Apple opens higher as upbeat earnings guidance quells iPhone X fears

Apple logo. Reuters
Image used for representational purpose

03 May, 2018

Apple bought $23.5 billion of stock in the March quarter, and said it plans to hike its dividend 16 percent, compared with a 10.5 percent increase a year ago.

Cookalso said, "Apple now has 270 million paid subscribers across all of its applications and services as of the end of the March quarter, up by 100 million from the same period a year earlier".

Apple Inc. reported its second-quarter results for 2018 on Tuesday, and contrary to analyst expectations that the company's newest, and most expensive, flagship device didn't live up to the hype, the numbers indicate otherwise.

Apple posted revenue for its March quarter of US$61.1 billion, up from US$52.9 billion previous year. The firm believes that Apple's shares have to digest stronger-than-anticipated results after absorbing significant reductions in iPhone unit expectations that it believes is likely to have a tail through the year and the launch of the iPhone X V2.

"I think it's one of those things where a team wins a Super Bowl", explains Cook.

Other products that the company offers like Apple watch, Earphones and Homepad also saw an increase in its sales by thirty-eight percent.

The company's been hard at work spending money on buybacks, too: just this last two quarters, the company repurchased $33.6 billion of its stock, more than the entire $33 billion it bought back in fiscal 2017.

The performance has been incredible for Apple in the Indian market after the reports reflected a 20% rise in revenue, while the strongest stays in Greater China region where the growth rate of 21% year-on-year is seen, in the last 10 quarters.

For the full fiscal year, which ends September 29, Apple is now seen selling 20.3 million smartwatches. "This is the first cycle that we've ever had where the top of the line iPhone model has also been the most popular", Tim Cook said during the company's earnings call.

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But the key number everyone was looking to was the one that has the greatest impact on AAPL stock: iPhone sales.

Overall, iPhone revenues rose 14%, to $38.03 billion.

"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, services and wearables", Cook said in a statement.

Again, more Apple analyst reports soon will become available. So it is not worth to expect that Apple will decrease prices anytime soon.

Some Wall Street analysts also downgraded their iPhone forecasts ahead of Tuesday's earnings report.

Cook stressed that the smartphone market is like the best market for a consumer product company in the history of the world. We had all-time record revenue ... all of which are a powerful illustration of the importance of our huge active installed base of devices and the loyalty and engagement of our customers.

"My own view is that China and the US have this unavoidable mutuality where China only wins if the USA wins and the US only wins if China wins", Cook said."So I'm a big believer that the two countries together can both win and grow the pie, not just allocate it differently and so that's our focus over time I think that view will prevail".

Apple has been seen as vulnerable to in the wake of intensifying rhetoric and threats between Washington and Beijing that have raised worries of a trade war.

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