Apple has announced that it will be buying back $110 billion worth of its own shares, marking the largest share buyback in the company’s history. This decision comes as the tech giant faces a 10% drop in iPhone sales.
Apple’s CEO, Tim Cook, during the company’s quarterly earnings call on Wednesday. Cook highlighted the success of the iPhone 12 lineup and the continued growth of the company’s services business. However, he also acknowledged that iPhone sales had declined compared to the previous year.
“We are confident in Apple’s future and continue to see tremendous opportunities ahead,” Cook said. “By repurchasing $110 billion of our own shares, we are demonstrating our commitment to creating long-term value for our shareholders.”
The share buyback is part of Apple’s ongoing capital return program, which aims to return value to shareholders through dividends and share repurchases. Apple has returned over $430 billion to shareholders since the program began in 2012.
Apple also announced a 7% increase in its quarterly dividend, bringing the dividend payout to $0.22 per share. This marks the 10th consecutive year that Apple has increased its dividend.
Apple continues to face challenges in its iPhone business. The company has been grappling with supply chain issues and a global chip shortage, which have impacted iPhone production and sales. In addition, the ongoing COVID-19 pandemic has led to economic uncertainty and reduced consumer demand.
Apple remains optimistic about its future prospects. The company recently launched a number of new products, including the iPad Pro, AirTag, and Apple TV 4K. Apple is also rumored to be working on a number of new products, including augmented reality glasses and a self-driving car.
Apple’s decision to buy back $110 billion worth of shares demonstrates its confidence in the company’s long-term prospects. By returning value to shareholders and investing in new products and services, Apple is positioning itself for continued growth and success in the years to come.
