Apple sees profits soar as iPhone X sales defy expectations

Joanna Estrada
May 4, 2018

Regarding the third quarter, Apple issued guidance for revenue between $51.5bn and $53.5bn, and a gross margin of between 38% and 38.5%.

Cook added some additional detail about iPhone X sales when asked about the sustainability of the iPhone X's pricey $999 starting price.

Apple achieved its best-ever quarter for the three months to March, posting a revenue of $61.1bn - a 16 per cent year-on-year (YoY) increase - for the second quarter of its fiscal year 2018.

"We're thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services and Wearable", Apple chief executive Tim Cook said.

iPhone sales in the three months to March totalled 52.2 million.

The company's Services and Other Products verticals earned it $9.1 billion and $3.9 billion in revenue respectively, marking uniform revenue growth year-on-year across all verticals, barring Macs.

"With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our USA operations and work toward a more optimal capital structure".

In addition, the tech innovator announced a $100 billion share buyback programme after reporting a $145 billion cash pile in the previous earnings report, following the changes to the United States tax system in 2017.

The new buyback programme is the latest in a series of steady increases in Apple's dividends and stock buybacks since its stock split in 2014.

From the inception of its capital return program in August 2012 through to March this year, Apple said it had returned $275bn to shareholders, including $200bn in share repurchases.

Apple's decision to share more of its huge cash reserve, now estimated to be $267.2 billion, with shareholders helped to paper over the cracks of an otherwise unexciting set of results.

But Apple shares climbed 4.3 percent in after-hours trading Tuesday due to an increase in net income and revenue year-over-year.

Ultimately, the iPhone X may not have helped Apple set any new quarterly sales records, but it's still a far cry from being a disappointment.

Other reports by Click Lancashire

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