Apple Inc. faced its steepest quarterly decline in iPhone sales since the pandemic began, with a 10% drop in year-over-year sales for the January-March period. This decline marks the biggest drop in iPhone sales since the pandemic-induced production bottlenecks of 2020. Despite this, Apple’s revenue for the quarter decreased by 4% to $90.8 billion, with a profit of $23.64 billion, slightly above analysts’ projections.
The tech giant also announced a 4% increase in its quarterly dividend and a commitment to spend $110 billion buying back its own stock, which led to a 7% rise in its shares in extended trading. However, concerns remain about Apple’s ability to innovate and keep up with competitors in the artificial intelligence space.
Investors are looking to Apple’s upcoming annual conference in June, where the company is expected to unveil new AI services. CEO Tim Cook emphasized Apple’s belief in the transformative power of AI and promised more details soon. Weak sales in China and ongoing legal battles, including an antitrust trial and regulatory scrutiny in Europe, add to the challenges facing the company.
Despite these hurdles, Apple saw growth in its service division, with a 14% increase in revenue to $23.87 billion. This division benefits from deals with Google and commissions from digital transactions within iPhone apps. As Apple navigates these challenges, investors and analysts are eagerly awaiting the company’s next moves to stay competitive in the rapidly evolving tech industry.