Many on Wall Street were worried that Apple was not the darling that it once was in the market. They feared that declining iPhone sales would tank the company’s earnings and thus the stock price as well. However, the company actually reported higher than expected earnings even as it did fess up to lower iPhone sales.
On the one hand a person may look at that state of affairs and still worry that those lower iPhone sales are something that could do harm to the company in the long run. However, a more bullish person on this stock would say that it is still so impressive that Apple was able to beat earnings even as it had struggles with its iPhones.
CNBC notes that Apple also announced a nice $100 billion buyback program. That is expected to bolster shareholder value in the stock. That buyback program was somewhat expected, but the size that it would ring in at was not something that was known. A lot of people were surprised when the company actually offered such a high figure like that. They were also pleased with the fact that even though the iPhone sales were a little lagging, they were still up compared to the year prior.
Investors seemed to be able to get past the headlines regarding the soft sales numbers and really focus in on reading between the lines to get the best understanding of what was truly happening with the company. They rewarding the company with a higher share price by the end of the session. It was just one of those moments when we all had to come to grips with what was going on at Apple and how it was likely to impact their earnings going forward.
CEO Tim Cook was optimistic on the investor call and had a strong outlook for the company going forward. He said that research and development was progressing along nicely and that sales remain strong.
While some are still worried about competition from Chinese companies, Apple was quick to note that it experienced growth in all sectors of the global that it operates in. This included a big twenty percent growth rate year-over-year in greater China and Japan. That was something that the company was very pleased to be able to announce about itself. They want their investors to understand that they are still moving forward full steam ahead.