Apple Inc. which is popularly considered as one of the big four technology firms along with Amazon, Google, and Facebook had once again made headlines when it had surpassed its expectations as the stock of the firm soared.
Apple’s own guidance suggested that it might be down from the same time last year.
On January 2, Apple had estimated that its revenue from crucial holiday quarter would be $7billion loss then its earlier projections. Apple believes that this is attributed to the low iPhone sales in China, which is the reason for the revenue shortfall.
As the Apple took a subtle decision to cancel a previously announced product, made a settlement with Qualcomm and paid billions to them, and also held an invite-only event without any reason. The event failed to launch any new products and was missing some crucial details on its products.
Yet, Apple stocks kept on increasing.
It is that time of the year when Apple will announce its plans to spend on its capital return. Analysts and investors will be eagerly looking toward their statement. Last year Apple had announced that it might spend $100 billion on buybacks and dividends by the upcoming year. It would be considerable to note what viable steps Apple Inc. manages to take this year.
Since Apple had pre-announced its disappointment in the revenues of the first quarter, the stock was up over 43%. Several Wall Street analysts had to upgrade their price targets for Apple’s stocks.
Stocks rising or not, it seems it is always a win-win situation for Apple Inc. as lower stock price would mean that they can buy their stocks more cheaply. In fact, Apple is already buying back bulk of its stocks from the market; a slight dip in the stocks won’t affect much to the company.