Apple’s financial results were released on Thursday, revealing a decline in overall revenue attributed to weak iPhone sales. Despite this, profits exceeded market expectations, leading to a rise in Apple’s shares during after-hours trading.
According to Apple CEO Tim Cook, the company reported revenue of $90.8 billion in the March quarter, which included strong performance in services, marking a new sales record.
Although Apple’s revenue was $90.8 billion, a 4% decrease from the previous year, it surpassed expected profits of $90.1 billion. The company also announced a 4% increase in cash dividend per share and $110 billion in stock repurchases.
Thomas Hasson, vice president and principal analyst at Forrester, commented on Apple’s shift towards a services business model to lessen its reliance on iPhone sales, calling it a strategic approach.
Despite becoming the world’s largest smartphone provider by overtaking Samsung late last year, Apple faced a decline in smartphone shipments in the first quarter of the year due to competition from Chinese rivals like Huawei. Cook and CFO Luca Maestri addressed concerns about the company’s performance in China during the earnings call.
Apple plans to invest significantly in generative AI in the upcoming quarter, aligning with recent moves in the tech industry. The company aims to introduce groundbreaking AI features to its products in the near future.
Following the cancellation of the self-driving electric car project, Apple redirected resources towards AI projects and research. The company has quietly established an AI research institute in Zurich and aims to integrate generative AI into smartphones later this year.
Apple also faced legal challenges, including antitrust lawsuits from U.S. and European regulators. Despite controversies, the company remains committed to its environmentally responsible business practices and innovative product development for the future.
Cook expressed optimism for Apple’s future, highlighting the innovative spirit of the team and the ongoing importance of Apple’s products and services in people’s lives.
Source: www.theguardian.com
