Published: Thu, May 03, 2018
Tech | By Amelia Peters

5 big revelations from Apple's surprising Q2 earnings call

5 big revelations from Apple's surprising Q2 earnings call

"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearables", said Apple CEO Tim Cook. Apple's revenue from "other products", which lumps together the Apple Watch, AirPods, Apple TV and HomePod, was up 38 percent to $3.95 billion.

Apple shares closed higher in the US Tuesday after reporting a 16% increase in quarterly revenues amid its best ever second quarter performance. While the iPhone numbers represent slight growth for Apple, they don't match the performance some analysts and investors expected when the iPhone X launched a year ago. Apple's quarterly sales in the Greater China market rose by 21 percent to $13 billion, the third quarter of growth after six quarters of double-digit declines.

But investors have been counting on Apple to give shareholders much of the money coming in from overseas, especially after the company said it meant to eventually have little or no excess cash, after accounting for outstanding debt. The company intends to rectify that with a cheaper model with numerous iPhone X's features later this year, Bloomberg News has reported.

Assuming Apple earmarks most of its cash for shareholders, Daryanani expects the company to reduce the number of outstanding shares by 31 percent, or roughly 1.6 billion shares, during the next five years.

The share repurchases in the march quarter drove Apple's cash net of debt down slightly to $145 billion. The iPhone X sold well during the holidays, but Ihnatko says that analysts are following Apple's supply chain and makers of various iPhone components who say that Apple has cut back on orders.

Curtis doesn't provide much insight into why Apple plans to stop including the adapter with new iPhones.

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Earlier this year, the company said it planned on upping its dividend to 16 per cent, up from 10.5 per cent last year. In terms of sales, Apple sold 52.2 million iPhone during the quarter, generating a revenue of $38 billion.

Wall Street had been anxious for months that demand for the iPhone X was dropping.

Apple has responded to rumours that its flagship iPhone X was failing to excite consumers with record sales. That's a 32 percent drop from the previous quarter, which saw 77.3 million iPhone sales, though there's always a drop-off from the holiday.

Apple announced a $100 billion share buyback in its earnings call on Tuesday. Analysts had widely predicted bad quarter forecasting dent in sales of iPhones, the company's most popular product.

Apple's Chief Financial Officer (CFO) Luca Maestri said during the conference call that Apple's Mac set a new March quarter revenue record, including new records in both the Americas and Greater China.

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