Apple has announced a historically large share buyback program in connection with its results announcement on Thursday. The technology company’s stock rose sharply on Wall Street on Friday after reporting better-than-expected results for the first quarter of the year and announcing the historic share buyback.
Apple’s net profit in January-March weakened compared to the same period last year, but still exceeded expectations at $23.6 billion. Despite a decline in turnover in the Chinese market, Apple’s first quarter results were better than expected. In recent months, concerns have been raised about Apple losing its foothold in China, where it traditionally had a strong market position. However, Apple’s strategic moves with the share buyback program aim to reinforce its position in the global market.
At 17:50 Finnish time, Apple’s stock was up 6.8 percent. Before Friday, the value of Apple’s shares had fallen by about ten percent this year. At the start of trading, Apple’s share price was up almost seven percent, with the company’s market value potentially increasing by $170 billion if the price rise continues.
The positive momentum in the first quarter results and the announcement of the share buyback program have led to a notable increase in Apple’s stock price. Amidst challenges in the Chinese market and competition from local brands like Huawei, this move by Apple is seen as a strategic effort to maintain its dominance in global markets.
In conclusion, Apple’s historically large share buyback program has contributed significantly to its stock price increase on Wall Street after reporting better-than-expected results for Q1 2021. Despite facing challenges in some markets and competition from other brands, this move by Apple shows that it is committed to maintaining its position as a leading player in technology industry worldwide.