Apple's Decline in iPhone Sales and Future Plans
Apple reports a 10% drop in year-over-year iPhone sales for the January-March period, resulting in a 4% decrease in revenue. Despite the decline, Apple's profit slightly exceeded analyst projections. The company plans to increase its quarterly dividend and buy back $110 billion in stock. Apple's shares rose 7% in extended trading. The company is expected to unveil more AI services in June to differentiate itself in the industry.
Key Points
- Apple's revenue and earnings per share slightly exceeded analyst projections
- Weak iPhone sales attributed to big boost in sales during the same period last year and sales decline in China
- Investors concerned about Apple losing edge in AI technology to rivals like Microsoft and Google
- Apple plans to unveil more AI services in June
- European regulators forcing Apple to allow more alternatives to its proprietary iPhone app store
Pros
- Apple's profit slightly exceeded analyst projections
- Plans to increase quarterly dividend and buy back $110 billion in stock
- Expected to unveil more AI services in June to differentiate itself
Cons
- 10% drop in year-over-year iPhone sales
- 4% decrease in revenue for the latest quarter
- European regulators forcing Apple to allow more alternatives to its proprietary iPhone app store