Apple Shakes Off iPhone Slump with Record Buyback and Dividend Hike
Quote from VATcal on 04/05/2024, 20:26Apple defied a slump in iPhone sales on Thursday, announcing a record $110 billion stock buyback program and a 4% increase in its quarterly dividend. The news sent the company's share price soaring nearly 7% in after-hours trading.
This comes despite Apple reporting its steepest decline in iPhone sales since the early days of the COVID-19 pandemic. Revenue dipped for a fifth consecutive quarter, driven by a 10% year-over-year drop in iPhone sales. The pressure is on for the tech giant to innovate, with competition from Chinese rivals like Huawei heating up.
However, Apple's financial strength remains undeniable. The company's commitment to rewarding shareholders through a dividend increase and a record buyback program indicates a healthy cash flow. The dividend rise brings the quarterly payout to 25 cents per share.
This move has been met with mixed reactions. While investors cheered the news, some analysts suggest it highlights a shift in focus – prioritising shareholder returns over product development. The pressure is now on Apple to prove it can maintain its innovative edge while navigating a challenging market.
Apple defied a slump in iPhone sales on Thursday, announcing a record $110 billion stock buyback program and a 4% increase in its quarterly dividend. The news sent the company's share price soaring nearly 7% in after-hours trading.
This comes despite Apple reporting its steepest decline in iPhone sales since the early days of the COVID-19 pandemic. Revenue dipped for a fifth consecutive quarter, driven by a 10% year-over-year drop in iPhone sales. The pressure is on for the tech giant to innovate, with competition from Chinese rivals like Huawei heating up.
However, Apple's financial strength remains undeniable. The company's commitment to rewarding shareholders through a dividend increase and a record buyback program indicates a healthy cash flow. The dividend rise brings the quarterly payout to 25 cents per share.
This move has been met with mixed reactions. While investors cheered the news, some analysts suggest it highlights a shift in focus – prioritising shareholder returns over product development. The pressure is now on Apple to prove it can maintain its innovative edge while navigating a challenging market.
