Apple posts rare revenue drop but $90bn share buyback goes ahead
Apple once again posted an, until now, rare revenue decline in its latest fiscal quarter, but said its overall business improved from the December quarter and sales of its iPhones were solid.
The results were better than Wall Street’s muted expectations and Apple’s stock inched higher in after-hours trading.
The latest numbers come after the company in February posted its first quarterly revenue drop in nearly four years after pandemic-driven restrictions on its China factories curtailed sales of the latest iPhone during the holiday season.
Apple earned $24.16bn (£19.2bn), or $1.52 dollar per share, in the three-month period that ended April 1.
That was down slightly from $25.01bn (£19.9bn), also $1.52 dollar per share, a year earlier.
Apple: iPhone sales beat expectations
Revenue fell 3 per cent to $94.84bn from $97.28bn.
Analysts, on average, were expecting earnings of $1.43 (£1.14) per share on revenue of $92.9bn (£73.9bn) according to a poll by FactSet.
Apple said iPhone sales brought in $51.33bn (£40.8bn) in revenue in the first quarter.
Analysts expected a more modest $48.66bn (£38.7bn). Revenue in its key services division was $20.91bn, slightly above Wall Street’s estimates of $20.66bn
The company said its board has also approved a $90bn share buyback programme and raised its regular quarterly dividend.
Shares of the Cupertino, California-based company climbed $1.93 dollars to $167.72 (£132.98) in after-hours trading.
Last month Apple and HP reported that global shipments of PCs fell in the first quarter of 2023 as a result of weak demand, high inventory and tough economic conditions. Apple reported the largest slump, according to the International Data Corporation (IDC).
The company’s sales of $117bn (£96bn) between October and December period were down five per cent on the same quarter the previous year, a deeper downturn than analysts had projected.
Barbara Ortutay, Associated Press