Apple\’s revenue beat analysts\’ expectations, predicting sales will resume growth this quarter

Apple\’s quarterly revenue is better than market expectations. The company predicts that sales will return to positive growth this quarter, and the market is optimistic that the decline in performance is expected to slow down.

Special Topic: Apple\’s fiscal 2024 Q2 revenue exceeds expectations and will repurchase an additional US$110 billion in shares. Apple\’s quarterly revenue is better than market expectations. The company predicts that sales will return to positive growth this quarter. The market is optimistic that the decline in performance is expected to slow down.
The company announced on Thursday that revenue for the fiscal second quarter ended March 30 fell 4.3% to $90.8 billion.
Analysts on average expected $90.3 billion.
Profit for the quarter topped Wall Street expectations.
Apple Chief Financial Officer Luca Maestri said that sales are expected to return to growth this quarter. Revenue growth rate is low single digits.
The earnings report brought relief to investors who had been waiting for the iPhone maker to shake off its long decline.
Affected by unfavorable factors such as the sluggish smartphone market, Apple\’s revenue has declined in five of the past six quarters.
The company warned analysts in February that revenue in the latest quarter would fall about 5% year-over-year.
Apple rose more than 7% after hours. As of Thursday\’s close, the stock had fallen 10% this year to $173.03.
Second-quarter earnings per share were $1.53, exceeding analysts\’ estimates of $1.50.
Apple raised its dividend 4% to 25 cents per share, in line with expectations.
The board of directors approved plans to repurchase an additional $110 billion in shares.
A lack of product innovation is one of the reasons for Apple\’s slowdown in sales. But the company hopes to rectify this problem on May 7, when it plans to launch a new iPad. This will be the first new release of its tablet product line in a year and a half.
Apple also plans to make a long-awaited move into generative artificial intelligence.
June. CEO Tim Cook is expected to outline Apple\’s artificial intelligence strategy at its annual Worldwide Developers Conference.
Apple\’s largest source of revenue is still the iPhone, accounting for about half of sales.
The product generated $46 billion in second-quarter revenue, beating estimates of $45.8 billion.
But it has fallen sharply compared with revenue of $51.3 billion in the same period last year.
Apple plans to upgrade its iPhone this year with a larger screen and artificial intelligence chip.
The Pro model will also add a new button for taking photos and videos. But the rest of the look will be the same as the current version.
The iPad business continued to decline last quarter, with revenue of US$5.56 billion, lower than analysts\’ average estimate of US$5.91 billion.
Apple has not upgraded the iPad\’s hardware in an entire calendar year. This is the first time since the company was founded.
The device is likely to perform better this quarter as a release of pent-up demand helps drive sales of new models scheduled to be released next week.
Mac computer sales were $7.45 billion, exceeding the estimate of $6.79 billion.
The business got a boost from the new MacBook Air.
According to reports, Apple plans to release its first Mac computer equipped with an M4 processor later this year, increasing its focus on artificial intelligence capabilities.
Apple\’s wearables, home and accessories division brought in $7.91 billion in revenue. Estimates were $8.29 billion, down nearly 10% year-over-year.
The latest Apple Watch models are only minor upgrades. The company has yet to resolve a patent infringement lawsuit related to the blood oxygen saturation calculation feature.
The services segment was a relative bright spot, with revenue of $23.9 billion, above Wall Street expectations of $23.3 billion.
This category includes Apple Music, TV+ streaming platforms and iCloud subscriptions. But revenue mainly comes from the App Store.

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