Millennial investors are gobbling up shares of Apple ahead of earnings (AAPL)

The Apple iPhone X sits on display at the new Apple Michigan Avenue store along the Chicago River in Chicago. Associated Press files
The Apple iPhone X sits on display at the new Apple Michigan Avenue store along the Chicago River in Chicago. Associated Press files

03 May, 2018

And Apple, the most valuable company in the United States, said Tuesday that it plans to spend $100 billion more on stock buybacks.

Apple's iPhone X reportedly sold better than many analysts expected.

Analysts have been quick to chime in after Apple's earnings, too, and most of the attention has been upbeat.

"We have extremely low share in that market overall", Cook said during Apple's second-quarter 2018 earnings call on Tuesday when the tech giant posted quarterly revenue of $61.1 billion, an increase of 16 per cent from the year-ago quarter.

Revenue from that division surged to US$9.1bn, beating last year's figure of US$8.5bn and Wall Street forecasts of US$8.4bn.

The performance has been wonderful for Apple in the Indian market after the reports reflected a 20% rise in revenue, while the strongest stays in Greater China region where the growth rate of 21% year-on-year is seen, in the last 10 quarters.

Apple predicts revenue of $51.5 billion to $53.5 billion in the June quarter, ahead of the $51.6 billion Wall Street expected as of Monday evening, reports Reuters. Shares remained strong in pre-market trading yesterday and were up 3pc at 4.42am in NY.

"Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter", said Cook.

It was the company's Services and Other Products segments that really excelled. Apple receives 30 percent of the price of one-time app purchases and purchases made within apps, such as items in video games, and 15 percent of App Store subscriptions to services like Netflix Inc after a year.

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In recent months, Apple has been emphasizing the size of its overall user base, which includes used iPhones, rather than focusing strictly on new device sales, a sign of the increasing importance of making money off users without selling them new hardware.

Sales of 52.2 million iPhones against a Wall Street target of 52.3 million was a comfort and up from 50.7 million past year, according to data from Thomson Reuters I/B/E/S.

San Francisco: Apple Inc.'s results confirmed that, while the days of double-digit smartphone industry growth are over, chief executive officer Tim Cook has a plan to withstand the slowdown.

While actual iPhone X numbers were never revealed, the ASP rise and Tim Cook's mention of it being the top-selling iPhone model speak to Apple's flagship being far from a flop.

"According to our estimates, iPhone X's production volume fell by 50% in the first quarter compared to the fourth quarter", Huang said. The firm noted that the implied iPhone units in the coming quarterly guidance was higher than investor expectations, and iPhone X was the number one selling phone in China. Experts think that the grave emphasis on buybacks will increase the stock prices, but some investors desired that Apple had discovered the different approach to use the cash.

Cook stressed that the smartphone market is like the best market for a consumer product company in the history of the world.

"As we're able to grow the services business, that should provide a positive (to margins), a tailwind", Maestri said in an interview.

"I don't buy the view that market's saturated", he said.

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