Apple beats profit expectations, plans $100 billion cash return boost

WION Web Team New Delhi, Delhi, India May 02, 2018, 08.27 AM(IST)

File photo. Photograph:( AFP )

The quarterly results of Apple escalated more than the expected Wall Street forecast as the company beat revenue and profit expectations in its March quarter 

The results revived after Apple sold 62.2 million iPhones.The sales also promised $100 billion in additional stock buybacks.

The results revived after it had experienced a drop following growing concern over the iPhone.

The company was also more optimistic about current quarter where its shares drove up 3.6 pe rcent to $ 175.25 after hours.

Apple was being given warnings about smartphone weakness and that the company was becoming too reliant on the iPhone and was not responding to demands of computers, tablets and smartphones.

The iPhone sales this year accounted for 52.2 million against the Wall Street target of 52.3 million. This was more than last year's sale which crossed 50.7 million.

The company brought $23.5 billion of stock in the March quarter and it planned to hike its divindend 16 per cent.

Apple posted revenue for its March quarter of $61.1 billion, up from $52.9 billion last year. Wall Street expected $60.8 billion

Average selling prices for iPhones were $728, compared with Wall Street expectations of $742. The figure is up more than 10 per cent from $655 a year ago, suggesting that Apple’s iPhone X, which starts at $999, has helped boost prices.

Profits were $2.73 per share versus expectations of $2.68 per share, as of Monday, and up from $2.10 a year ago.

Apple’s services business, which includes Apple Music, the App Store and iCloud, posted $9.1 billion in revenue compared with expectations of $8.3 billion.

 

(With inputs from Reuters)