Icahn: Apple management 'seems to be doing the right thing'

(Reuters) - Hedge fund billionaire Carl Icahn told Reuters on Tuesday that Apple Inc's management "seems to be doing the right thing in running the business but this is a financial issue," regarding a larger stock buyback by the company. In a telephone interview, Icahn said he believes investors are underestimating Chief Executive Tim Cook's message that Apple will come out with products in entirely new categories this year. "I think it will be huger than people think," Icahn said. "They haven't done this in four years and the last one they did was something called the iPad, and let's not forget that Apple has a huge cult following." Icahn said "Apple shares are very cheap. They are going at 6-7 times earnings … It's not like we are holding something that is trading at 100 times earnings." Icahn has prodded Apple to increase its share buyback program. (Reporting By Jennifer Ablan)