Apple has announced an unprecedented US$110 billion buyback.

Apple Inc. revealed its quarterly financial results this week, outperforming modest market expectations and announcing an enormous US$110 billion stock buyback initiative. 

This news pushed Apple shares up by 6 per cent in extended trading on Thursday.

Despite a 4 per cent drop in fiscal second-quarter revenue to US$90.8 billion, Apple's performance surpassed the average analyst forecast of US$90.01 billion. 

The decrease in revenue did not deter investor enthusiasm, particularly as Apple disclosed plans to enhance its cash dividend by 4 per cent alongside the substantial buyback, marking the largest in the company's history.

Tim Cook, Apple’s CEO, expressed optimism about the company’s prospects, predicting a return to revenue growth in the coming quarter. 

He anticipates low single-digit growth in total revenue for the current quarter ending in June. 

Analysts had projected a slightly higher growth rate of 1.33 per cent leading to revenue of US$82.89 billion.

Apple’s CFO, Luca Maestri, shared further positive expectations with analysts, forecasting double-digit growth in services and iPad revenues for the fiscal third quarter, with projected gross margins between 45.5 per cent and 46.5 per cent.

However, the tech giant is not without its challenges. 

Apple faces strong competition from rivals such as Samsung Electronics, which have recently introduced devices designed to integrate advanced AI chatbots. 

Additionally, regulatory pressures are increasing, with a new European law impacting Apple's lucrative services business, including the App Store. 

In the US, the Department of Justice has accused Apple of monopolising the smartphone market.

In a detailed breakdown of sales by product, iPhone revenue stood at $45.96 billion, slightly below the expected $46 billion. Sales in Greater China saw a decline of 8.1 per cent, but still exceeded forecasts.

Cook also revealed significant investments in AI.