Apple shares rise as tech firm returns $100 billion to shareholders

Apple shares rise as tech firm returns $100 billion to shareholders

Apple shares rise as tech firm returns $100 billion to shareholders

"Given our confidence in Apple's future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization and a 16 percent increase in our quarterly dividend", said Luca Maestri, Apple's CFO.

Apple also announced $100 billion in additional stock buybacks.

Looking forward to the third quarter, Apple expects revenue between $51.5 billion and $53.5 billion. It's also well below the $796 average selling price reported in the holiday quarter.

But investors were cheered by progress elsewhere - on confirmation the company was to reward shareholders through proceeds it was repatriating to the U.S. following tax reforms announced by Donald Trump.

Other products like AirPods, Apple TV, Apple Watch, Beats headphones, HomePod, iPod Touch and other Apple-branded and third-party accessories saw an increase of nearly $4 billion, 38% more than the same quarter a year ago.

Apple CEO Tim Cook had made it clear all that money would be left overseas if the tax on foreign profits wasn't cut. But these companies don't gain from Apple's expanding services offerings.

Synovus's Morgan recently estimated that services will drive about 60 percent of Apple's revenue growth over the next five years.

Apple previously promised to hire 20,000 more workers during the next five years, including some at a planned new campus in a still-to-be-identified US city outside California.

An Apple Music subscription costs $10 per month (unless they're on a family plan), and the number of paying users recently hit 40 million.

Wall Street's belief that Apple will pass along most of its cash to shareholders has helped bolster its stock, even though its latest iPhones haven't spurred as much sales growth as most investors hoped.

Apple said it would complete the execution of the previous $210bn share repurchase authorisation during the third fiscal quarter.

Apple sold 52.2 million iPhones in the second quarter of 2018, which was down 32 per cent from the first quarter of this year when it had sold 77.3 million iPhones but up only three per cent from the second quarter of 2017 when it had sold 50.7 million units.

The company's net income for the second quarter was Dollars 13.8 billion, up from USD 11 billion a year ago.

Apple shares closed higher in the US Tuesday after reporting a 16% increase in quarterly revenues amid its best ever second quarter performance.

"China, I continue to believe is a phenomenal country with lots of opportunity from a market point of view, but also lots of opportunity from an app developer's point of view", Cook said during the earnings call.

Apple reported second-quarter profit of $13.82 billion or $2.73 per share compared with $11.03 billion or $2.10 per share past year.

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