Business enterprise Highlights: Apple’s sales dip, tech stock rally
The Associated Press – en Español
Apple Inc.’s sales declined in 2021, according to the tech giant’s quarterly earnings report. Despite some potential optimism that the company’s new 5G iPhones could drive up sales, Mac and iPad sales decreased by 15%, while its flagship iPhones had 7% less year-over-year sales volume. Revenue fell 12% year-over-year to $89.6 billion, below Wall Street estimates of $92.7 billion.
Despite the sales dip, Apple’s stock rallied Monday, rising 4.7% in after-hours trading. Other tech stocks also rose, with the Nasdaq Composite Index up 2.6%. Despite the earnings report, investors continue to be optimistic about the technological prospects held by Apple’s new 5G iPhones and other products, fueling a rally among tech stocks throughout 2021.
In addition, Apple is also attempting to slash its corporate tax rate from 25.5% in 2020 to just 15.5% for 2021, largely due to a new tax break for so-called “repatriation” of its foreign profits. The company also says it plans to use extra funds to bring more of its high-end manufacturing back to the U.S., which could benefit its bottom line in the long run.
Overall, the news of a dip in sales for Apple isn’t sparking an all-out selloff, as investors remain confident in the long-term growth prospects of its new 5G iPhones and other tech products. It remains to be seen, however, if Apple can eventually turn its fortunes around and accelerate growth, as the tech sector overall is expected to remain a key driver of the economy in 2021. [ad_1]
Company Highlights: Apple’s profits dip, tech inventory rally The Affiliated Press – en Español