Apple reported a 4 percent year-on-year drop in revenue to $90.8 billion for the quarter ending March 30, beating analyst expectations of $90.1 billion.
The tech giant's earnings report also revealed a decline in iPhone sales at $45.96 billion, a drop of 10 percent from the same time period last year, against Wall Street estimations of $46 billion.
Despite the slump in sales, Apple's shares rose in after-hours trading, and the company announced a record $110 billion stock buyback program—the largest in U.S. history. This was seen by some analysts as a way of appeasing investors after months of Apple's shares underperforming the market.
For Apple's current quarter, which ends in June, CEO Tim Cook expects "low single digit" growth, according to Reuters.
During an earnings call, CEO Tim Cook stated that Apple would be making "significant investments" in generative AI. This follows similar moves by tech giants including Amazon, Alphabet, Microsoft and Meta. Cook described AI as "a very key opportunity" for the company and said he was "very bullish" about Apple's prospects in this space.
This week, Apple announced eight small language models designed to work on consumer devices.
Cook also addressed Apple's performance in China, where demand has weakened. Sales in China were down 8.1percent to $16.37 billion, a smaller fall than analysts had expected.
However, Apple faces a number of regulatory challenges in the coming months, including high-profile antitrust lawsuits in the U.S. and Europe.
The U.S. Department of Justice has accused the company of engaging in "broad, sustained, and illegal course of conduct" in seeking a smartphone monopoly. The EU has also fined Apple for blocking competition from music streaming services like Spotify through restrictions on the App Store.
The company's share price has fallen in recent months from an all-time high of about $199 in December to around $170. However, prices rose prior to the earnings report, and investors appear to have responded positively to the latest results, with Apple shares rising in after-hours trading.
This article originally appeared on our sister site Computing.
