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Apple shares rise as revenue falls less than feared despite rocky quarter

Executives project optimism about coming months after earnings report surpasses downbeat expectations

Apple shares came close to wiping out their year-to-date losses on Friday after the iPhone maker exceeded analysts’ downbeat expectations for quarterly revenue and executives projected a positive outlook for the year despite a bumpy start to 2024.

The tech company on Thursday reported revenue of $90.75bn in the first three months of 2024, down 4 per cent from the year before but slightly ahead of consensus estimates for $90.3bn. Sales of its flagship iPhone were down 10 per cent from the year before to $46bn, compared with $51.3bn the previous year, and sales in China — a region on which investors have been particularly focused — fell to $16.3bn for the quarter, against $17.8bn a year ago.

But investors had feared this quarter could have been worse, and Apple’s shares rose about 6 per cent on Friday after the earnings release. The company also announced another $110bn in share buybacks and raised its quarterly dividend by 4 per cent.

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