Apple has just released its financial results for the second fiscal quarter spanning January 1 to March 30, 2024. It shows a significant decline in iPhone sales which is a result of the current challenging market.
Apple iPhone Sales Decline
iPhone sales fell 10% YoY (Year-Over-Year), indicating a challenging market. However, Apple’s Services segment saw a 14% increase. Total revenue for the company was USD 90.75 billion, a 4% decrease from the previous year. Net income was USD 23.63 billion.
The decline was notably observed in Asia, while the Americas and Europe reported stable sales figures.
Fortunately, as stated earlier, Apple Services, which includes subscriptions, warranties, and payment services, generated USD 23.9 billion in revenue, surpassing analysts’ expectations. The company’s board approved a USD 110 billion common stock repurchase program, marking its largest buyback in history, and announced a 4% increase in its cash dividend.
Despite this and the company’s occasional missteps, it remains one of the world’s wealthiest businesses. It recently raised its quarterly dividend by 4% to 25 cents per share and pledged to repurchase USD 110 billion of its shares.
This move boosted the company’s shares by almost 7%, but the stock price dropped 10% this year, wiping off around USD 300 billion in wealth for investors.
So for now, we can only wait and watch what Apple’s next move will be to improve the sales of its iPhone.
FAQ
Q: Why did iPhone sales decline in Apple’s second fiscal quarter?
A: iPhone sales experienced a 10% year-over-year decline due to challenging market conditions, particularly in Asia.
Q: How did Apple’s Services segment perform during this period?
A: The Services segment saw a notable 14% increase in revenue, reaching USD 23.9 billion, surpassing analysts’ expectations.
Q: What were the total revenue and net income for Apple in this quarter?
A: The company reported a total revenue of USD 90.75 billion, representing a 4% decrease from the previous year. Net income for the period was USD 23.63 billion.
Q: What strategic decisions did Apple’s board make regarding shareholder returns?
A: The company’s board approved a significant USD 110 billion common stock repurchase program, the largest in the company’s history, and announced a 4% increase in its cash dividend.
Q: How did the market respond to Apple’s financial results?
A: Following the announcement, The company’s shares initially rose by almost 7%, although the stock price has declined by 10% year-to-date, resulting in a substantial decrease in market capitalization. Investors are concerned about potential competition from AI-focused tech giants like Microsoft and Google.
Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.
Currently he writes for Gadget Pilipinas and Grit.PH.
He is also a musician, foody, gamer, and PC enthusiast.
