Published: Thu, May 03, 2018
Research | By Sheri Schwartz

Apple CEO Tim Cook on India market, iPhone X sales and more

Apple CEO Tim Cook on India market, iPhone X sales and more

Apple's share in the Indian smartphone market has stagnated to 3 percent over the recent quarters.

That helped the company earn almost $14 billion in its fiscal second quarter, a 25% increase from a year ago.

CEO Tim Cook attempted to assuage these fears with the report on Apple's profits, at $13.8 billion for the second quarter of 2018, and his belief that all phones sold will eventually be smartphones.

Separately, research firm Strategy Analytics issued a release Tuesday night that said Apple grew its global market share during the quarter and that the "ultra-premium iPhone X is proving relatively popular in some markets like China".

And it has approved a new $100bn (£73bn) share repurchase authorisation and a 16 percent increase in its quarterly dividend.

A provision in the package temporarily lowered the taxes that companies pay when they bring cash stashed overseas back to the U.S. That rate was cut to 15.5%, far below the 35% that would have been imposed before. While Luca refused to give a clear timeline for the latest buyback programme, he commented in an earnings call, "We are not giving an end date to the programme this time because the amount is very, very large.We will do it at a very fast pace but we also want to do it efficiently".

Apple also predicted revenue of $51.5 billion to $53.5 billion in the June quarter, ahead of the $51.6 billion Wall Street expected, and the share repurchases in the March quarter drove Apple's cash net of debt down slightly to $145 billion. "Apple can support the stock as the investment thesis evolves from one of product cycle to services-led growth". "There's going to be a shift over the next few quarters and couple years where investors are less interested on what the iPhone numbers [are] in any given quarter", said Munster. But these companies do not gain from Apple's expanding services offerings. Cook said Apple set a new first-half record in India as well. But the reaction was muted for most partners, given the limited growth in iPhone sales. Revenue climbed 16% to $61 billion.

Apple stock rose 3% in after hours trading Tuesday following the earnings report. Apple could become the first USA company to ever be valued at $1 trillion. There has been recurring speculation that Apple might try to buy Netflix, a deal that would probably cost at least $150 billion and would break the mold for a company that has shunned major acquisitions through its history. The company said yesterday that it had returned $275 billion in total capital to shareholders since 2012.

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