Apples cash pile had reached $137 billion in December 2012. Major shareholders, such as Carl Icahn, began to demand that Apple return some of its cash to its shareholders. Why might Apple have needed to hold on to so much cash in excess of what it needed to operate? Would you have recommended that Apple respond to and satisfy shareholders demands by distributing significant amounts of its cash? If so, what method(s) of returning cash would you have recommended, and why? Consider the following: Apples industry and its place in it What are the critical ingredients for success in this industry? Apples opportunities for growth What would a return of cash to shareholders signal about Apples opportunities for growth? Apples tax situation Dividends versus share repurchase