Apple in $100bn share buyback as more money returned to US

Apple in $100bn share buyback as more money returned to US

Apple reported its "best March quarter ever" on Tuesday, with CEO Tim Cook declaring that customers chose the iPhone X "more than any other iPhone each week" across the three months.

Despite the limited growth in the number of iPhones sold, Apple sales hit $61 billion for the quarter, an increase of 16% from the same period a year earlier, fueled by the higher price tag of the iPhone.

Apple reported healthy revenues, beating analyst estimates for its fiscal second quarter despite decreasing demand and production of its iPhone X smartphone.

Net income was also up to $13.8bn (£10.1 billion), compared with $11bn (£8bn) in the same period of 2017.

CEO Tim Cook said Apple customers purchased the iPhone X - released November 3, 2017 - more than any other model each week in the quarter. While the iPhone numbers represent slight growth for Apple, they don't match the performance some analysts and investors expected when the iPhone X launched a year ago. Sales of 52.2 million iPhones against a Wall Street target of 52.3 million was a comfort and up from 50.7 million previous year, according to data from Thomson Reuters.

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"Given our confidence in Apple's future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorisation and a 16 percent increase in our quarterly dividend".

Apple announced a $100 billion share buyback in its earnings call on Tuesday.

Operating expenses between $7.7 billion and $7.8 billion. That suggested the flagship iPhone X didn't perform as well as some anticipated when it launched past year.

"We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan", he added. HomePod sales weren't broken out and neither Cook nor CFO Luca Maestri had much to say about Apple's new smart speaker.

Mr Cook said Apple had the three top-selling phones in China and brushed aside concerns about how a brewing tariff fight between the U.S. and China, where many of its phones are made, could hurt the company. Meanwhile, Apple executives have said the iPhone X is the most popular phone in China. He said the ASP growth was "mainly driven by iPhone X", indicating the $1000 price point had worked in the company's favour. The services division includes revenue from products like App Store, Apple Music, iCloud, Apple Pay, Apple Care and other services. The company said yesterday that it had returned $275 billion in total capital to shareholders since 2012. "Apple can support the stock as the investment thesis evolves from one of product cycle to services-led growth".

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