Big Tech Apple bought back its shares to improve the outlook for its assets. The measure responds to a drop in iPhone sales.
Manzana decided to take a drastic measure for its finances: execute a historic repurchase of shares for US$110,000 million. This comes amid a sharp decline in iPhone sales, which was seen in the company’s fiscal second-quarter earnings report.
During the last quarter, The company’s overall sales recorded a 4% declinewhile iPhone sales plummeted by a worrying 10% compared to the previous year.
Thus, the technology giant injected a new boost to your actionswhich soared 7% in extended operations on Thursday and in the premarket this Friday, May 3, and the Apple CEO Tim Cookexpressed optimism about the company’s future.
Share buybacks: the objectives of the measure
It is worth mentioning that the share buyback It is a common strategy between companies in order to boost share price and reflect confidence in the company’s future. That is why this increase in the value of Apple’s shares is a respite for the firm in the face of concerns about the performance of its flagship product, the iPhone.
The company says in its financial report that The difficulties occur in a context of global post-pandemic, which affected both the supply chain and demand for the product. And despite this setback, Apple’s financial results exceeded market consensus expectations in several key aspects.
Earnings per share stood at US$1.53 and exceeded the estimated US$1.50, while revenues reached US$90.75 billion. Additionally, iPad sales are expected to see a double-digit increase year-over-year, with the Services division continuing its upward trend.
Source: Ambito
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