IPhone X boosts Apple revenues

Apple logo. Reuters

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 past year.

Average selling prices for iPhones were US$728, up more than 10 per cent from US$655 a year ago, suggesting Apple's iPhone X, which starts at US$999, has helped boost prices.

San Francisco - Apple lavished cash on its shareholders like no company in history in the first three months of 2018 and it intends to keep doing so, making the iPhone maker's investors the clearest winners yet from 2017's sweeping United States corporate tax cuts.

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

The $US1,000 iPhone X - Apple's most expensive iPhone - was the best-selling phone "every week" during the quarter, Cook said.

Revenues at Apple's services business that includes Apple Music and the App Store jumped nearly a third to $9.1bn.

"We believe tariffs at the end of the day are a tax on the consumer", Maestri said.

"Apple can support the stock as the investment thesis evolves from one of product cycle to services-led growth", wrote Dan Morgan of Synovus Trust.

But the company relied more on cheaper, earlier-generation products to drive sales, rather than on its flagship iPhone X.

Apple's iCloud online storage business revenue rose 50 percent in the most recent quarter, likely with high margins.




Apple had a record sale of 52.2 million iPhone, although according to FactSet a firm which performs market research the sales is slightly below what has been estimated. Apple suppliers had record inventory of chips due to lower sales of a high-end phone.

Cook cited the biggest growth in Japan (22%), China (21%) and America (17%) and Europe (9%). Citigroup reiterated a "focus list" rating and issued a $142.20 price target (up from $100.00) on shares of Apple in a research report on Wednesday. As a result, analysts had expected Apple to repatriate most of its $252bn in cash overseas.

Apple's quarterly results topped Wall Street forecasts, which dropped ahead of the report on growing concern over the iPhone.

Buoyed by Asian growth, Cook reveals that India is the next market for the tech giant to set up retail stores in.

Loup Ventures analyst Gene Munster expects iPhone shipments to remain flat or rise up to 5 percent each year over the next four years.

Shares of Apple were up roughly 3% in after hours trading on Tuesday in the U.S. after the company reported fiscal Q2 earnings that beat analysts' revenue and profit targets, and forecast stronger-than-expected results in the current quarter.

Apple announced its second-quarter earnings of fiscal 2018 late Tuesday, edging above consensus analysts' estimates.

"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".

Given the size of the programme, Apple has not placed a termination date on it.

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