Facebook
Twitter
Shares of Apple are falling after the company reported quarterly results.
Even the most valuable company isn’t immune to the coronavirus outbreak.
The pandemic has hit the world’s most profitable smartphone maker in three ways:
- Sales of iPhones in China dropped significantly in February
- Closure of iPhone manufacturing factories disrupted the supply chain
- Apple’s sales in the U.S. plunged in March
Apple said its quarterly revenues were essentially flat at $58 billion. Meanwhile, Apple earnings were down slightly for the year.
Apple’s lower-priced iPhone SE was released in late April. The $399 smartphone has received a positive response and strong sales.
Apple CEO Tim Cook is optimistic about the company’s long-term prospects. Yet the company was unwilling to provide financial guidance for the second quarter of 2020.
“There was a significant, very steep fall-off in February. That began to recover some in March, and we’ve seen further recovery in April. So, it leaves us room for optimism,” Cook said.
Apple Prepares for 5G iPhone Launch: Click here for details on Apple’s secret 5G supplier.
However, the company is viewing the current situation as temporary.
Rewarding shareholders remains a top priority for Apple. The company is increasing its quarterly dividend by 6%.
Apple is also adding $50 billion to its share repurchase plan. The existing plan has $40 billion available for buybacks.
That brings the total potential stock buyback to $90 billion.
Investors remain optimistic about Apple plan to release new iPhones this fall.
The company would typically release new iPhones in September. Yet it’s already looking like that’ll be pushed back by four weeks.
Apple’s iPhones are assembled in China. Those factories are now re-opening and producing phones.
However, the shutdown disrupted Apple’s entire supply chain. And that’s likely to cause a slight delay in the release of the new iPhones.
Several of Apple’s new iPhones are expected to have capability for fifth-generation wireless – known as 5G. It’s expected that these new phones – with faster wireless – could encourage consumers to upgrade their phones.
This iPhone upgrade super cycle was the key reason that Apple stock surged in 2019.
Right now, the company is pushing toward the new iPhone launch.
The final four months of 2020 will be crucial for Apple. And it all hinges on this new 5G technology.
The 5G Gold Rush is getting started right now.
Click here ASAP for urgent details (before it’s too late).
Yours in Health & Wealth,
Ian Wyatt