meeting

Tim Cook
Source: hatian0905 | Wikipedia
Tim Cook

Apple CEO Tim Cook said the company is "seriously considering" returning cash to shareholders Wednesday at the company's annual shareholder in Cupertino, Ca.

The iPhone maker has recently come under pressure to distribute some of its $137 billion in excess cash to investors, but the company has not yet revealed any specific details about its cash strategy.

(Read More: Court Rules in Favor of Einhorn in Apple Dispute )

Activist shareholder David Einhorn has publicly pressed Apple to figure out a way to increase shareholder value. He even filed a lawsuit against Apple as part of his larger scheme to get the company to release some of its cash load.

While Cook said that he still thinks Einhorn's lawsuit is silly, he added that the company is taking the issue of boosting shareholder value seriously.

(Read More: Apple's Cook Calls Einhorn Lawsuit 'Silly Sideshow' )

"I strongly believe it was a silly sideshow, regardless of how the judge ruled .... I don't think the issue of returning cash to shareholders is silly — we're seriously considering it."

Live Blog

David Einhorn, president and co-founder of Greenlight Capital
Scott Eelis | Bloomberg | Getty Images
David Einhorn, president and co-founder of Greenlight Capital

CNBC's technology correspondent Jon Fortt reported live from the Apple shareholder meeting. Read his updates below.

1:04 P.M.: Cook: "I strongly believe it was a silly sideshow, regardless of how the judge ruled .... I don't think the issue of returning cash to shareholders is silly -- we're seriously considering it."

(Read More: Court Rules in Favor of Einhorn in Apple Dispute )

Cook: "iPad mini cannibalizing: If we don't cannibalize, someone else will. We take a long view."

12:57 P.M.: Q: Do you still think David Einhorn's lawsuit is silly? Cook: "I absolutely do."

(Read More: Apple's Cook Calls Einhorn Lawsuit 'Silly Sideshow' )

12:56 P.M.: Shareholder complaint: no bathroom in 3rd street promenade Apple Store (seriously).

12:55 P.M.: Cook on new campus: "We plan to bulldoze all the buildings on the new site, build one 2.8 million sq. foot building that will be the most collaborative work environment; I project that we will move in, in 2016."

(Read More: Silicon Valley Is in a Building Frenzy )

Cook: Today, 80 percent of the site is covered in asphalt and concrete; when we're finished only 20 percent will.

Cook: Steve put a lot of work into this before he passed away and we're continuing that .... We think we can get a third of our employees there by bus .... We hope to break ground later this year. (Click to see what Apple's new headquarters will look like )

Cook on supply chain: Our work on supply chain was not in response to anything; we were doing it before the press attention. ... When we find things we fix things, and when we find things we report things. ... Over 200,000 people are taking advantage of college courses we started on our work sites; we have trained more than one million workers on their rights.

Apple security contractor SIS: Cook says he doesn't know about this specific contractor.

12:47 P.M.: First question: What are you going to do about Android and Samsung gaining market share?

Cook: We're not constraining our investment in R&D by a desire to grow a cash pile. We stay very focused and work on a few things. ... The real market share numbers are hard to come by. ... It is clear that Android is on a lot of phones ... it is probably true that iOS is on a lot more tablets .... Success is not making the most. ... Where market share is important (is in being big enough to attract an ecosystem) .... We're really aware of the competition as well. "We don't have our heads stuck up ... stuck in the sand. .... There's a button or two we could press to make the most .... That would not be good for Apple."

12:41 P.M.: Meeting adjourned, Q&A begins. Cook begins talking about the company's stock price:

"I don't like it either," he said. "Neither does the board or management — where the stock trades now vs a few months ago -- but we're focused on the long term."

Cook says Apple has some great stuff coming. He now is recapping the year in product announcements.

"It has been an incredible year of innovation," at Apple, he said.

Last fiscal year "We grew by about $48 billion" more than Google, Microsoft, Dell, HP, RIM, Nokia combined," he said.

Touts retail stores as the face of Apple.

Customers are sending more than 2 billion messages per day.

"We are in markets that are fast growing," Cook said referring to smartphones and tablets.

Apple sales in China: $24 billion: "This is larger than any technology company in the United States that we're aware of."

"Obviously we're looking at new categories -- we don't talk about them, but we're looking at them," Cook said.

Over 50 percent of iPad buyers in China and Brazil are first-time Apple customers; Cook confident of halo effect.

12:29 P.M.: Preliminary results: (Click here to view Proxy Statement)

—All directors reelected

—Accounting firm approved

—Say on pay approved

—Executive stock retention fails

—Human Rights committee fails

12:24 P.M.: Proposal to require top executives to hold 33 percent of stock until retirement: no comment or questions.

Proposal to require Human Rights committee on Apple board: no comment or questions.

All proposals have been introduced. The polls are now open. People are marking and submitting their ballots.

12:19 P.M.: Just a side note, Time Cook will be answering shareholders' questions at the end of the meeting.

12:19 P.M.: Ernst & Young item gets a motion for approval without comment.

Executive compensation gets a motion for approval without comment.

Getty Images

12:18 P.M.: Shareholders in overflow rooms will submit questions via iPad; Sewell requests that question.

Election of board members:

There is one comment about Al Gore, saying he should not be reelected. He is saying his sale of Current TV should disqualify him from serving on any "decent" company's board.

Sewell mentions that because of a court order, Proposal No. 2 will not come up for a vote.

CalPERS representative Anne Simpson takes the mic to support Apple's position and speak against Einhorn. CalPERS says had it come to a vote, Proposal No. 2 would have won based on its polling.

Nathan Cummings foundation also speaks out in favor of Proposal No. 2 and against Einhorn's position. (This is interesting because CalPERS and this foundation are typically locking horns with management. He says Einhorn is not here today.)

A shareholder from London speaks up to say the proposals in #2 should have been separated in the first place.

12:07 P.M.: Sewell is outlining the voting process; lots of shareholder hands are up for ballots.

12:06 P.M.: Sewell: Quorum is present, meeting is properly constituted.

12:04 P.M: Bruce Sewell has taken over. He is calling the formal part of the meeting to order.

12:03 P.M.: Cook introduces Al Gore as "The inventor of the Internet" for laughs.

12:02 P.M.: Tim Cook has started the meeting, he is introducing the board.

10:41 A.M.: About a dozen shareholders in line, Apple giving them coffee and donuts.

Editor's Note: Apple is hosting its annual shareholder meeting today in Cupertino, Ca. and the big question looming over the event is if CEO Tim Cook will discuss what the company's plans are for it's nearly $140 billion cash pile.

Historically, the two-hour meeting is pretty straightforward, but this year Apple may feel pressure to shed more light on its cash strategy because of activist shareholder David Einhorn's public shaming of Apple for not distributing more cash to shareholders.

(Read More: Court Rules in Favor of Einhorn in Apple Dispute )

Einhorn, who is president of the hedge fund Greenlight Capital, recently sued Apple over a proposal in its proxy and was successful in blocking shareholders from voting on the measure today. Einhorn's aim is to get Apple to unlock more value to investors.

Chip Cobb, senior vice president at BMT Asset Management, said that while he is unsure if Apple will disclose any increase in dividend today, he does think that Einhorn's activism has pressured Apple to start giving some answers.

"Einhorn, he's raised the bar a little bit on putting the pressure on Apple. I wouldn't expect a lot at this meeting today, but it's certainly a possibility that you're going to see the dividend increase beyond that, roughly 2.4 percent. It absolutely has become a value play," Cobb said.

CNBC's technology correspondent Jon Fortt is reporting live from the Apple shareholder meeting and will be sending live updates, including any news about its cash strategy.

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