Apple Continues Being Mysterious About AI While Services Reach A New Revenue Record And The iPhone Continues Its Fall From Glory
Portfolio Pulse from Upwallstreet
Apple Inc (NASDAQ:AAPL) reported its fiscal Q2 results with a slight revenue increase over Wall Street expectations but saw a drop in overall revenue and iPhone sales. The company announced a $110 billion share buyback, its largest ever, representing a 22% increase YoY. Revenue fell 4% YoY to $90.75 billion, with iPhone sales down 10% YoY. However, services revenue was a highlight, growing 14.2% YoY to $23.9 billion. Apple did not provide official guidance but expects low single-digit sales growth in the June quarter. The company remains secretive about its AI plans, with more details expected at its June developer event.
May 06, 2024 | 1:41 pm
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Apple's fiscal Q2 report showed a revenue drop and falling iPhone sales but exceeded Wall Street expectations. Announced a $110 billion share buyback and saw significant growth in services revenue.
The announcement of a record share buyback and the growth in services revenue are positive signals for investors, potentially offsetting concerns over the drop in iPhone sales and overall revenue. The anticipation of new product announcements and AI plans may also contribute to positive investor sentiment.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Meta Platforms is increasing its investment in generative AI, with CEO Mark Zuckerberg indicating it will take years to monetize AI but expressing confidence based on Meta's track record.
Meta's increased focus on AI development, despite the long timeline for monetization, reflects a strategic investment in future technologies. This could attract investor interest in the company's long-term growth prospects, despite the current lack of direct revenue from AI.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50