Tech Giant, Apple reported last May 1, 2018, that it sold 52.2 million iPhones during the first three months of the year. The said data from the past year is beat by 3% this year. Analysts had expected Apple to sell 53 million iPhones.
Regardless of the limited growth in the number of iPhones sold, the company’s profit soared 25% for the quarter, hitting $13.8 billion. Apple sales hit $61 billion for the quarter. It has an increase of 16% from the same period a year earlier, fueled by the higher price tag of the iPhone.
Tim Cook, Apple’s Chief Executive Officer, said “We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, services, and wearables,” said “We are very bullish on Apple’s future,” Cook told analysts after the news broke.
Even though market analysts were worried that the high-priced iPhone X would break its streak of excellent sales with 9.11 million iPads and 4.08 million Mac PCs over the quarter, the results came after Apple suppliers including AMS and Taiwan Semiconductors have reported slowing revenues in a sign seen by analysts as proof of shaky demand for iPhone X.
Taking advantage of the Trump administration’s new tax laws, Apple is in the process of repatriating the majority of the $252bn in profits it currently holds overseas. The company announced it would be adding $100bn to its stock buyback program, plus a 16% increase in its quarterly dividend.
Apple’s shares rose over 5% in after-hours trading with the help of the buyback. The company’s stock has risen by about 80% in the past two years, setting it on course to battle Amazon to become the first company to be valued at $1tn. But Apple’s share price has stumbled recently as fears about slowing iPhone sales took their toll.
Although Apple’s sales have grown by introducing other lines of services and products, the iPhone remains as its most prominent product. Services that are from the Apple Store, iCloud, Apple Pay and others are generated $9bn over the quarter. But the 11-year-old mobile device accounted for the majority Apple’s revenues and contributed $100bn over the quarter. However, despite the better-than-expected results, sales are slowing.