Apple surpasses Q2 expectations despite 10% drop in iPhone sales

Apple (AAPL) reported second quarter results that exceeded expectations, with sales falling less than feared and profits topping estimates. The news sent shares up as much as 4% in extended trading.

Despite challenges in Greater China, where revenue slid 8% year-over-year to $16.37 billion, Apple managed to outperform analyst expectations. iPhone revenue also dipped to $45.96 billion from $51.33 billion in the same quarter last year.

Overall, Apple reported earnings per share (EPS) of $1.53 on revenue of $90.8 billion, beating Wall Street estimates. The company also announced plans to authorize an additional $110 billion for share repurchases and increased its dividend to $0.25 per share.

While Apple’s stock has seen a decline this year, the company’s Services revenue hit an all-time high of $23.87 billion, up from $20.91 billion last year. This positive performance in the services sector helped offset some of the challenges in other areas.

Looking ahead, Apple is gearing up for its Worldwide Developers Conference (WWDC) in June, where it is expected to unveil updates to its operating systems and potentially integrate generative AI into its products. Despite being late to the generative AI party, Apple has been making strategic moves to catch up with rivals in the AI space.

With the potential to revolutionize the consumer tech market with generative AI, Apple is positioning itself for growth and innovation in the coming quarters. Investors will be watching closely to see how the company leverages this technology to drive sales and stay competitive in the ever-evolving tech landscape.