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Apple Increases 5% Sales and Profits

The iPhone maker remains slightly behind the expectations of investors. It sells less iPhones than in the previous year, but with them higher prices. If the US government cuts taxes, Apple could use its cash of $257 billion in the US.

Apple was able to increase sales and profit in its second fiscal quarter 2017, which ended April 1 – but remained slightly behind the expectations of Wall Street. After-sales, the share price fell by two percent.

IApple-Bn particular, investors were particularly depressed by the decline in iPhones compared to the previous year, which was responsible for nearly 63 percent of total sales. For a compensation however caused that the manufacturer pro rata more high-priced smartphones could settle and thereby also with iPhones still one percent achieved. A possible explanation for the decrease in numbers sees Apple’s CEO Timothy D. Cook in rumbling rumors about an upcoming iPhone 8, which could different from the few years since few changed models.

Overall, Apple posted sales of $52.9 billion, an increase of just under 5 percent compared to $50.6 billion a year ago. Also in the net profit the iPhone manufacturer could increase by 5 per cent to 11 billion dollar or 2.10 dollar per share. Higher sales also contributed to growing Mac sales, while the iPad sales dropped sharply. Cook also highlighted the “strong momentum in business with our services.” This division generated revenue growth of 18 percent to $7 billion.

International sales accounted for 65 percent of quarterly sales. In its outlook the company remained cautious and projected for the current quarter sales between 43.5 and 45.5 billion dollars. Wall Street consensus has so far been $45.65 billion.

Apple also announced a quarterly dividend increased by 10.5 percent to $0.63. The share buybacks are to be extended from the already announced 175 billion dollars to 210 billion dollars.

Despite dividend payments and share buybacks, the iPhone manufacturer currently has a cash of 257 billion dollars. Of these, an estimated 90 percent are bounced abroad, analysts suggest. In the case of a return to the US, relatively high corporate taxes were incurred, but the Trump government promised a drastic reduction. Apple is waiting for it – if it comes to a significantly reduced tax rate, it could use these funds also for major acquisitions in the United States. It is even speculated about a possible takeover of Disney, with which Apple could establish itself in the media business.

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About Harry Sons

Harry is passionate about everything like Internet trending and games. If he's not writing you can probably catch him at a Coffee shop.

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