Apple plows United States tax cuts into record share buybacks

Apple made $34 billion despite slow iPhone sales in first quarter of 2018

Among all the financials, one figure that stands out most - not the iPhone X - then it is the revenue from its Services business.

Such rosy numbers were far from expected, especially from the iPhone X, with Bloomberg reporting two days before the company reported its quarterly results that Cook was expected to address the fact that the iPhone X did not live up to the hype, and offer a plan to fix it.

Since July past year, Apple has been running aggressive marketing campaigns, offering interest-free EMIs on MacBooks and heavy discounts on entry-level MacBooks on e-commerce portals. Mac sales, meanwhile, were down 3 percent to 4.07 million, and while the Mac's $5.8 billion revenue was flat compared to a year ago, ASP was up from $1392 to $1434. Of 43 analysts covering, 29 have a "buy" or higher rating and 14 on "hold". Apple had a return on equity of 37.37% and a net margin of 21.13%.

For the current quarter, those nine firms are predicting that Apple will sell 4.2 million smartwatches. Apple ended up reporting total Q2 iPhone revenues of $38.03 billion.

Apple said its dividend increase would be reflected in a cash dividend of 73 cents per share payable on May 17. Some investors welcomed this 3% growth as a sign of healthy iPhone demand. Suva also notes that the iPhone X "super cycle" won't happen this year since a 3% Y/Y shipment increase "stops short of investor expectations for a super cycle".

Again, more Apple analyst reports soon will become available.

According to CyberMedia Research, Apple sold only 5,85,004 iPhones in India in the quarter, compared with 7,52,544 in the same quarter previous year, a 22 per cent decline.

Shares of Apple closed Tuesday up 2.3% at $169.10, and the stock was last seen up more than 4% at $176.44 after about an hour of trading on Wednesday at a level that was more or less in line with the initial after-hours reaction on Tuesday.

Apple's growth story is gradually shifting from hardware sales to its services business as the company builds out the iPhone platform with app sales, music streaming subscriptions, cloud storage and mobile payments.

In other Apple news, insider Luca Maestri sold 39,122 shares of the stock in a transaction dated Friday, April 13th. In the same month, the company said they are expecting to contribute to $350 billion to the US economy during the next five years. Apple's shares dipped 5.8 percent over the past month after several reports said the Cupertino, California, company was cutting back on production of the iPhone X because of poor sales.

It also coincided with a bout of volatility on Wall Street in recent months, which has many investors anxious that a nine-year bull market may be ending.

Tim Cook, the CEO of Apple said that the demand for iPhone X was phenomenal in March quarter.

"Apple Watch had another great quarter with revenue growing by strong double digits year-over-year to a new March-quarter record", Cook said.

Apple's revenue in India grew 20% on year in the January-March quarter, driven by iPhones as well as its computers, outpacing its overall 16% growth, albeit off a lower base.

Investors feel quite comfortable with Apple after its latest results.