Economy

Apple Bounces Back: Shares Surge on Strong Services Growth

1 Mins read

It’s been a rough few months for Apple investors, but those clouds parted with a silver lining on Thursday. Shares soared in after-hours trading after the tech titan’s latest earnings report beat down gloomy expectations. While overall revenue slipped, it was buoyed by record-breaking results in its Services division.

What really has shareholders excited is a staggering $110 billion share buyback program – a signal of Apple’s confidence in its own future. The cherry on top? An increased dividend payment.

Pavlo Gonchar/Zuma Press

The Numbers That Matter

  • Revenue: $90.75 billion (a slight dip compared to last year, but still ahead of analyst predictions).
  • Net Income: $23.64 billion (a small decrease, but earnings per share actually inched upwards)
  • Services: $23.87 billion (a strong 14% year-on-year growth, making it a bright spot)

“Our customers are deeply invested in the Apple ecosystem – literally! The fact that our install base of devices keeps hitting record highs is a testament to that, and these results are a direct reflection of that loyalty,” said Apple CFO Luca Maestri.

Getty Images

The Not-So-Great

Let’s be real, iPhone sales took a hit, mirroring some broader economic headwinds. China, a key market, also saw a dip in revenue.

The Bottom Line

Apple’s stock had been lagging this year, fueled by worries about both iPhone demand and the challenges in China. Today’s report isn’t a magic fix, but it’s a much-needed injection of optimism. Investors seem to agree, sending the stock surging in response to the surprisingly good news and that massive buyback announcement.

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