Apple’s latest financial report paints a mixed picture of its performance. While the company’s shares surged by 7% in extended trading following the announcement, there are some notable ups and downs in its numbers.
On the positive side, Apple reported earnings per share (EPS) of $1.53, beating estimates by 3 cents. Revenue also surpassed expectations, reaching $90.75 billion compared to an estimated $90.01 billion. The Services division continued its strong growth trajectory, with revenue climbing to $23.9 billion, up 14.2% from the previous year.
However, not all segments saw growth. iPhone sales, for instance, dropped by 10% year over year, contributing to an overall 4% decline in sales. Mac sales were up by 4%, driven by the release of new MacBook Air models, but still below previous highs. Other Products, including Apple Watch and AirPods, saw a 10% decrease in revenue.
“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.”
Looking ahead, Apple is optimistic about the June quarter, expecting low single-digit growth in overall sales. It anticipates double-digit growth in iPad sales and continued strong performance from the Services division.
Apple’s performance in China, its third-largest market, showed resilience despite a decline in revenue. Sales in Greater China were off by 8%, but this was better than analysts’ expectations and Cook noted that iPhone sales actually grew in the region during the quarter.
In terms of strategic moves, Apple announced a significant expansion of its stock buyback program, authorizing $110 billion in share repurchases. This marks the largest buyback in history for the company.
While the financials show some areas of concern, particularly in iPhone sales and certain product segments, Apple remains bullish about its future prospects, citing upcoming product announcements and events like the Worldwide Developers Conference as key opportunities for growth.