Apple reveals $100 billion buyback plan

03 May, 2018, 12:08 | Author: Sidney Guerrero
  • Apple earnings jump on healthy iPhone sales

While iPhone sales accounted for 61 percent of Apple's total revenue, its services business, which includes iTunes, the App Store and Apple Music accounted for an ever increasing slice of its revenue at 15 percent.

Tim Cook reports iPhone X has been Apple's best selling iPhone week after week during its March quarter, just as they did following its launch in the December quarter.

Total sales of iPhone models during the January-March period dropped 32 percent to 52.2 million units from 77.3 million units in the October-December period previous year.

The company exceeded analyst expectations in per-share earnings and revenues, lifting shares in after-hours trading.

The Street has gone into "full panic mode" ahead of next week's Apple (NASDAQ:AAPL) earnings report, according to GBH analyst Daniel Ives.

Surprising everyone, Apple recorded its "best-ever" March quarter. Recent news reports suggested there had been weak demand for the pricey handset, but the company said this was the first cycle that its top-of-the-line had also been its most popular, outselling the iPhone 8, 7, 6S, and SE.

From the inception of its capital return program in August 2012 through to March this year, Apple said it had returned $275bn to shareholders, including $200bn in share repurchases.

More news: UK: 450000 women missed out on breast cancer test

Every sentence in that quote is aimed at Apple's naysayers, which have spent the past few weeks raising questions about the success of the iPhone X, Apple's viability in China, and whether the firm has finally peaked.

That came on top of $22.8 billion in buybacks executed in the prior quarter, "a record amount for any issue in any quarter", analyst Howard Silverblatt said.

The company reported revenue of between $51.5 billion and $53.5 billion.

Cook also highlighted the Chinese market as a big iPhone X driver. The company approved a new $100 billion share repurchase authorization and increased its quarterly dividend by 16% to 73 cents a share. Revenue from Apple's Services division, meanwhile, increased by 31% year over year.

Luca Maestri, Apple's chief financial officer, said: "Our business performed extremely well during the March quarter, as we grew earnings per share by 30% and generated over $15bn in operating cash flow". The iPhone gained share in the quarter based on IDC's latest estimates for the global smartphone market.

Counterpoint Research reported that Apple's share in premium segment smartphones plunged significantly in the first quarter of 2018 by a massive 55 percent.

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