San Francisco, California – Apple shares experienced a surge on Thursday after the tech company exceeded analysts’ revenue expectations for the first quarter of 2024, despite facing challenges in China. The company reported a revenue of $90.75 billion, slightly surpassing consensus estimates of $90.3 billion. Apple also announced $110 billion in share buybacks and a 4% increase in its quarterly dividend.
Services revenue, which includes the App Store, Apple TV, and Apple Pay, showed strong growth, reaching a record $23.9 billion. However, revenue from the iPhone, Apple’s flagship product, decreased to $46 billion from $51.3 billion the previous year. Diluted earnings per share were $1.53, slightly higher than the estimated $1.50, but down from $1.52 the previous year.
Despite challenges in China, with a 19% decrease in iPhone sales compared to the previous year, Apple’s chief financial officer Luca Maestri expressed confidence in the company’s performance. The $110 billion share buyback indicates Apple’s optimism for the future, with new products expected to be unveiled.
Regulators in both the US and the EU have been scrutinizing Apple’s practices, with the Department of Justice filing an antitrust lawsuit against the company and the EU investigating its compliance with digital regulations. Despite these challenges, analysts remain optimistic about Apple’s potential to boost sales through new features, such as generative artificial intelligence, which could be announced at upcoming events.
Chief Executive Tim Cook has hinted at sharing details about the company’s developments in the AI space later this year, emphasizing Apple’s focus on innovation and growth. The company’s ability to adapt to changing market dynamics and regulatory pressures will be crucial in maintaining its position in the tech industry. Investors and analysts will be closely watching Apple’s next moves as it navigates these challenges and continues to innovate in a competitive market.