Apple's $110 Billion Mistake
Date
5/6/2024 10:14:35 AM
(MENAFN- Baystreet) KULR Flat on News of Compliance
Alcoa CEO Set for Next Week's
conference Wendy's Adds to Leadership Team
AIM Completes Ampligen Turnout
WestJet Reaches Deal With Maintenance Workers, Averting A Strike Previous Articles Subscribe to Get Small Cap News & Alerts Chris Lau - Monday, May 6, 2024
Apple's $110 Billion Mistake
Throughout 2024, stock markets anticipated that Apple (AAPL) would report a double-digit percentage drop in iPhone sales. Last week, the firm offset weak iPad and iPhone sales by announcing a massive $110 billion stock buyback. It also hiked its dividend to 25 cents a share, up by 4%.
The dividend increase is somewhat comparable to Alphabet's (GOOG) dividend yield. first-time-ever dividend. GOOG stock now pays a 0.19% dividend yield, compared to Apple's 0.50% yield.
Sales Fall
Apple posted iPhone sales of $45.96 billion. Sales weakened primarily from trouble in China. Although the media credits domestic brands like Huawei and Xiaomi for taking Apple's market share, China's economic weakness is the primary reason. Wearables and iPads accounted for $5.56 billion and $7.91 billion in revenue. This is down by 17% and 9.6%, respectively.
Risk from Stock Buyback
Apple silenced bears with the aggressive stock buyback last Friday. AAPL stock gained 5.98%, erasing much of the YTD loss. Shares are now down by 4.75% in 2024.
The long-term prospects for Apple may prove worrisome. The firm is rewarding shareholders and management as core sales decline. Apple could have invested in innovating the iPhone, iPad, and Macbook technology. Without major product changes, consumers will delay upgrading their devices.
Samsung overtook Apple as the #1 smartphone manufacturer. Its Flip and Fold phone devices are winners. Apple needs a similar product win that resonates with its loyal fans.
About Us Contact Us Advertise License Our Content Jobs Disclaimer Privacy Policy
Copyright 1998 - 2024 Baystreet Media Corp. All rights reserved. Nasdaq Stocks: Information delayed 15 minutes. Non-Nasdaq Stocks: Information delayed 20 minutes. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Market Data is provided by QuoteMedia. Earnings by Zacks. Analyst Ratings by Zacks
MENAFN06052024000212011056ID1108178446
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.