Apple surpasses expectations with new IPad launch in May 2024

American multinational corporation and technology company, Apple Inc. (formerly Apple Computer, Inc.) has defied analysts’ pessimism on Thursday, exceeding bearish expectations for quarterly revenue.


Despite a challenging start to 2024, the leadership of the 48-years-old company offered a positive outlook for the rest of the year.


Revenue dipped slightly for Apple in the first quarter of 2024 when the company reported $90.75 billion, down 4% year-over-year, but still managed to beat analyst expectations of $90.3 billion.


This decline, according to the Steve Jobs- founded company, was driven by a 10% drop in iPhone sales, which fell from $51.3 billion to $46 billion.


Also, in the period under review, sales in China, a key market for Apple, saw a decrease, going from $17.8 billion to $16.3 billion.


Despite the slight revenue dip, investors have reacted positively as Apple’s share price jumped 6% after the earnings release, reflecting relief that the quarter wasn’t as bad as some speculated and feared.


The company further bolstered investor confidence by announcing a hefty $110 billion share buyback program and a 4% increase in their quarterly dividend.


Acknowledging concerns about its hardware sales, Apple nonetheless anticipates significant product launches to mitigate a challenging start to 2024.

Read more: Inside Apple’s $2 Trillion Empire: The Products that Deliver the Revenues

The company forecasts modest single-digit growth for hardware sales, while projecting continued robust growth in its services sector.


Meanwhile, revenue from services, which encompasses the App Store, Apple TV, and Apple Pay, has surged by 14% to a record-breaking $23.9 billion during the last quarter.


In a post-earnings call, CEO Tim Cook expressed optimism about upcoming product launches featuring new generative artificial intelligence capabilities.


These innovations, he believes, will help revive hardware sales.


While details remain scarce, Cook promised to share more “in the weeks ahead.”


Analysts are looking forward to Apple’s developer conference in June, hoping for the unveiling of innovative features that could reignite sales of iPhones and laptops.


This anticipation follows the launch of the Vision Pro headset in February, and rumours suggest a new iPad model reveal at an upcoming May event.


These potential product launches, coupled with Tim Cook’s optimism about AI advancements, create a sense of excitement that could translate into increased sales.


According to Gene Munster of Deepwater Asset, the share buyback has exceeded his initial estimate of $90 billion, indicating Apple’s strong “confidence” in its prospects for the remainder of the year.


Munster, believes the company’s stock price is rising because the business is staying stable and is expected to grow rapidly in the coming three quarters.


Arbiterz gathered that Apple’s stock price has been down for most of the year (down 7% by last Thursday), relinquishing its position to Microsoft as the world’s most valuable company.


This comes after a rough few months for Apple, including cancelling its car project, facing increased pressure from regulators, and experiencing slowing iPhone sales in China.


Sales of iPhones in China took a hit according to Counterpoint Research, dropping 19% in the first quarter compared to last year.


This slump, along with data from International Data Corporation, shows Apple losing its global smartphone sales lead to Samsung.

Also read: iPad Air 2022 review: A worthy follow-up to the best tablet in years

The competition is heating up as Chinese companies like Xiaomi and Huawei are making strong comebacks in a recovering phone market.


However, Apple’s CFO, Luca Maestri, highlighted to the Financial Times that the number of active Apple devices in China has reached an all-time high, indicating strong iPhone sales despite intense competition in the Chinese market.


The $110 billion buyback, according to Maestri, reflects Apple’s optimism about the company and its future plans for customers.


He also hinted at a flurry of new product launches coming soon.


Apple’s hefty share buyback and dividend hike solidify the trend of big tech companies prioritizing investor rewards.


This follows similar moves by Alphabet, which recently initiated its first-ever dividend, and Meta’s February announcement of a dividend increase.


Arbiterz understands that the new trend is a strong indicator that these tech giants are navigating a competitive landscape while sending a clear message of the significance of returning value to shareholders.


Haleed Nurudeen

Nurudeen Haleed Olamilekan is a graduate from the Faculty of Law, Obafemi Awolowo University, Ife where he got awarded LLb Law. A cheerful team member who is passionate about human rights and believes that societal problems can be solved by the selfless service of all members of the community. Vast in policy formulation and implementation. Has spectacular leadership skills. Experienced Public Relations Officer with a demonstrated history of working in the legal services industry. His area of expertise includes youth activism, politics and management, proposal writing, articles and publications writing, legislative monitoring and youth advocacy. He is an avid reader,… More »

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