We probably won't see buybacks and dividends any time soon. Apple remembers the days when they almost went bankrupt and that has set the tone for how they manage financially. They are very conservative with their cash.

They have made it very clear that they are reserving that cash for a big acquisition. IMHO that means that they are waiting for the moment when someone innovates in a way that threatens them and they can bring the talent and assets aboard. Like the Google process, except you pay with cash.