Apple reported its quarterly results for the second quarter of 2024, beating analysts’ forecasts in several segments but showing a decrease in revenue in most products. Despite these challenges, Apple announced a large share buyback plan and a small dividend, with no mention of artificial intelligence.
Apple’s stock rose by about 6% in late trading due to the buyback announcement and slightly beating revenue forecasts. However, there is concern about continued buybacks leading to net debt if sales continue to decline. The most significant drop was in iPhone sales, with a 10% decrease compared to the same period last year. Additionally, there was a 4% drop in sales overall.
In the services segment, Apple reached a new revenue record with a 14% increase compared to the previous year. However, there is concern about slowing growth and price increases in Apple services. Critics point out that Apple has not innovated significantly in recent years and has lagged behind in investments in capital expenditures, especially in artificial intelligence.
Competition poses a challenge for Apple as competitors like Huawei and Xiaomi gain market share, especially in China. Despite these challenges, some analysts believe that Apple can leverage artificial intelligence features to boost sales, especially in existing products like Siri.
Overall, Apple’s quarterly results show a mixed picture of challenges and opportunities for the company as it navigates through tough competition and changing market dynamics while investors and observers are keen to see how Apple will innovate and adapt in the future.
