Apple's Buyback Program and Growth Potential Amid Sluggish Results

Weak results

Apple's fiscal second quarter of 2024, ended March 30, included record services revenue and record earnings per share (EPS). But net income is down, and sales are declining throughout Asia.

Potential growth on the horizon

There's no denying that Apple is lacking growth in its products segment. But the services segment continues to be a juggernaut, notching a 74.6% gross margin in the quarter compared to 36.6% for products.

Apple's backup generator

As the chart shows, Apple reduced its share count by more than a third over the last 10 years. That reduction helped the company grow EPS at a far faster rate than net income. Even at its current low pace of growth, Apple is still a cash cow that can grow earnings with buybacks.