San Francisco, California: Apple Inc. shares surged after the tech giant exceeded analysts’ expectations for revenue in the first quarter of 2024 despite facing challenges in the Chinese market. Although revenue dipped by 4% to $90.75 billion compared to the previous year, it still managed to beat consensus estimates of $90.3 billion. Apple also unveiled a $110 billion share buyback plan and enhanced its quarterly dividend by 4%.

Notably, the services revenue, encompassing the App Store, Apple TV, and Apple Pay, experienced a robust 14% growth, reaching a record $23.9 billion. On the other hand, income from its flagship product, the iPhone, dropped to $46 billion from $51.3 billion the year before. Diluted earnings per share stood at $1.53, slightly higher than the expected $1.50 but lower than the previous year’s $1.52.

Despite a 7% decline in its stock earlier this year, Apple’s shares soared over 7% in after-hours trading following the earnings report. Gene Munster of Deepwater Asset Management noted that the company’s solid performance is setting it up for future growth in the upcoming quarters, attributing the stock surge to this positive outlook. The larger-than-expected share buyback also signals Apple’s confidence in its future growth trajectory.

Apple’s revenue in China saw a decline with net sales totaling $16.3 billion for the quarter, down from $17.8 billion the previous year. Amidst growing competition from Chinese smartphone manufacturers, Apple faced a 19% decrease in iPhone sales in China during the first quarter. Despite these challenges, Chief Financial Officer Luca Maestri emphasized that iPhone sales remain strong in what he described as the world’s most competitive smartphone market.

Furthermore, Apple’s recent legal troubles, including an antitrust lawsuit from the US Department of Justice and an investigation by the European Union, have added to the company’s challenges. Despite these hurdles, analysts remain optimistic about Apple’s future, anticipating a potential boost in smartphone and laptop sales through the introduction of generative artificial intelligence features.

Looking ahead, Apple executives are gearing up for a busy period of new product releases, including the launch of the Vision Pro headset and a rumored new iPad model. With Chief Executive Tim Cook’s promise to unveil more details about the company’s work in artificial intelligence later this year, Apple is positioning itself for further innovation and growth in the ever-evolving tech landscape.