American technology firm Apple on May 1 announced its Q1 2018 business results with revenue and profit both exceeding expectations, even though it sold less than expected number of iPhone smartphones.
According to CNBC, Apple shares rose up to 5% in electronic trading after the official trading session on Tuesday of US stocks ended.
The “apple” report showed sales of $ 61.1 billion in Q1, compared with a forecast of $ 60.82 billion, and $ 52.9 billion achieved in the same period last year. Net profit was $ 13.82 billion, compared with $ 11.03 billion in the same period in 2017.
Profit per share reached 2.73 USD, compared with the forecast of 2.67 USD / share that analysts gave earlier.
During the quarter, Apple sold 52.2 million iPhones, compared with a forecast of 52.54 million units released by StreetAccount. During the same period last year, Apple sold 50.7 million iPhones.
Although selling less than expected iPhone pharmacy, Apple achieved revenue exceeding forecast in the services segment. During the quarter, this segment brought Apple $ 9.19 billion in revenue, compared with a forecast of $ 8.39 billion given by StreetAccount.
In the last 21 quarters, Apple has had 20 quarters with business results exceeding the forecast of analysts.
In addition, investors are also excited about the $ 100 billion stock buyback program and the 16% dividend increase plan that Apple has just announced. The company said that from 2012 up to now, it has spent $ 275 billion to buy back shares.
Apple’s cash reserves as of the end of Q1 decreased to $ 267.2 billion, $ 17.9 billion lower than the end of last year, and the lowest level since June 2017. This decline in cash reserves is partly due to an increase in stock repurchase programs and increased investments and spending.
In Q1, the average selling price for each iPhone was $ 728, the highest ever, but not up to Wall Street’s expected $ 742.
Apple continues to face fierce competition in the Chinese market, home to powerful domestic smartphone makers like Huawei and Xiaomi. However, Apple’s Chief Executive Officer (CEO) Tim Cook said the company achieved 20% revenue growth in the Chinese and Japanese markets in the first quarter.
In mainland China, Hong Kong and Taiwan, Apple achieved a revenue of $ 13 billion in the quarter, equivalent to its revenue in the European market.
During the quarter, Apple sold 9.1 million iPad tablets and 4.08 million Mac computers. While not releasing specific numbers, Cook revealed that wearables, including the Apple Watch and AirPods, recorded sales growth of about 50% during the quarter.
Apple’s new strategy for the iPhone has made it more difficult to determine how successful it is. Last fall, Apple launched three new smartphones at a time, instead of two as before. However, Mr. Cook said that the iPhone X was Apple’s best-selling phone in the Chinese market including Hong Kong and Taiwan in the first quarter.
There have been rumors recently that Apple will cut production or stop production of the iPhone X due to weak demand. However, Chief Financial Officer (CFO) Luca Maestri of Apple, on May 1, said that in the first quarter, iPhone inventories fell 1.8 million units, more than the inventory decline of 2017.
* Source: VN Economy