Apple reports best ever second quarter financial results despite iPhone sales slump

Apple has said revenue in the third quarter was up 7%

Apple has reported its greatest ever second quarter monetary outcomes, easing analyst fears over iPhone X gross sales.

The know-how large reported income of $61.1bn (£44.9 billion) for the primary three months of the yr, up 16% on the identical time a yr in the past.

Apple shares surged in after-hours buying and selling in New York regardless of the world’s most dear listed firm lacking iPhone gross sales expectations in its newest outcomes.

The California-based agency which, like rivals, is below strain amid a slowdown in smartphone gross sales, stated it had shifted 52.2 million handsets in its second monetary quarter – up from virtually 51 million within the first three months of 2017.

The newest determine barely undershot analysts’ estimates, as did the typical iPhone promoting worth, which steered some discounting to assist offload shares as the worldwide market suffers from stiff competitors alongside weaker demand.

CUPERTINO, CA - SEPTEMBER 12:  Apple CEO Tim Cook speaks during an Apple special event at the Steve Jobs Theatre on the Apple Park campus on September 12, 2017 in Cupertino, California. Apple is holding their first special event at the new Apple Park campus where they are expected to unveil a new iPhone.  (Photo by Justin Sullivan/Getty Images)
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Apple CEO Tim Cook dinner stated iPhone X gross sales outperformed all different Apple fashions within the final quarter

Apple had been seen as being below specific strain as rivals undercut costs for its prime iPhone fashions whereas the iPhone eight vary and 10th anniversary version iPhone X obtained lukewarm opinions.

However buyers have been cheered by progress elsewhere – with shares rising by as much as 5% as income and earnings surged and on affirmation the corporate was to reward shareholders by proceeds it was repatriating to the US following tax reforms introduced by Donald Trump.

Luca Maestri, Apple’s chief monetary officer, stated: “Our enterprise carried out extraordinarily properly throughout the March quarter, as we grew earnings per share by 30% and generated over $15bn in working money circulate.

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“With the higher flexibility we now have from entry to our world money, we will extra effectively spend money on our US operations and work towards a extra optimum capital construction.

“Given our confidence in Apple’s future, we’re very blissful to announce that our board has authorized a brand new $100bn share repurchase authorisation and a 16% enhance in our quarterly dividend.”

The corporate stated it might full the earlier $210bn share buy-back programme throughout the present quarter.

Apple's flagship iPhone X went on sale last autumn
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Apple’s flagship iPhone X went on sale final autumn

Such strikes are welcomed by buyers primarily as a result of they have an inclination to pay attention the worth of a holding for individuals who proceed to maintain shares.

Apple’s second quarter income included $9.1bn from its companies enterprise, which incorporates Apple Music, the App Retailer and iCloud.

Apple doesn’t break down gross sales by iPhone mannequin however chief government, Tim Cook dinner, was delighted by the general figures and forecast a mid-point income vary of $52.5bn for the third quarter – above estimates.

He stated: “We’re thrilled to report our greatest March quarter ever, with robust income development in iPhone, Providers and Wearables.

“Prospects selected iPhone X greater than every other iPhone every week within the March quarter, simply as they did following its launch within the December quarter.

“We additionally grew income in all of our geographic segments, with over 20% development in Better China and Japan.”

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