Apple announces largest-ever $110 billion share buyback as iPhone sales drop 10%

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Apple shares climbed 7% in extended trading on Thursday after the iPhone maker reported quarterly earnings that topped estimates and announced an expanded stock buyback program. Apple announced that its board had authorized $110 billion in share repurchases, a 22% increase over last year's $90 billion authorization. It's the largest in history, ahead of Apple's previous repurchases, according to data from Birinyi Associates. However, overall sales fell 4% and iPhone sales fell 10% year-over-year during the quarter, which Apple attributed to a tough comparison versus last year. Here's how Apple did versus LSEG consensus estimates in quarter ended March 30: EPS : $1.53 vs. $1.50 estimated : $1.53 vs. $1.50 estimated Revenue : $90.75 billion vs. $90.01 billion estimated : $90.75 billion vs. $90.01 billion estimated iPhone revenue : $45.96 billion vs. $46.00 billion estimated : $45.96 billion vs. $46.00 billion estimated Mac revenue : $7.5 billion vs. $6.86 billion estimated : $7.5 billion vs. $6.86 billion estimated iPad revenue : $5.6 billion vs. $5.91billion estimated : $5.6 billion vs. $5.91billion estimated Other Products revenue : $7.9 billion vs. $8.08 billion estimated : $7.9 billion vs. $8.08 billion estimated Services revenue : $23.9 billion vs. $23.27 billion estimated : $23.9 billion vs. $23.27 billion estimated Gross margin: 46.6% vs. 46.6% estimated Apple did not provide formal guidance, but Apple CEO Tim Cook told CNBC's Steve Kovach that overall sales would "grow low single digits" during the June quarter. Apple posted $81.8 billion in revenue during the year-ago June quarter and LSEG analysts were looking for a forecast of $83.23 billion. On an earnings call with analysts, Apple CFO Luca Maestri said that Apple expected double-digit year-over-year percentage growth in iPad sales in the current quarter. He added that he expected Apple's services division to continue growing at about the rate it had been in the past two quarters. Apple reported net income of $23.64 billion, or $1.53 per share, down 2% from $24.16 billion, or $1.52 per share, in the year-earlier period. Overall sales fell 4% in the March quarter. Cook told CNBC that year-over-year sales suffered from a difficult comparison to the year-ago period, when the company realized $5 billion in delayed iPhone 14 sales from Covid-based supply issues. "If you remove that $5 billion from last year's results, we would have grown this quarter on a year-over-year basis," Cook said. "And so that's how we look at it internally from how the company is performing."