Apple tops estimates due to iPhone demand

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Apple tops estimates due to iPhone demand

Revenue from services surged 31 pecent to a record $9.2 billion in the quarter.

But the nearly 4% jump in Apple's stock price in after-hours trading only got the shares back to around $175, the same level where they were back in November and have bounced around for the intervening months.

Apple also announced an expected expansion of its buyback programme, which includes a new $100 billion share repurchase authorisation and a 16% increase in its quarterly dividend.

Apple's iPhone revenue increased 14 percent to $38 billion in the quarter.

"We are thrilled to report our best March quarter ever, with strong revenue growth in iPhone, services and wearables", Apple CEO Tim Cook said in a statement.

"The Services segment will grow between 13 percent and 20 percent per year over the next five years driven by continued growth in existing services along with new, innovative services", Gene Munster, co-founder of Loup Ventures and a veteran Apple analyst, wrote in an email following the results on Tuesday.

No company benefited more from that cut than Apple, which had accumulated more than $250 billion outside the USA during the past decade, thanks to the vast popularity of the iPhone and other products. The business had revenue of $61.14 billion during the quarter, compared to analyst estimates of $60.94 billion.

Shares rose 3.2 per cent to $174.49 in after-hours trading.

Amid concerns of slow iPhone sales and lackluster demand for iPhone X, Apple has announced strong growth in revenue during the second quarter of 2018.

Apple's revenue from Mac in fiscal Q2 2018 remained flat at $5.8 billion.

"China, I continue to believe is a phenomenal country with lots of opportunity from a market point of view, but also lots of opportunity from an app developer's point of view", Cook said during the earnings call. Famously, many critics had said that the iPhone X was virtually dead as the public was not much enthused by it. Legal & General Group Plc now owns 26,393,202 shares of the iPhone maker's stock worth $4,067,559,000 after acquiring an additional 287,027 shares during the period.

The iPhone X carries a starting price tag of $999, while two other recently released phones - the iPhone 8 and iPhone 8 Plus - start at $699 and $799, respectively. For instance, the iPhone 8, iPhone 8 Plus and Apple Watch Series 3 was launched in India just a week after it went on sale in the US.

Revenue grew in all geographic locations where Apple (NASDAQ:AAPL) is available, but worldwide sales made up 65% of the revenue for this quarter. With its Macs largely in the middle of their product cycle or older, it recorded 4.1 million sales, down from 4.2 million for the same period a year ago. That said, China is getting closer to passing Europe as Apple's second-largest market behind the US.

But according to a new report, Apple is being a bit shady about its replacement policy by finding minor faults with iPhones that it charges users to correct before giving them their replacement batteries.

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