- The sales of the iPhone manufacturer Apple’s stock price and the maximum number of their shares were announced on May 3. Apple shares traded at $184.76 on the New York Stock Exchange on May 3, up 6.78% from the previous day.
- Apple has faced criticism for its AI-related smartphones falling behind those of Samsung Electronics, while Google, Microsoft, and Meta lag behind other smartphones in terms of generative models. Apple’s “Turning the tables on AI” is drawing attention.
Apple‘s earnings fell by 4% in the first quarter, with sales expected to rise again in the second quarter. Expectations for future AI products are also high.
A sharp rebound in stocks
Apple’s stock price increase on May 3 was its largest surge since November 30, 2022. It rebounded to the $180 level for the first time in over two months since March 1. Market capitalization also rose to $2.85 trillion, bringing it one step closer to reclaiming the $3 trillion mark.
This surge is attributed to a substantial share buyback plan announced alongside the first-quarter earnings released on the previous day. Apple’s first-quarter sales dropped by 4 % compared to the same period last year, with iPhone sales declining by 10 %.
Nevertheless, both sales and net income surpassed market expectations. Furthermore, sales are anticipated to increase in the second quarter, alleviating market concerns regarding slowing growth.
In addition to this, Apple unveiled a plan to bolster stock prices through its largest share buyback program amounting to $110 billion. This represents a 22% increase from last year’s $90 billion and a 10% increase from the previous largest buyback of $100 billion in 2018.
Also read: Apple plans to use AI-focused M4 chip to change production lines
Apple’s turning point
Apple has heightened expectations for future sales growth by indicating the release of products equipped with artificial intelligence functions. Bank of America raised its target price from $225 to $230, stating, “iPhone sales are turning positive in China, and Generative AI features will drive a robust cycle for the iPhone.”
Also read: Apple CEO Tim Cook visits Vietnam to talk with local suppliers
Apple CEO Tim Cook also mentioned that he will unveil a significant plan. Apple intends to introduce a new iPad on July 7 and hold its annual Worldwide Developers Conference (WWDC) on October 10. Typically, the WWDC serves as the platform for introducing Apple’s new software strategy.
