Apple Analysts Offer Mea Culpas After iPhone Sales Hold Up

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So it is not worth to expect that Apple will decrease prices anytime soon.

Apple also will spend $100 billion more buying back its stock, a move that will enrich shareholders by helping to drive up the company's stock price.

Suppliers around the globe had warned of smartphone weakness, playing into fears that the company known for popularising personal computers, tablets and smartphones had become too reliant on the iPhone.

But iPhone sales for the quarter ending March 31 came in at 52.2 million, a bit below consensus estimates of 53 million.

Apple bought US$23.5 billion of stock in the March quarter, and said it planned to hike its dividend 16 per cent, compared with a 10.5 per cent increase a year ago.

Investors should want companies to reinvest in themselves and their employees versus repurchasing their own stock to increase the share price, said William Lazonick, an economics professor at University of Massachusetts, Lowell, who studies stock buybacks.

Mr Stanton said that growth underlined a shift in strategy to develop businesses outside its core products: "This is the future of Apple". He said that "because we're making all the right investments all around the company, it makes flawless sense for us not to keep the cash on our balance sheet but return it to investors".

Apple posted revenue for its March quarter of US$61.1 billion, up from US$52.9 billion past year. Wall Street expected $60.8 billion, according to Thomson Reuters I/B/E/S.

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However, the average selling price (ASP) of iPhone told the market more details about the actual performance of the business.

The iPhone is still Apple Inc's (NASDAQ:AAPL) big money-maker but Wall Street analysts like how the tech giant is reducing its reliance on the smartphone business.

Profits were $2.73 per share versus expectations of $2.68 per share, as of Monday, and up from $2.10 a year ago. Heading into earnings, investors were hopeful that growth in that segment could help offset the cooling global smartphone market. "So we continue to put great energy there and try to - our objective over time is to go in there with all of our different initiatives from retail and everything else", Cook said in an earnings call with analysts after the company announced its best-ever overall March quarter results, with revenue of $61 billion, up 16% on-year, and net income of $13.8 billion, for the quarter ended March 2018.

The company also doubled the number of users and saw triple the transactions on its Apple Pay mobile payments service, Cook said, though no specific numbers were given. Apple also made investors happy announcing a 16% increase in its stock dividend and a planned $100 billion share buyback.

Tim Cook, CEO of Apple, described the AirPods as a "runaway hit" with Apple fans.

The company plans to spend $10 billion opening and expanding data centers in the USA and another $20 billion on other long-term projects, but it's unclear how much of that Apple would have spent anyway. Apple is expanding its manufacturing facility in Bengaluru with the acquisition of a new tract of land near Devanahalli. President Donald Trump at the White House to discuss trade matters. Apple sells phones ranging from ₹20,000 to ₹1 lakh in India.

Apple said its dividend increase would be reflected in a cash dividend of 73 cents per share payable on May 17.

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