Apple gains by losing: as expectations are surpassed, shares climb despite declining sales
Despite exceeding market estimates, revenues decreased 4.3% in the first quarter to $90.753 billion; nevertheless, the company anticipates growth to resume in the current quarter.
According to a Bloomberg article, Apple reported higher-than-expected sales in the first quarter of 2024 and forecast a resumption to growth in the current period, which raised hopes that the downturn was abating. As a result, the company’s shares increased in late trading on Thursday.
Apple said in a statement on Thursday that its revenue for the fiscal second quarter, or the first of the calendar year, dropped 4.3% to $90.753 billion. However, analysts’ average forecast was for sales of $90.3 billion.
Apple has posted sales declines in five of the last six quarters, hurt by a sluggish smartphone market and headwinds in China.
Apple warned analysts in February that revenue in the first quarter would decline about 5% from the same period a year earlier.
Bloomberg exposed that Apple shares gained more than 7% in after-market trading Thursday following the release of the financial report. Shares had fallen 10% to $173.03 this year through today’s close.
