‘That’s what parents say to be careful with what they say, no matter how stocks go down.’
Apple’s quarterly report saw the company’s revenue rise 9% year -on -year during the quarter, further marking strong growth and successfully alluring investor concerns about declining demand in the macroeconomy.
Even so, Apple Inc shares were seen declining 4% in the trading session following Apple Chief Financial Officer (CFO) Luca Maestri's warning of current quarter challenges including supply constraints that could hurt sales by $ 4 billion to $ 8 billion.
According to Maestri, the issue can be linked to the problem of declining demand in China due to the closure caused by Covid-19.
The matter was further confirmed by Tim Cook by stating that Apple is not 'immune' to supply problems.
Meanwhile, Apple noted that its board of directors authorized a $ 90 billion share buyback, and they have spent $ 88.3 billion on buybacks in 2021 alone.
In addition, Apple has increased its dividend by 5% to 23 cents per share.
On a different angle, Apple’s smartphone business has grown 5% in this first quarter with the best -selling iPhone 13 model, it according to Cook was the most successful quarter.
Meanwhile, the Mac computer business also grew strongly at 15% year-on-year after Apple introduced the use of the new M1 chip in its lineup of models.
On the other hand, Apple’s iPad business is seen to continue to flatten with its sales down 2.1% from a quarter a year ago and Cook attributed the matter to the problem of ‘significant supply constraints’.
For Apple's other services business including subscriptions, licensing fees and extended warranties, it continued to grow well at 17%, beating Wall Street's expectations at 3%.
As a result, Cook concluded that Apple’s financial performance was ‘better than expected’, with the U.S. region seeing a 20% increase in sales at $ 50.57 billion and the Chinese region by 3.47% at $ 18.34 billion.
