Apple reported a surprise fall in iPhone sales for the second quarter on Tuesday, indicating that customers had held back purchases in anticipation of the 10th-anniversary edition launch of the company’s most important product.
The company boosted its capital return program by $US50 billion ($66.4 billion), increasing its share repurchase authorisation by $US35 billion and raising its quarterly dividend by 10.5 per cent.
Apple unveils new iPad and RED iPhone
The company showed off its new iPad, an updated iPhone SE, and a very special edition of the iPhone 7.
Apple sold 50.76 million iPhones in its fiscal second quarter ended April 1, down from 51.19 million a year earlier.
Analysts on average had estimated iPhone sales of 52.27 million, according to financial data and analytics firm FactSet.
Apple sold 50.76 million iPhones in its fiscal second quarter ended April 1, down from 51.19 million a year earlier. Photo: AP
Expectations are building ahead of Apple’s 10th-anniversary iPhone range this fall, with investors hoping that the launch would help bolster sales.
Apple typically launches its new iPhones in September.
A big jump in sales usually follows in the holiday quarter, before demand tapers over the next few quarters as customers hold back ahead of the next launch.
Apple’s 10th-anniversary iPhone range might sport features such as wireless charging, 3-D facial recognition and a curved display.
The company forecast total revenue of between $US43.5 billion and $US45.5 billion for the current quarter, while analysts on average were expecting $US45.60 billion, according to Thomson Reuters I/B/E/S.
Analysts on average expect the company to sell 42.31 million iPhones in the current quarter, according to FactSet.
The company’s net income rose to $US11.03 billion, or $US2.10 per share, in the second quarter, from $US10.52 billion, or $US1.90 per share, a year earlier.
Analysts on average had expected $US2.02 per share, according to Thomson Reuters I/B/E/S.
Revenue rose 4.6 per cent to $US52.90 billion in the quarter, compared with analysts’ average estimate of $US53.02 billion.
A 17.5 per cent jump in the company’s services business – which includes the App Store, Apple Pay and iCloud – to $US7.04 billion boosted revenue.