Apple (AAPL) reported second quarter results on Thursday that exceeded expectations, with sales falling less than feared and profits topping estimates. The news sent shares up around 6% in pre-market trading on Friday.
Despite challenges in Greater China, including a resurgent Huawei and a slowing economy, Apple managed to beat analyst expectations. The company’s iPhone revenue dipped to $45.96 billion, down from $51.33 billion in the same quarter last year. However, overall revenue came in at $90.8 billion, with earnings per share (EPS) of $1.53, surpassing Wall Street estimates.
Apple also announced plans to authorize an additional $110 billion for share repurchases and increased its dividend to $0.25 per share. The company’s stock has been struggling, down 10% year to date, but the positive earnings report may help turn things around.
One bright spot for Apple was its Services revenue, which hit an all-time high of $23.87 billion, up from $20.91 billion last year. The company is also gearing up for its Worldwide Developers Conference (WWDC) in June, where it is expected to unveil the latest versions of its operating systems and potentially integrate generative AI into its products.
While Apple may be late to the generative AI party, the company is making significant investments in the technology and looking to collaborate with industry leaders like OpenAI and Google. This move could help differentiate Apple’s products and drive sales in the future.
Overall, Apple’s second quarter results exceeded expectations and show that the company is still a force to be reckoned with in the tech industry. Investors will be watching closely to see how Apple continues to innovate and grow in the coming months.