Apple is expected to announce $90 billion in stock buyback and dividends in its latest quarterly report, states CNBC.
The report itself is expected to be relatively withdrawn compared to previous expectation-smashing reports, with the company already advising investors of a 5% revenue decline. However, the company remains one of the largest in the technology sector, and remains profitable.
Apple spent over $572 billion in repurchasing shares between 2012 and 2022, the most of any company globally. In comparison, Google parent company Alphabet came in second place, with $178.5 billion over the same period.
At present, Apple has $165 billion in cash compared to $111 billion in debt, representing a net profit of $54 billion, its lowest position in years.
Although investors are prepared for a low quarter, the company hasn’t offered any official guidance since the outbreak of COVID-19 in 2020 due to the uncertain market. However, Apple has offered data points about both the company’s overall sales and specific product lines.
A further decline?
Analysts have predicted a further year-on-year decline in Q3 2023, with an average prediction of $84.7 billion in revenue - a 2% increase from the current quarter.
Year-on-year declines are expected across Apple’s entire product line this quarter, including a projected 3.8% fall in iPhone revenue. Refinitiv estimates that overall the company’ sales fell 4.4% annually to $92.97 billion.
“The eventual outcome might be simply driven by F3Q guidance, where investors might be looking for assurance and visibility into limited downside despite a tough macro[economic climate],” said JPMorgan analyst Samik Chatterjee.
Repurchasing stock allows a company to consolidate power, and it’s important to note that despite a challenging market and regulatory changes worldwide, Apple remains profitable.
Last month, Apple emerged victorious in an antitrust appeal against Epic Games, however the repercussions of the case have given developers the means to circumvent the 30% commission fee charged by the company on App Store purchases. All eyes will be on the company's Worldwide Developer Conference next month where - if predictions are correct - they will reveal their first AR/VR headset, opening an entire new app marketplace and source of revenue.
