Revenue growth in the March quarter though was up a "very strong" 20% on year in emerging markets such as India, said CFO Luca Maestri, nearly at par with the 21% year-on-year growth in the Greater China region, the highest in the last 10 quarters.
The iPhone continues to account for the bulk of Apple's revenues at just over 62% of the total.
SINCE Apple said in January that it would bring back most of the US$252 billion it held overseas under the new tax law, investors have wondered what the company would do with the enormous cash pile. "And the infrastructure has come quite a ways since we began to put a lot of energy in there due to their leadership and so forth", Cook said. On Tuesday, those investors learnt that they are in line for a big chunk of the money.
The amount Apple spent buying its shares in those three months exceeded the stock market value of most companies in the S&P 500 index, including household names like Kroger Co, Best Buy Co Inc and Hershey Co. The company did not provide a timeline for the repurchases.
On that note, Maestri said that Apple would be increasing its dividends to 73% per share, up from 57%. Analysts believe that Apple's strategy of buybacks will boost the company's share prices. Chief economist of Apple shareholder Capital Investment Counsel, Mr. Hal Eddins said that he was expecting a strategic investment by Apple. By contrast, the company discloses unit sales for iPhone, iPad and Mac computers.
The company, flush with a huge cash pile on strong earnings enhanced by the United States tax cut plan of 2017, announced $100 billion in new share buybacks plus a 16 percent boost to its quarterly dividend.
Today's post-earnings pop has Apple shares bouncing off familiar support in the $164-$165 region, which served as a floor in November and March, and represents a 10% pullback from the stock's mid-March record high of $183.50. Reportedly, Cook also assured that the company is in plans to bring all of its different initiatives "from retail and everything else" to leverage the market potential in India. "And so we're working toward those things", he said.
When it comes to fears about the iPhone X's performance, this report should "all but put them to rest", Motley Fool senior analyst Jeff Fischer said."Tim Cook and Apple are playing the long game", he added.
Cook suggested new services are in the works. "So we look at China holistically, not only as a market".
He states: "I don't buy the view that the market is saturated". But that isn't necessarily good for the hundreds of iPhone suppliers around the world, contrary to the market's initial bounce.
"It's a terrific market, and we're very happy to be a part of it", he said. Apple sells phones ranging from ₹20,000 to ₹1 lakh in India.
"Recent corporate tax reform enables us to deploy our global cash more efficiently", Cook told analysts during a conference call.
Apple had sold almost 52.2 million iPhones in the fiscal second quarter, up a slim 2.9 percent compared to previous year and slightly below the 52.3 million that analysts had been looking for on average.
The company's net income for the second quarter was Dollars 13.8 billion, up from USD 11 billion a year ago.