Apple announces $110 billion share buyback after iPhone sales fall by 10%
Apple’s board of directors has authorized a $110 billion share buyback. This is a 22% increase from last year’s figure of $90 billion, CNBC reports.
According to Birinyi Associates, this is the largest share buyback in history, which is ahead of Apple’s previous buybacks. Information about the share buyback came after Apple announced a decline in sales.
According to the results of the second fiscal quarter, which ended in March, the total sales of the tech giant’s products fell by 4%. During this period, the company’s revenue amounted to $90.75 billion, which exceeds analysts’ forecasts of $90.01 billion.
At the same time, iPhone sales in the period decreased by 10% and amounted to $45.96 billion, while forecasts were $46 billion. This indicates weak demand for the current generation of smartphones, which were released in September.
Apple also reported that sales of Mac laptops amounted to $7.5 billion, and iPad – $5.6 billion. Sales of other company products, including Apple Watch and AirPods headphones, were estimated at $7.9 billion.
Among other things, Apple also announced that it will pay a dividend of 25 cents per share.
Recently, it became known that Apple is increasing production of iPhones in India – now every seventh smartphone is assembled in the country.