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Apple Announces Largest-Ever $110 Billion Share Buyback As iPhone Sales Drop
4 mai 2024 à 00:10
Apple reported fiscal second-quarter earnings that topped estimates, despite a 10% drop in iPhone sales. The company also announced that its board had authorized $110 billion in share repurchases, "a 22% increase over last year's $90 billion authorization," notes CNBC. "It's the largest buyback in history, ahead of Apple's previous repurchases." From the report: Apple did not provide formal guidance, but Apple CEO Tim Cook told CNBC's Steve Kovach that overall sales would grow in the "low single digits" during the June quarter. Apple posted $81.8 billion in revenue during the year-ago June quarter and LSEG analysts were looking for a forecast of $83.23 billion. On an earnings call with analysts, Apple finance chief Luca Maestri said the company expected the current quarter will deliver double-digit year-over-year percentage growth in iPad sales. What's more, he said the Services division is forecast to continue growing at about the current high rate it's achieved during the past two quarters.
Apple reported net income of $23.64 billion, or $1.53 per share, down 2% from $24.16 billion, or $1.52 per share, in the year-earlier period. Cook told CNBC that sales in the fiscal second quarter suffered from a difficult comparison to the year-earlier period, when the company realized $5 billion in delayed iPhone 14 sales from Covid-based supply issues. "If you remove that $5 billion from last year's results, we would have grown this quarter on a year-over-year basis," Cook said. "And so that's how we look at it internally from how the company is performing."
Apple said iPhone sales fell nearly 10% to $45.96 billion, suggesting weak demand for the current generation of smartphones, which were released in September. The sales were in line with analyst estimates, and Cook said that without last year's increased sales, iPhone revenue would have been flat. Mac sales were up 4% to $7.45 billion, but they are still below the segment's high-water mark set in 2022. Cook said sales were driven by the company's new MacBook Air models which were released with an upgraded M3 chip in March. Other Products, which is how Apple reports sales of its Apple Watch and AirPods headphones, was down 10% year over year to $7.9 billion.
Read more of this story at Slashdot.
