iPad launch Archives ~ My Mobile India

Highlights Apple's stock jumps 6% despite a drop in iPhone sales. Record $110 billion share buyback announced. Services revenue hits all-time high, driving growth. New iPad models expected at upcoming product launch event. Investors are looking unfazed by Apple's year-over-year dip in fiscal second-quarter earnings, with the Cupertino giant’s shares spiking over 6% after the stock market's closure. Should this rally persist into regular Friday trading, it would mark Apple's steepest stock surge since November 2022. Pretty great considering the dismal sale numbers being seen across the world for iPhones. Despite iPhone Sales Stumble, Share Buyback Sparks Optimism Apple's stock jumps 6% despite a drop in iPhone sales The primary driver behind the stock's upswing is Apple's announcement of a mammoth $110 billion share buyback approval – the largest ever for a publicly-listed company. This has more-or-less quelled any dispersions Wall Street had regarding Apple stock. Concerns have cropped up Apple said the iPhone experienced a 10% year-over-year sales decline from $51.33 billion to $45.96 billion. However, this blockbuster buyback seemingly overshadowed any concerns. “Keep in mind as we described on the last call in the March quarter a year ago, we were able to replenish iPhone channel inventory and fulfill significant pent up demand from the December quarter COVID-related supply disruptions on the iPhone 14 pro and 14 Pro Max,” CEO Tim Cook explained on an earnings call. “We estimate this one time impact is to $5 billion to the March quarter revenue last year. If we remove this from last year’s results, our March quarter total company revenue this year would have grown.” “We expect our services business to grow double digits at a rate similar to the growth we reported for the first half of the fiscal year,” CFO Luca Maestri noted on the call. He added that, “iPad should grow double digits.” Services Segment Shines, Hardware Lags Record $110 billion share buyback announced Apple CEO Tim Cook said, "Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services. During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us." The Services division, encompassing offerings like iCloud, Apple TV+, and Apple Music, soared 14% year-over-year as the company doubles down on subscriptions to offset anticipated hardware sales slowdowns. Apple Vision Pro Debut, New Product Tease Services revenue hits all-time high, driving growth Cook also highlighted Apple's "delight" at launching the Vision Pro headset last quarter, underscoring its potential to "unlock spatial computing." He teased an "exciting product announcement" for next week, alongside June's Worldwide Developers Conference. His delight and statement have omitted any sales figures for the Vision Pro. Instead Apple has clubbed it in with its entire wearables division which included things like the AirPods and Apple Watch. European Sales Buoyed by Digital Markets Act Apple Shares Soar Despite iPhone Sales Dip, $110 Billion Buyback Fuels Optimism Intriguingly, Europe stood as the sole region where Apple defied the sales slump, buoyed by the recent Digital Markets Act (DMA). The DMA allows EU users to sideload apps, use third-party payment platforms for in-app purchases, and set non-WebKit browsers as default on iPhones. How many of these 3rd party sales actually translate into revenue for Apple is a matter for another day. iPad Sales Sag Ahead of Expected Refresh Apple Working to Restore Growth Apple's iPad sales also dipped from $6.67 billion to $5.56 billion year-over-year, likely impacted by the lack of a refresh since 2022. However, the company is slated to unveil two new iPad models at a standalone event next week called Let Loose. Speculations are rife but most point towards the arrival of the highly anticipated OLED iPad Pro and a larger 12.9-inch iPad Air. FAQs Why did Apple's stock rise despite falling iPhone sales? The surge in Apple's stock was largely due to the announcement of a record $110 billion share buyback program, which reassured investors about the company's financial health. What did Apple announce about its Services division? Apple reported a 14% increase in its Services division revenue, setting a new all-time high, as the company focuses on subscription services to balance hardware sales declines. What new product did Apple tease for the next week? Apple CEO Tim Cook teased an exciting new product announcement scheduled for next week, which is expected to include new iPad models. How did Europe's sales fare for Apple this quarter? Europe was an exception to the global sales decline, potentially boosted by new regulations like the Digital Markets Act allowing more third-party interactions on Apple devices. What's expected at Apple's upcoming product launch event? Apple is anticipated to unveil new iPad models, including an OLED iPad Pro and a larger iPad Air, which could rejuvenate its tablet sales. Also Read: Apple’s iPhone 15 Pro Max Leads 2024 Sales, Major Price Cuts in China Signal Strategic Shift Also Read: iPhone 15 Sales Struggle in China: What’s Behind Apple’s Market Woes?