Apple Announces $100 Billion Share Buyback After Beating Profit Expectations

  • Apple Announces $100 Billion Share Buyback After Beating Profit Expectations

Apple Announces $100 Billion Share Buyback After Beating Profit Expectations

"There's going to be a shift over the next few quarters and couple years where investors are less interested on what the iPhone numbers [are] in any given quarter", said Munster.

The expensive iPhone X had analysts anxious about long term demand amid a global smartphone slowdown, especially considering its initial lukewarm reviews.

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 a year ago. The figure, while a drop from the previous quarter's $88.2 billion in revenue, marked a 16 percent year-on-year increase, with a net income of $13.8 billion.

Apple achieved its best-ever quarter for the three months to March, posting a revenue of $61.1bn - a 16 per cent year-on-year (YoY) increase - for the second quarter of its fiscal year 2018. He called attention to an increase in inventory sitting around in Apple warehouses, suggesting low turnover - the high iPhone revenues depending merely on the high cost of the iPhone X.

CEO Tim Cook said Apple customers purchased the iPhone X - released November 3, 2017 - more than any other model each week in the quarter.

"We expect Apple to report an in-line March quarter, but are cautious into earnings on May 1 due to our belief that June quarter consensus estimates need to be revised lower", analyst Katy Huberty wrote prior to Apple's report.

But the company's third-quarter outlook of $51.5 billion to $53.5 billion compares favourably to analyst forecasts for the period.

"We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan".

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 United States tax system in 2017.

The company's Q3 2018 guidance ties in with high expectations of many analysts, and while Apple has a history of surpassing expectations, the company is facing a steady rise in competition in markets like China and India that are seeing the emergence of local players.