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Writer's picturemeowdini

Apple Announces Record Stock Buyback Despite Lower-Than-Expected Earnings

Updated: Jun 6

Apple reported mixed financial results for its first quarter ending March 31st, 2024. While the company announced a record $110 billion share buyback, its overall revenue and earnings fell short of expectations.


A hand holding an apple phone

Key Takeaways

  • Revenue: $90.8 billion, down 4% year-over-year

  • iPhone Sales: $45.96 billion, down 10% year-over-year (missing analyst estimates)

  • Net Income: $23.6 billion, down slightly year-over-year

  • Share Buyback: $110 billion, the largest in company history


Challenges

  • Weak iPhone demand, particularly for the iPhone 15 lineup

  • Slowdown in China's smartphone market

  • Uncertainty in the global economic climate


Bright Spots

  • Services revenue of $23.9 billion, exceeding analyst estimates

  • Mac sales increased 4% to $7.5 billion

  • Continued optimism about the future growth of iPad and Services sectors


Looking Ahead

  • Apple CEO Tim Cook teased upcoming announcements about the company's vision for generative AI.

  • The company expects double-digit growth for its iPad and Services areas in the next quarter.

  • Despite the launch of the high-end Vision Pro headset, the wearables, home, and accessories category fell short of revenue expectations.



Analyst Concerns

  • Recent analyst reports suggest production cuts for the Vision Pro headset, raising questions about its initial sales performance.


This earnings report highlights Apple's efforts to navigate a challenging market environment. While it faces headwinds in its core iPhone business, the company remains committed to innovation and growth in other areas like services and artificial intelligence.



Short description: Apple's mixed Q1 2024 results show a $110 billion share buyback, but revenue and earnings fell short. iPhone sales dropped, impacted by weak demand and China's market slowdown. However, services revenue hit $23.9 billion, and Mac sales grew. CEO Tim Cook hints at future AI announcements, expecting growth in iPad and Services next quarter. Concerns rise over Vision Pro headset production cuts.


Source: Reuters

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