Apple shares spiked in after-hours trading on Tuesday as the tech giant topped earnings expectations and announced a $100 billion boost to its share buyback program.
Overall profits in the quarter were $13.8bn, up a quarter from the same period in 2017.
This growth was largely credited to the iPhone, with Apple flogging 52.2 million smartphones during the three-month period, up three per cent on previous year. Taiwan's Pegatron Corp., which assembles the iPhone 8, ramped up capacity in anticipation of a surge in demand last year, but the shortfall led to lower utilization rates in its factories and operating margins slid from 2.8% in 2016 to 1.61% last year.
As a point of reference, Apple during the same quarter a year-ago posted revenue of $52.9 billion and earnings per share checking in at $2.10. Not only have we seen rumors alleging that Apple in recent weeks has slashed iPhone X orders, disappointing revenue forecasts from some of Apple's key suppliers has only fanned the flames of pessimism amongst analysts and industry observers. Shares rose 3% after Tuesday's statement.
Apple does not offer sales figure from Apple Watch, AirPods and other peripherals but it did confirm revenues from other products were up 38 percent from past year. Since the launch of the iPhone 8, iPhone 8 Plus and the iPhone X, the MSRP of an Apple phone is a bit higher.
Apple Q2 2018 results: $61.1 billion revenue, 52.2 million iPhones sold
Still, Cook seemed optimistic, saying on the firm's earnings call: "HomePod is widely recognized for having the best sound quality for its size and class".
Other wins included Apple's paid services, including its App Store, Apple Pay, Apple Music and iCloud Storage, totalling up to $9.2bn. "And so we're working toward those things", he said. Revenue rose 16 percent to $61.1 billion.
Sales growth of more than 20% in Japan and the greater China market - a critical area for the company - helped to lift the numbers. Cook particularly addressed how the company is doing in India, the world's fastest growing smartphone market.
Apple's Chief Financial Officer (CFO) Luca Maestri said during the conference call that Apple's Mac set a new March quarter revenue record, including new records in both the Americas and Greater China.
The company will also increase the quarterly dividend by 16%.
In fact, a staggering 52.2 million handsets were sold since January with the iPhone X appearing one of the most popular - dismissing concerns raised by some analysts that this new fladhsip's sales were slow.
Dominican Republic establishes ties with China in blow to Taiwan
Its switch is a diplomatic victory for Beijing , which has often dangled generous aid packages in front of developing nations. Panama switched its diplomatic relations from Beijing to Taipei past year , and Costa Rica did likewise in 2007.