Apple’s revenue for the quarter ending on March 30th saw a slight dip of 4% year-on-year, totaling $90.8 billion. Despite this, the figure exceeded analysts’ predictions of $90.1 billion. The company’s earnings report also revealed a 10% decrease in iPhone sales, amounting to $45.96 billion, compared to the same period last year. Wall Street had estimated sales of $46 billion for this quarter.
Surprisingly, Apple’s shares experienced an increase in after-hours trading, following the announcement of a record-breaking $110 billion stock buyback program, the largest in US history. This move was interpreted by some analysts as an effort to appease investors, who have seen Apple’s shares underperforming the market in recent months.
Looking ahead to the current quarter ending in June, CEO Tim Cook expects “low single digit” growth, as reported by Reuters. During an earnings call, Cook highlighted Apple’s plans to make “significant investments” in generative AI, aligning with similar strategies pursued by other tech giants like Amazon, Alphabet, Microsoft, and Meta. Cook emphasized the importance of AI as a key opportunity for Apple and expressed confidence in the company’s prospects in this domain.
Apple also made headlines this week with the announcement of eight small language models tailored for consumer devices. Addressing Apple’s performance in China, where demand has softened, Cook noted an 8.1% decline in sales to $16.37 billion, which was less severe than analysts had anticipated.
However, Apple faces regulatory hurdles in the US and Europe, including high-profile antitrust lawsuits. The US Department of Justice has accused the company of engaging in illegal conduct, while the EU has fined Apple for allegedly stifling competition from music streaming services like Spotify through App Store restrictions.
Despite these challenges, Apple’s share price has rebounded following the earnings report, with shares rising in after-hours trading. This positive response suggests investor confidence in Apple’s resilience amid regulatory scrutiny and market fluctuations.
