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The Apple Store in Hangzhou, China. Photo: Zhang Peng/LightRocket via Getty Images

Apple is the most successful and profitable luxury consumer-goods company that the world has ever seen. Its profit margins are stratospheric, its earnings per share continue to reach new all-time highs, and it has no real competitor in terms of being the high-end brand of choice in categories from personal computers to phones to digital watches.

Why it matters: It tops the list of retailers that any real estate developer wants if they're trying to create a luxury-shopping destination, and like Louis Vuitton, it never discounts.

Apple has extended its reach to hundreds of millions of customers around the world who would never buy Gucci or Prada. Still, luxury brands, by their nature, never reach everybody. Most people will end up opting for the cheaper, more utilitarian rival. At some point, any luxury brand will be selling mostly to repeat customers. Apple has definitely reached that point.

  • Apple's repeat customers are incredibly profitable and price-insensitive — which raises the ultimate luxury problem of what Apple should do with all its money. Even after spending more than a billion dollars a month on research and development, Apple generates vastly more cash than it can spend.

The solution: Stock buybacks, which return those profits to Apple's shareholders and help to keep Apple's per-share earnings on an upward trajectory. Buybacks are not an attempt to time the market and buy when shares are cheap; they're better thought of as a particularly flexible and tax-efficient form of dividend.

  • Not all public companies can, should or must grow. The magic of stock buybacks is that they can support the stock price even if the business doesn't grow at all. The rise of Apple's annual buyback budget is simply a sign that the company has matured.
Expand chart
Adapted from a chart by Above Avalon's Neil Cybart; Chart: Axios Visuals

The bottom line: If the job of a CEO is to generate profits that can be returned to shareholders, then Tim Cook has been vastly more successful at Apple than Steve Jobs was. That doesn't mean the end of the age of Apple. It just means Apple has achieved its potential.

Go deeper: Apple is not China

Go deeper

1 hour ago - World

Army to award Purple Hearts to troops injured in Iran missile attack

Damage at Ain al-Asad military airbase housing U.S. and other foreign troops in the western Iraqi province of Anbar in January 2020. Photo: Ayman Henna/AFP via Getty Images

The Army has approved 39 more Purple Hearts for U.S. soldiers wounded in an Iranian military ballistic missile attack on an Iraq base in January 2020, the Army Times first reported Wednesday.

Why it matters: Most of these soldiers sustained brain injuries, per the Army Times. Then-President Trump dismissed their injuries at the time as "headaches" and "not very serious," sparking backlash from some veterans groups.

Scoop: U.S. begins denying Afghan immigrants

Afghan refugees on a bus bound for temporary housing after arriving in Greece. Photo: Byron Smith/Getty Images

The Biden administration has begun issuing denials to Afghans seeking to emigrate to the United States through the humanitarian parole process, after a system that typically processes 2,000 applications annually has been flooded with more than 30,000.

Why it matters: Afghans face steeper odds and longer processes for escaping to the U.S., despite the earlier sweeping efforts by the Biden administration to assist its allies. Immigration lawyers and advocacy groups say the government has set untenable barriers to a safe haven in the U.S.

4 hours ago - Politics & Policy

Dems invoke Robert Byrd to sell Manchin on Senate rules changes

Photo illustration: Shoshana Gordon/Axios. Photos: Diana Walker, Chip Somodevilla/Getty Images

A small group of Senate Democrats is privately invoking the legacy of late West Virginia Sen. Robert Byrd in an effort to sway Sen. Joe Manchin (D-W.Va.) to support their plans to change the chamber's rules, Axios has learned.

Why it matters: Manchin — who holds Byrd's Senate seat — has often referenced his predecessor's strong moral conviction and insistence on preserving the Senate as an institution, as justification for some of his tough positions.