Apple announces slow iPhone sales, but $100 billion for investors

Apple earnings jump on healthy iPhone sales

Apple rewards shareholders: It's buying back an extra $100 billion in stock and raising its dividend

Apple shares closed higher in the US Tuesday after reporting a 16% increase in quarterly revenues amid its best ever second quarter performance.

In a conference call with investors, Cook made no direct comment about recent rumors regarding variations on the iPhone X, but did say that Apple is "going to continue to provide different iPhones for folks to meet their needs", which some may take as a hint that new designs are on the way.

Wall Street was also cheered by the announcement of $100bn in share buybacks, doubling the reward for investors compared to the same period a year ago.

With a mountain of overseas cash suddenly freed up by the tax overhaul, Apple bought back $23.5 billion of its own stock in the March quarter, a record amount for any US company, according to S&P Dow Jones Indices, and it added $100 billion to its target for future repurchases. But Apple said that the iPhone X was the best-selling model in every week of the quarter - despite costing nearly $1,000 or £1,000. Apple also outlined its intentions to allocate an extra $100 billion for future stock repurchases.

"Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow", said Maestri.

Apple posted quarterly revenue of Dollars 61.1 billion for its fiscal 2018 second quarter ended March 31, 2018, an increase of 16 per cent from the year-ago quarter.

It said it expected expenses of between $7.7bn and $7.8bn, with other income of $400m and a tax rate of around 14.5%.

Apple revealed that services revenue crossed $9 billion for the first time.

Other wins included Apple's paid services, including its App Store, Apple Pay, Apple Music and iCloud Storage, totalling up to $9.2bn. Paid subscriptions surpassed 270 million, across services, which is an increase from the 100 million in 2017. By way of comparison, Apple during the same quarter a year-ago sold 50.7 million iPhones.

The iPhone X launched in November 2017 and starting at $1,000 and topping out at $1,150 it's Apple's most expensive handset ever. "We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan", Cook added. Cook said Apple set a new first-half record in India as well. "Over time, every phone sold will be a smartphone and so it seems to us that with that many feature phones being sold, that's a pretty big opportunity", the CEO told analysts. For instance, the iPhone 8, iPhone 8 Plus and Apple Watch Series 3 was launched in India just a week after it went on sale in the US.

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