Apple Inc. (AAPL) announced its earnings and revenue for the second quarter that beat consensus forecast. AAPL shares jumped nearly 4 percent in the after-hours trading session on Tuesday following better-than-expected results.
The iPhone maker announced a new share repurchase program of $100 billion and also lifted its dividend.
The Cupertino, California-based company posted earnings of $2.73 per share for the three-months period ended March 31, up from $2.10 per share in the same period, one year ago. Analysts on average were looking for a profit of $2.64 per share.
Revenue for the quarter came in at $61.1 billion, representing a surge of 16 percent from the comparable quarter last year, but slightly below consensus forecast of $60.9 billion.
Looking forward, Apple is expecting revenue in range of $51.5 billion to $53.5 billion for the fiscal third quarter, versus $51.6 billion estimated by analysts.
The company sold 52.2 million iPhone units in the second quarter, up 2.9 percent versus last year. Analysts on average had forecasted 52.3 million.
The average selling price of iPhone was $728 in the quarter, versus $740 predicted by analysts.
Investors start raising questions about iPhone sale after suppliers’ revealed low demand for expensive smartphones. Apple has also been facing tough competition in China, where local rivals like Vivo and Oppo have started grabbing market share in the world’s most populous country.
Apple’s services segment reported revenue of $9.1 billion in the quarter, easily beating analysts’ average estimate of $8.3 billion. The services business includes Apple Music, iCloud and the App Store. Even before the earnings report, investors were optimistic that growth in that segment would make up for slowing smartphone market.
Apple’s Other Product unit also enjoyed strong sales and revenue jumped 38 to $3.95 billion. The segment includes Apple TV, Apple Watch, HomePod, and AirPods headphones. CEO Tim Cook said that revenue from wearable devices rose nearly 50 percent on year-over-year basis.