Apple Reports Steady IphoneSales And Declares $100 Billion Buyback
On Tuesday, Apple Inc. reported strong sales of its iPhone models and said that globally the demand of its smartphones has increased. The company also assured a $100 billion in stock buyouts. According to data from Thomas Reuters it was confirmed that the California based company sold iPhone worth 52.3 million. Wall Street analysts had expected this figure to be around 52.2 million.
In March this year, the company purchased $23.5 billion in stock and stated that it aims to increase its dividend 16 percent. Analysts believe that Apple’s strategy of buybacks will boost the company’s share prices. However, some investors have said that they wished the company took a different approach. Chief economist of Apple shareholder Capital Investment Counsel, Mr. Hal Eddins said that he was expecting a strategic investment by Apple. He said that he believes the company couldn’t find any strategic investments. Adding further, he said that for the time being it is ok for the company to embark on the buyout strategy but in the long run this strategy won’t work. In March quarter, the company reported revenue of $61.1 billion which was $8.2 billion as compared to march last year. Also, the average selling price of Apple’s iPhone was $728 in the first quarter of 2018. Wall Street had expected this figure to be around $742.
Tim Cook, the CEO of Apple said that the demand for iPhone X was phenomenal in March quarter. While speaking at the Apple’s earnings call, Cook said that it is has happened for the first time that in the first cycle the top of the line iPhone model has been the most famous. Davidson Companies analyst, Thomas Forte said that prior to the launch of iPhone X, Apple believed it to be a great product. Adding further, he said that the iPhone X is not a great product it is just a good product.
As of Monday, Apple’s profits were $2.73 per share. The company’s services division which includes iCloud, App Store and Apple Music reported $9.1 billion in revenue.