Historic Apple Buyback

Apple has just announced the biggest stock buyback in the company’s history, valued at over $110 billion. They also announced a 4% dividend increase after the buy-back. This comes after Apple’s sales dropped by almost 10%, mainly due to the decreased Chinese popularity of Apple products. 

The Apple buyback is an effort to regain the iPhone’s popularity on the market. Buying back outstanding shares increases the remaining share prices. As expected, share prices increased by 6% after market hours on Thursday.

Stock Analysts and Wall Street expected the decision and were holding their breath for it, but they underestimated its scale. Market caps of many notable companies are worth $110 billion, such as Boeing Co. With sufficient shares remaining, it indicates how monstrous of a company Apple is.

Losing Grip on the Chinese Market?

Many economists and tech enthusiasts, including Apple’s senior employees, are worried about the iPhone’s decline in popularity, partly due to its perceived lack of innovation, and partly to a loss in Chinese sales. China is the largest foreign market in the world, and losing a grip on it could be detrimental to Apple’s future standing.

Falling Behind in the AI Race?

Apple has also been criticized for its lack of AI development- the key driver for the rise and success of any company nowadays. Google, recently valued at $2.2 trillion, credited AI for its success. Read about it here.  It is regarded as being “behind” in the AI race, compared to other companies of similar value, like Alphabet and Microsoft.

LSEG (London Stock Exchange Group) consensuses show that they expected a drop in all sales. Actual results for Apple-related products were close to the prediction. iPhone sales fell just short of forecasts- $45.96 vs $46.00 billion. iPad sales also fell short: $5.6 vs $5.91 billion. However, Mac sales exceeded predictions: $7.5 vs $6.86 billion.

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Cover Image– Capitalism