Published: Thu, May 03, 2018
Hi-Tech | By Wayne Curry

Apple Announces $100 Billion Share Buyback After Beating Profit Expectations

Apple Announces $100 Billion Share Buyback After Beating Profit Expectations

Revenue grew in all geographic locations where Apple (NASDAQ:AAPL) is available, but worldwide sales made up 65% of the revenue for this quarter. As a result, Apple will be buying back stocks that could be worth $100 billion.

Apple shares have dropped slightly since the beginning of the year, while the Standard & Poor's 500 index has dropped almost 1 percent.

Despite a starting price of $1,000 for the iPhone X, revenue from total iPhone sales fell 38 percent to $38 billion from $61.6 billion during the period.

Despite having extremely low market share, CEO Tim Cook stated that the company has been working with various carriers across the country. Now, the Cupertino, California, company is bringing most of the money home in a move that will generate a $38 billion tax bill for Apple and a windfall for shareholders. "And it's how we feel about it", Cook said in response to an analyst question about the X sales.

Lawmakers have been hoping Apple and other companies would use the overseas cash to create more jobs in the US and spend more on other projects that will help accelerate economic growth. "Apple can support the stock as the investment thesis evolves from one of product cycle to services-led growth".

It's also hard to quantify how much of the repatriated money is being funneled to shareholders.

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In February, Apple said it planned to draw down its excess cash, although Cook had downplayed the possibility of a special dividend.

However, the main focus for the company, investors and Wall Street analysts remains its iPhones.... In fact, the iPhone X was the company's top-selling smartphone model every week in the period, just as it was after it launched last fall, Cook said. 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. The iPhone sales also rose by 3% compared with the same time a year ago.

Apple earned $2.73 a share, up 30% year over year, on sales of $61.1 billion, up 16%, in its fiscal second quarter ended March 31.

He highlighted that in terms of the market in general, past year there were still half a billion feature phones sold in the world, with many of these being sold into emerging markets. Apple is slowly but steadily expanding its subscription-based offerings and with strong growth in services revenue, it is evident that consumers are responding positively to whatever Apple offers.

Shares remained strong in pre-market trading Wednesday, up 3 percent at 4:42 a.m.in NY. What matters is how popular it is, and it is popularity which has made Apple king.

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