While Apple's move to share more of its cash hoard was cheered by investors, it has done little to quell fears that the technology giant is losing the innovation game to rivals.
The company, which posted quarterly earnings and revenue that topped estimates Wednesday, announced plans to boost its stock buyback program, raise its dividend and split its stock 7-for-1, sending shares nearly 8 higher in the after-hours trading.
"Anyone can do financial engineering," said Trip Chowdhry, analyst at Global Equities Research. If anything, the move shows that Apple's board is aware of the fact that the company has lost billions in market share since Tim Cook took over in 2011, he said.
Apple shares have fallen 25 percent from their all-time high of $702 on September 19 2012. The stock last traded at $524.