Sci-tech

Apple revenue up as iPhone X continues to ring up sales

Apple revenue up as iPhone X continues to ring up sales

On Tuesday, those investors learnt that they are in line for a big chunk of the money.

Apple also announced $100 billion in additional stock buybacks.

But investors were cheered by progress elsewhere - on confirmation the company was to reward shareholders through proceeds it was repatriating to the U.S. following tax reforms announced by Donald Trump. Share buybacks, which are reaching record levels, are great for investors, including executives and employees, because they reliably lift stock prices by limiting the supply of shares forsale.

'The share price popped on the release of its headline subscriber and sales and profit numbers, but then gave back all of those gains and more once analysts took a closer look at cash flow and the balance sheet, ' he explained. This repurchase authorization permits the iPhone maker to purchase up to 11.9% of its stock through open market purchases. Apple CFO Luca Maestri said the X was Apple's top seller and rejected the idea that it was too expensive.

We've "been seeing Apple shifting from a device company to a services company", said Michael Obuchowski, chief investment officer for Boston-based Apple shareholder Merlin Asset Management.

Instead, the popularity of the iPhone X helped Apple to is best-ever second quarter, with revenues weighing in at $61.1 billion, up by 15 per cent on the same period a year ago, and well ahead of analysts' consensus expectations.

Apple said Tuesday afternoon it would buy back $100 billion in shares and raise its quarterly dividend 16%, to 73 cents a share from 63 cents a share. So we continue to put great energy there.

Millennial investors seem to be expecting an post-earnings pop for Apple.

More news: Twitter expands its interest in video and news

The company's net income for the second quarter was United States dollars 13.8 billion, up from USD 11 billion a year ago.

Sales of 52.2 Million handsets, in opposition to a target of 52.3 Million by Wall Street, was a relief and up from last year's 50.7 Million, as per the media report. Total sales rose 16% to $61 billion.

Apple Inc lavished cash on its shareholders like no company in history in the first three months of the year and it intends to keep doing so, making the iPhone maker's investors the clearest winners yet from last year's sweeping US corporate tax cuts.

Technology was the best performing S&P sector by far, up 1.5 per cent - with Apple being one its strongest stocks.

That helped the company earn almost $14 billion in its fiscal second quarter, a 25 per cent increase from a year ago.

Comprised of everything from sales of videos to Apple Music subscriptions and iCloud online storage space, the unit has more room for growth, Steven Pelayo at HSBC Global Research noted.

On whether the Indian market was saturated, Cook said: "I do not buy the view that market is saturated". At one point, he provided a laundry list of accomplishments that makes him "very bullish on Apple's future" - including dramatic growth in the services business, a "huge" installed base of active devices, and "the best pipeline of products and services [Apple's] ever had".

So the fall in the iPhone ASP suggests that there is a limit to the price that consumers are willing to pay for a smartphone.