Apple has recently made a significant announcement regarding its buyback plans in the United States. The company’s board has given the green light for an additional $110 billion in share repurchases, marking the largest buyback ever announced by Apple. With the announcement, the maker of iPhones tops its own record for largest buyback value announced in the US.
After the announcement, on Friday (May 3), Apple’s share price jumped up by 6 percent. The market value of the company has reached 160 billion dollars.
The share price increased by 1 dollar 53 cents in the quarter under discussion. Where the spec was 1 dollar 50 cents. It is expected that they may declare a dividend of 25 cents per share, increasing by 4 percent.
Company sales, profits and loss in Q1
US technology company Apple Inc. has sold more products than expected in the first quarter of this year.
They have already predicted a return to growth in the current quarter. As a result, there is hope to overcome the sluggish situation. This caused a big rise in the share price of the US company.
In the first quarter of 2024 (January to March), Apple’s revenue was 90.8 billion dollars beating the forecast which was 90.3 billion dollars.
Meanwhile, Apple’s profits have been higher than Wall Street anticipated. Not only that, they announced the largest stock buyback in US history ($110 billion) – coming as an optimistic news Investors.
Now they can see the face of profit. Because the business of the iPhone maker has been slow for a long time.
iPhones sales declined 10% with the drop suggestsing weak demand for Apple’s iPhone 15 lineup, which came out in September.
The company reported $45.96 billion in iPhone sales for the three months ended March 31, slightly under projected estimates. Apple’s net income from the quarter slid to $23.6 billion, down slightly from the same quarter a year ago. The company also announced Mac sales increased 4% to $7.5 billion and a services revenue of $23.9 billion, beating analyst estimates. In addition, Apple reported iPad revenue of $5.6 billion, down 17% year over year.
Problems in China
Apple’s smartphone market has seen a slowdown in recent times. Many of them are stuck in China.
However, Tim Cook (CEO of apple) said on the call, iPhone sales are up in mainland China in the latest quarter. Market research firm IDC said Apple’s smartphone shipments tumbled a stunning 10% globally in the first quarter of this year.
In the meantime, the South Korean technology giant Samsung has topped the iPhone sales, including Huawei and Xiaomi, which have also made notable gains as consumers who once would have considered Apple are now turning to national brands in China.
“It’s a steep drop for Apple, but if you think of where we have been in the past four years, Apple has probably been the most resilient brand, overcoming supply chain issues and macro challenges, more than other brands,” said Nabila Popal, research director at IDC, told CNN at the time. However, Cook said on Thursday the company set revenue records in more than a dozen regions, including the Middle East, Canada, Spain and Turkey.
The company’s stock price has slumped more than 8% in 2024 to less than $170 a share after reaching nearly $200 per share at different points in the past year. The company has overcome hurdles and threats many times before to reach a market capitalization of $2.6 trillion, making it one of the largest and most powerful companies in the world.
Increase in sales of other products
All in all, Apple was under pressure. Again they started to turn around. The US company is expecting an increase in product sales in the current quarter. They say their iPads and business services will grow. Apple reported iPad revenue of $5.6 billion, down 17% year over year. The news comes a few days before the company is set to host a press event where it’s largely expected to introduce updates to its iPad lineup and related accessories. However, the company said it expects it iPad business and services to grow in double digits for the June quarter.
Apple’s wearables, home and accessories category, which includes AirPods, the Apple Watch and Vision Pro, saw revenue of $7.91 billion, compared to an estimate of $8.28 billion, despite the launch of the Vision Pro. This marks the first earnings report since the launch of its biggest new product in years, its $3,499 mixed reality Vision Pro headset. Apple spent billions of dollars in research and development on the device, according to a recent analysis. However, iPhone sales will decline.
All eyes on AI in future
Tim Cook conveyed his unwavering confidence in the possibilities of generative AI. “We are actively dedicating significant resources and eagerly look forward to revealing some incredibly exciting advancements to our esteemed customers soon,” he stated. Cook stressed Apple’s firm belief in the transformative potential and reliability of AI. Additionally, he underscored the unique advantages that distinguish Apple in this burgeoning era.
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