The iPhone maker is raising its quarterly dividend by 16 percent to 73 cents per share, matching the largest increase since Apple restored the payment under shareholder pressure six years ago. The iPhone X was launched on the very same day as the global launch. “That’s how I see iPhone X”.
Overall results are looking good for Apple, where none of the products showed a decline in revenue.
This growth was largely credited to the iPhone, with Apple flogging 52.2 million smartphones during the three-month period, up three per cent on a year ago. Apple announced revenue from Greater China market grew 21 percent during the second quarter. Apple has still not updated its Mac line so far in this year.
Coming to services, Apple’s revenue was up 31 per cent in this segment and wearables were up nearly 50 per cent.
The firm’s revenue hit a record for the March quarter, which follows the Christmas rush and is traditionally one of the company’s weaker periods.
Apple beat its Q2, 2017 performance when it has shipped 50.7 million iPhones.
He said: “We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables”. The iPhone X seems to be a victor for Apple, despite doubts about the price and performance.
Cook added some additional detail about iPhone X sales when asked about the sustainability of the iPhone X’s pricey $999 starting price.
Cook did not disclose how many of those sales were for the iPhone X, but said that it was the most popular mobile in China in the last quarter. Apple additionally made $9.2 billion in services, including sales on its App Store and Apple Music subscriptions, and $3.9 billion from “other” products, which includes its Apple Watch range. Cook also said that the iPhone X was the top-selling phone in China, presumably citing third-party statistics. Revenue from Apple’s Services division, meanwhile, increased by 31% year over year. However, Cook was happy to point out that sales of wearable devices jumped almost 50 percent on a year earlier, attributable at least in part to the launch of the first cellular Apple Watch toward the end of 2017. RBC analyst Amit Daryanani believes it will take Apple four to five years to deplete its cash reserves, assuming the company doesn’t make a huge acquisition.
He said that companies typically bought back stock only when they had extra cash that they would not reinvest otherwise, and that investors would spend that money elsewhere.