Apple announced a 16 percent increase in its dividend and plans to spend another USD 100 billion buying back shares, after reporting results for the March quarter in line with expectations. The company's revenues for its fiscal second quarter rose 16 percent year-on-year to USD 61.14 billion, and earnings were up 30 percent to USD 2.73 per share.
While iPhone shipments rose only 3 percent year-on-year to 52.2 million, Apple benefited from the higher price tag of the new iPhone X to help drive faster revenue and profit growth. In addition, the company profited from a drop in taxes after the US corporate tax reform, which also freed up its cash abroad for the increased shareholder returns.
The iPhone remains the biggest revenue generator, with sales up 16 percent year-on-year to USD 38.03 billion. However, it's the 'other' products, such as Apple TV and the Apple Watch, that are growing the fastest, with revenues rising 38 percent to USD 3.95 billion. Service revenue also increased 31 percent to USD 9.19 billion, and iPad revenues rose 6 percent to USD 4.11 billion, on shipments up 2 percent to 9.11 million units.
CEO Tim Cook said it was another record March quarter for the company, helped by the iPhone X outselling all other iPhone models each week in the quarter. In addition, revenue grew in all of Apple's geographic segments, led by over 20 percent growth in Greater China and Japan.
Apple expects the sales growth to continue in the June quarter, forecasting revenues of USD 51.5-53.5 billion versus USD 45.4 billion a year ago. The company said it expects to complete its previous share buyback programme, worth USD 210 billion, during the quarter, and the dividend of USD 0.73 per share will be paid later this month.
