Apple's Earnings Prove the Tech Giant is More Than Just Phones

Apple's Earnings Prove the Tech Giant is More Than Just Phones

Apple posted revenue for its March quarter of $61.1 billion, an increase of 16 per cent from $52.9 billion previous year. Apple said it will also raise its quarterly dividend by 16% to 73 cents per share in its largest jump in six years. Apple sells more iPhone X units every week than any other iPhone model, and that's been the case since the launch of the device back in November.

The company, flush with a huge cash pile on strong earnings enhanced by the USA tax cut plan of 2017, announced $100 billion in new share buybacks plus a 16% boost to its quarterly dividend.

Reports of weak iPhone sales in the run-up to the earnings proved to be true, with Apple shifting "just" 52.2mln units in the quarter, behind analysts' already-lowered estimates of 52.5mln.

Although it didn't break out specific sales figures for the iPhone X, Apple CEO Tim Cook told investors that this was "the first cycle we've ever had where the top of the line iPhone model has also been the most popular". This includes an increase of more than 20% in revenue from Greater China and Japan. Some analysts suggested the iPhone X's price point was causing "sticker shock" among consumers.

Looking forward to the third quarter, Apple expects revenue between $51.5 billion and $53.5 billion. Services revenue grew 31% year over year and revenue from "Other Products" increased 38%. The company has managed to beat Wall Street's expectations on the iPhone X front, according to the results.

Revenue also rose 16 percent to $61.1bn (£44.7bn) from $53bn ($38.9bn) a year earlier, ahead of market expectations.

More news: Get to know Seahawks first-round draft pick, Rashaad Penny

Apple closed on Tuesday at a value of $169.10 but was able to reach almost $175.00 within a few hours of the quarterly results being posted.

The current buyback campaign will be $US210 billion when it ends in June.

The stock climbed 3.6 percent in after-hours trading.

Luca Maestri, Apple's chief financial officer, added: "With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our United States operations and work towards a more optimal capital structure". If Apple can continue to put its extra capital to work by repurchasing more shares, he predicted that the stock will easily move 7% higher in the next year.

iPhone's second quarter performance capped a tremendous fiscal first half with $100 billion in iPhone revenue, an increase of $12 billion over last year, setting a new first half record and achieving our highest first half growth rate in three years.

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