Apple Q2 Profit Tops Street, To Buyback $100 Bln Shares

Apple Q2 Profit Tops Street, To Buyback $100 Bln Shares

Apple Q2 Profit Tops Street, To Buyback $100 Bln Shares

Cook added some additional detail about iPhone X sales when asked about the sustainability of the iPhone X's pricey $999 starting price. That was the fastest growth in more than two years.

Firstly the figures confirm that the iPhone sales are flat and while Apple is still doing well for now, the sources of future growth may still be murky.

No company benefited more from the tax break on overseas cash than Apple, which had accumulated more than $250 billion outside the USA during the past decade, thanks to the huge popularity of the iPhone and other products.

Apple sold 52.22 million iPhone units during quarter, generating $38.03 billion in revenues, up from 50.76 million units and $33.25 billion in revenues past year.

Apple's profits increased 25 percent in the second quarter despite a marginal increase in iPhone sales, the company reported Tuesday.

Average selling prices for iPhones rose to $728 from $655 a year ago - apparently helped by demand for the iPhone X - though this missed expectations of $742.

"The iPhone X is a beloved product". Earlier this year, chief financial officer Luca Maestri said iPhone revenue would grow by at least 10% year-over-year in the fiscal second quarter.

"Since we split the line with the launch of iPhone 6 and 6 Plus in 2014, this is the first cycle in which the top of the line iPhone model has also been the most popular", said Apple CEO Tim Cook during an earnings call.

In otherwords Apple is happy with its current path and sees no reason to actually inovate while it is still making money. On top of this, he didn't think tariff issues between the United States and China would pose a problem for sales in the future because "there's a lot of things that bind the countries together", according to a recent BBC interview. Now this isn't to say that iPhone X sales have been through the roof. It had been hyped beyond belief and was the device which was supposed to put Apple ahead technology wise. That's a big change from the previous half decade when 86 percent of the company's growth came from iPhone sales. A new $100 billion stock repurchase plan and higher dividend also helped.

But the company's third-quarter outlook of $51.5 billion to $53.5 billion compares favourably to analyst forecasts for the period. Apple has nearly two million application developers in China that are writing apps for iOS and the App Store, and "they're doing unbelievably creative work and innovative work".

"And so our task is to convince people that now - or have another type of phone to switch, while really taking care of people that have an iPhone so that they choose - when they elect to buy another phone, that they buy another iPhone".

Related news