Apple reveals rare drop in revenue in latest results

Apple once again posted an, until now, rare revenue decline in its latest fiscal quarter, but said its overall business improved from the December quarter and sales of its iPhones were solid.

The results reported on Thursday were better than Wall Street’s muted expectations and Apple’s stock inched higher in after-hours trading.

The latest numbers come after the company in February posted its first quarterly revenue drop in nearly four years after pandemic-driven restrictions on its China factories curtailed sales of the latest iPhone during the holiday season.

Apple earned 24.16 billion US dollars (£19.2 billion), or 1.52 dollar per share, in the three-month period that ended April 1.

That was down slightly from 25.01 billion dollars (£19.9 billion), also 1.52 dollar per share, a year earlier.

Revenue fell 3% to 94.84 billion dollars (£75.4 billion) from 97.28 billion (£77.4 billion).

Analysts, on average, were expecting earnings of 1.43 dollars (£1.14) per share on revenue of 92.91 billion dollars (£73.9 billion), according to a poll by FactSet.

Apple said iPhone sales brought in 51.33 billion dollars (£40.8 billion) in revenue in the first quarter.

Analysts expected a more modest 48.66 billion dollars (£38.7 billion). Revenue in its key services division was 20.91 billion dollars (£16.6 billion), slightly above Wall Street’s estimates of 20.66 billion (£16.4 billion).

The company said its board has also approved a 90 billion dollar (£71.6 billion) share buyback programme and raised its regular quarterly dividend.

Shares of the Cupertino, California-based company climbed 1.93 dollars to 167.72 dollars (£132.98) in after-hours trading.