Apple: 'Buyback King' looks to gain investor confidence with $90 billion plan

Apple's highly anticipated quarterly earnings report is set to release on Thursday.

While the company is expected to see a decline in revenue, it will still look to remind investors of its massive market power, as per a CNBC report.

The company is set to reveal how much its board has authorized it to spend on share buybacks.Analysts predict that the share buyback plan will be worth $90 billion. This move willhighlight the tech giant's massivecash reserves.

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This would also reaffirm Apple's position as the 'buyback king', having spent over $572 billion on share repurchases since 2012, more than any other company.

In comparison, Apple's main competitor in the buyback realm, Alphabet, has spent $178.5 billion on share repurchases over the past decade.

However, some analysts have been questioning Apple's buyback strategy. They suggestthat the company will work towards becoming net cash neutral in the future.

Cash neutrality is a situation when a company's cash pile will equal its debt, allowing the board to slow down the pace of its capital return.

What to expect from quarterly results

Meanwhile,investors are bracing for a weak quarter, even as official guidance remainsunknown.

As per reports, Apple has not provided official guidance since the Covid outbreak began. But management has constantly provided investors with data points about particular product lines and the company's total sales.

According to some estimates, sales will fall again this year in the June quarter.

Apple's sales are expected to fall 4.4 percent year-on-year, while analysts expect Apple's revenue in the third quarter to rise about 2 percent to $84.7 billion.

Notably, Apple continues to sell many products at good margins despite the expected decline.

The earnings report will take into account Apple's continued strength in the market, despite challenges such as decreasing Mac and iPad sales. The company's massive cash reserves and buyback program serve as a reminder of its position as a market leader and its ability to weather economic storms.

Apple'sdiversifying revenue streams

But there's more to Apple's financial story than share buybacks and dividends.

The tech giant is also expanding its financial services offerings, including its Apple Card and the recently announced Apple Savings account. The new account, launched in partnership with Goldman Sachs, promises a 4.15 percent annual return and no fees.

Apple is following the lead of other tech companies, such as Amazon and Google, which have also ventured into the financial services industry. Apple's move into banking comes as the tech giant seeks to diversify its revenue streams and reduce its reliance on iPhone sales.