Apple Announces $100 Billion Share Buyback After Beating Profit Expectations

03 May, 2018, 15:37 | Author: Patty Aguilar
  • Apple earnings jump on healthy iPhone sales

While that's not quite as high as last quarter's $796 ASP, it far exceeds last year's $654 and is a strong sign that iPhone X sales aren't almost as dismal as analysts expected. Once again, the Mac fell in sales for the quarter, this time 3 percent year over year in units, though it held steady in revenue.

Apple stock is up $6.72, or nearly 4%, at $175.82, in late trading. It also sold more iPads year on year 9.1 million compared to 8.9 million during the same period in 2017.

Greengart pointed to the services category's growth quarter-over-quarter, which is a tough feat to pull off considering Q2 follows the holiday quarter, where Apple typically puts in its best performance. Cook didn't say how much wearables like Apple Watch, Beats headphones and AirPod earbuds totaled, but said that such sales grew by 50 percent over the same period a year ago. Apple also predicted revenue of $51.5 billion to $53.5 billion in the June quarter, ahead of the $51.6 billion Wall Street expected, and the share repurchases in the March quarter drove Apple's cash net of debt down slightly to $145 billion. However, Apple iPad's revenue rose by 6 per cent on an yearly basis, though it witnessed a 30 per cent sequential decline.

The services division continues to be one of its most lucrative, with a 31 per cent revenue growth year on year. That's up from $52.9 billion a year ago, though down from $88.3 billion on the last quarter.


It said revenue from Americas grew 17 percent while that from Europe jumped by 9 percent. It was up 22% in Japan. "I don't buy the view that the market's saturated", Cook said.

For his part, Tim Cook clarified that he is optimistic about Apple's growth in the new markets and that he sees great opportunity to convert mobile phone users to smartphones in these areas. Frankly, we're a little shocked that number hasn't dipped further considering the company's general lack of visible work on its computers. Customers aren't shying away from the iPhone X's bigger price tag either as it was the most popular iPhone sold in the country in Q2.

In addition, the tech innovator announced a $100 billion share buyback programme after reporting a $145 billion cash pile in the previous earnings report, following the changes to the U.S. tax system in 2017. It also announced 16 percent increase in quarterly dividend offered to shareholders.

"Recent corporate tax reform allows us to deploy our cash more efficiently", said Apple Chief Executive Tim Cook, on a conference call to discuss Apple's results.

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