Apple’s sales dropped by a record $90.8 billion In the first quarter of 2024.

Apple has announced a massive $110 billion share buyback program even though their sales have dropped.

Apple CEO Tim Cook talked about the company’s future after revealing the biggest sales drop in over a year.

In the first quarter of 2024, Apple’s sales decreased by 4% compared to last year, totaling $90.8 billion. This drop was mainly because fewer people were buying iPhones.

Company leaders said the drop in sales was due to supply issues related to Covid, which had previously boosted sales during the same period last year. Despite this, they remain optimistic about growth because of new products and investments in artificial intelligence (AI).

Cook expressed strong optimism, saying, “I couldn’t be more excited about the future we have ahead of us.”

To show confidence in their future, Apple also announced a record-setting $110 billion program to buy back its shares.

This announcement helped increase the demand for Apple stock in after-hours trading, even though their stock price has fallen by over 6% this year.

Apple has seen sales drops in five of the past six quarters, which contrasts with the general increase in smartphone shipments worldwide.

Quarterly iPhone sales fell by more than 10% from last year, with declines in every region except Europe. Notably, sales in the greater China area dropped by 8%, but Cook highlighted that sales were up in mainland China.

Despite challenges like competition from companies like Huawei and legal issues in the US and Europe over app store fees, Apple is still hopeful.

Chief Financial Officer Luca Maestri expects sales to slightly increase in the next quarter and sees potential for significant growth in their services sector.

Analyst Angelo Zino from CFRA Research thinks these latest results could change how people view Apple, especially with unexpected strong performances in China and upcoming events that might improve investor confidence.