Microsoft Unveils $60 Billion Stock Buyback as Apple Faces iPhone Demand Concerns

Microsoft has announced a $60 billion stock buyback program, signaling a major return of cash to its shareholders. This buyback is one of the largest in the company’s history, matching previous highs. Additionally, Microsoft revealed a 10% increase in its quarterly dividend, further boosting investor returns. The announcement comes despite the company’s heavy investments in artificial intelligence and a slight deceleration in its Azure cloud computing arm’s growth in recent months.

Microsoft’s financial health remains robust, with its net income surging by 22% to $88 billion in the last fiscal year. The company currently holds over $75 billion in cash reserves, solidifying its position as one of the world’s leading tech giants. At present, Microsoft is valued at $3.2 trillion, placing it just behind Apple, which holds the top spot with a market value of $3.3 trillion.

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Apple Faces Pressure as iPhone 16 Demand Falls Short

While Microsoft’s announcement thrilled investors, Apple is facing challenges with its latest iPhone launch. Concerns over weaker-than-expected demand for the iPhone 16 have triggered a 2.8% drop in Apple’s stock. Early pre-order data from BofA Global Research indicates that global shipping times for the iPhone 16 Pro models are shorter than those of last year’s iPhone 15 Pro, a potential signal of waning consumer interest.

The decline in demand comes at a crucial time for Apple, as it relies heavily on its flagship product to drive revenue. The company’s recent market turmoil has caused concern among analysts, particularly as competitors in the smartphone market continue to make strides.