The crisis at Apple continues. The company posted its second quarterly revenue decline. Tim Cook unveiled Thursday that Apple earned $94.8 billion between January and March 2023. The data doesn't seem bad but compared to the previous quarter, numbers are down 3%, which could mean that a dark future lies ahead.
It's not all bad news. Earnings are slightly higher than Wall Street expected but are still down compared to earnings between October and December 2022. When it comes to net income, Apple revealed that earnings fell by more than 3% to nearly $24.2 billion.
The reason? According to the company, the poor results were due to the fact that they had detected a drop in the amount that customers were willing to pay for an iPhone or a Mac computer. Consumers are fearful of an economic crisis now more than ever. Tim Cook assured that this didn't stop the company from setting "a March quarter record for iPhone [sales] despite the challenging macroeconomic environment."
Apple buys back shares from investors
The company led by Tim Cook tried to alleviate the negative effects of its financial situation. Luca Maestri, the company's CFO, announced that the company would buy back up to $90 billion of shares from investors:
Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row.
This reassured investors and caused Apple shares to go up by just over 1%. However, the company's financial problems don't end there. Apple recently announced that it will lay off some of its personnel and is trying to find a solution to its financial crisis.
This solution may lie in its service business. Maestri told investors in a phone call that Apple Music, Apple TV+ and Apple Games are just a few of the services that posted an all-time sales record and managed to make about $20.9 billion in this quarter alone.