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Apple Reports 16 Percent Revenue Growth

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By Published On: May 2, 20180 Comments

Apple has announced its trading results for the quarter ending March 31, 2018, reporting a 16 percent growth in revenue from the same period in 2017.

The company has posted a result of $61.1 billion, and quarterly earnings per diluted share of $2.73, which is also up by 30 percent. Of these sales, international transactions accounted for 65 percent of the tech giant’s total revenue for the quarter.

“We’re thrilled to report our best March quarter ever, with strong revenue growth in iPhone, Services, and Wearables,” Apple’s CEO, Tim Cook said in the announcement.

“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. We also grew revenue in all of our geographic segments, with over 20 percent growth in Greater China and Japan,” he said.

According to Luca Maestri, Apple’s CFO, the company also generated more than $15 billion in operating cash flow, which he believes will allow the business to invest in US operations in the future.

“With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our US operations and work toward a more optimal capital structure. Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorisation and a 16 percent increase in our quarterly dividend,” Maestri said.

Apple has reported that this $100 billion share repurchase is in addition to the previous announcement of a $210 billion share repurchase authorisation, which is expected to be executed during the next fiscal quarter.

Predictions for the next quarter are also strong, as Apple is expecting to generate revenue between $51.5 billion and $53.5 billion, and a gross margin between 38 and 38.5 percent.

These positive results and growth predictions come after multiple reports revealed that Apple’s iPhone sales have been steadily falling. According to a report by Forbes, Apple’s revenue is up, but adoption rates are down, as consumers have been slow to adopt the flashy technology of the iPhone X that comes at a higher price with higher margins.

Apple is expected to release three new iPhones this year, including an updated version of the iPhone X. The names of these models and exact details are yet to be released.

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