Apple increases dividend, share buybacks amid in-line Q1

Agencies

Apple reported revenues for its fiscal second quarter to end March in line with expectations, up 1 percent year-on-year to US$ 58.313 billion, but said service revenues reached a new all-time high of US$ 13.348 billon (from 11.450 billion) and that wearables also reached record levels. Earnings per share lifted 4 percent meanwhile to US$2.55. International sales accounted for 62 percent of total revenues and the operating cash flow increased by US$2.2 billion to 13.3 billion. As a result, the company has lifted its quarterly cash dividend by 6 percent to US$ 0.82 per share, from 0.77 per share in the previous quarter. The company also upped its existing share buyback programme by US$ 50 billion. 

CFO Luca Maestri said the company’s installed base of devices also marked record levels in all geographic segments and major product categories. The CFO said the company was “confident” in the future and that it continues to invest in all areas of its business to support its long-term plans, including its five-year commitment to contribute US$ 350 billion to the US economy.’ 

Looking more closely at results, sales in the Americas were almost unchanged, off at US$25.473 billion from US$25.596 billion. They rose in Europe to US$ 14.294 billion from 13.054 billion but fell in Greater China to US$ 9.455 from 10.218 and in Japan to US$5.206 billion from 5.532 billion. In the rest of Asia Pacific, they increased somewhat to US$3.885 billion from US$3.615 billion. 

The company ended the quarter with a cash position of US$ 43.049 billion from US$39.817 billion the year earlier.

 iPhone sales off, Wearables up

By category, iPhone sales slipped to US$ 28.962 billion from 31.051 billion while at Wearables, they advanced to US$ 6.284 billion from 5.129 billion. Sales dipped a bit for Macs and iPads to US$ 5.351 billion and 4.368 billion respectively, but rose for services to US$ 13.348 billion from