Apple shares post largest gain since late 2022 after earnings
Much Shares Friday As To The File $187 As On Picture 8% Rallied
Apple shares jumped the most in almost a year-and-a-half after the company posted stronger-than-expected sales last quarter and predicted a return to growth in the current period, sparking optimism that a slowdown is easing.
Though revenue fell 4.3% to $90.8bn (€84.3bn) in the March quarter, that was better than the $90.3bn predicted by analysts.
Profit also topped projections in the period, and Apple announced the biggest stock buyback in US history.
The shares rallied as much as 8% to $187 on Friday.
It was the biggest intraday gain since November 2022.
Apple had been down 10% this year before results were released on Thursday night.
The results came as a relief to investors, who have been waiting for the iPhone maker to pull out of a long slump.
Apple has posted sales declines in five of the past six quarters, hurt by a sluggish smartphone market and headwinds in China.
The company had warned analysts in February that revenue in the latest period would be down about 5% from a year earlier.
A lack of innovative new devices has contributed to slow sales at Apple, but the company looks to begin rectifying that on Tuesday.
That is when it plans to unveil new iPads — the first updates to its tablet line for 20 months.
It also is planning a long-awaited push into generative artificial intelligence (AI).
In June, CEO Tim Cook is expected to lay out Apple’s AI strategy at its annual worldwide developers' conference.
"We are making significant investments in the space,” chief financial officer Luca Maestri said.
“We believe we are well-positioned.”
Mr Cook had said on Thursday night that Apple will stand out from its AI rivals by tightly integrating hardware and software, using in-house chips, and making privacy and security a priority.
Apple’s slowdown in China has been of particular concern to investors in recent months.
Consumers there are flocking to homegrown smartphone brands, and the government has banned the use of foreign technology in some offices.
Counterpoint Research estimated that sales of the iPhone nosedived 19% in China during the first three months of the year, the product’s worst quarter since 2020.
Worldwide, shipments of the device fell nearly 10% in the quarter, according to IDC, marking the steepest drop since covid lockdowns snarled supply chains in 2022.
Against that backdrop, Apple’s China results were more upbeat than expected.
The company generated $16.4bn in revenue from greater China last quarter.
Though that number was down from a year earlier, it handily beat the $15.9bn analysts had predicted.
Mr Cook also pushed back on the idea that the iPhone was suffering in the country, saying that revenue from the device actually grew in mainland China.
The weakness stemmed from other parts of the business, he said. “Other products didn’t fare as well,” he said on a conference call.
“And so we clearly have work there to do.”
- Bloomberg