Apple Delivers Another Blockbuster Quarter — Surprise
- Author: Carolyn Briggs May 02, 2018,
May 02, 2018, 16:04
Apple also boosted its capital return program by $US100 billion, with repurchases from the increase set to begin in the June quarter, and said it bought $US23.5 billion of stock back in the March quarter, a sign that it is bringing back most of its hundreds of billions of dollars in cash to the United States.
Apple shares rose 3.4% to US$174.85 after the bell in NY.
Apple's iPhone X isn't going anywhere soon, at least according to the company's latest financial reports. Sales came in at $61.1 billion, slightly above estimates. Not only is that some $2 billion more than what Apple's services generated previous year, it's an all-time record for the company according to CFO Luca Maestri.
Munster rated the quarter as an "A-", and said it wasn't a "blow-out quarter", but there's still room for positive growth. "It was a solid quarter".
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.
Analysts were predicting 53 million in sales, but this quarter it was a meager 52.2 million.
Average selling prices for iPhones were $728, compared with Wall Street expectations of $742.
Apple on Tuesday shook off worries that its $1,000 iPhone had failed to live up to the hype - but sales of the world's most valuable company's most valuable product are slowing, and Apple has announced a plan to buy its way out of trouble. In Japan, Apple saw a revenue growth of 22 percent while in the rest of Asia Pacific, the revenue was up by around 4 percent.
As for the analysts who predicted that the iPhone on the brink of death? However, Apple offers an increasingly broad array of other iPhones to suit different budgets.
"The iPhone X is a beloved product".
In a recent conference called with analysts by Apple CEO Tim Cook, he said that the company's revenue between January and March was at $61.1 billion, Tom's Guide reports. He was unconcerned about the high price of the iPhone X. "And it's how we feel about it", Cook said in response to an analyst question about the X sales. Maestri said the iPhone X was the top-selling model in the quarter.
On Tuesday, the company committed to spend an additional $100bn on share repurchases. That comes on top of an existing $210 billion buyback program to be completed during the fiscal third quarter.
Along with the new authorization, the Board of Directors has also approved a 16% increase in the company's quarterly dividend.
Apple beat its Q2, 2017 performance when it has shipped 50.7 million iPhones.
Not all of Apple's hardware sales were static, though. The company is expanding these offerings with original videos and a news subscription service. But these companies do not gain from Apple's expanding services offerings. Overall, Other Products generated $3.9 billion in the second quarter, up about 45% from a year earler. Cook also noted that Apple Watch sales are up 50 percent year-over-year.
There had been increasing concerns about iPhone sales in the run-up to the results. Operating expenses for the quarter will be between US$7.7 billion and US$7.8 billion. "Many of those were sold into emerging markets", he said.
FBN's Susan Li on Apple's upcoming second-quarter results and outlook.