Apple's shares are rebounding, boosting the company's market value to $ 1 trillion after its service business boosted better-than-expected results in the second quarter with initiatives such as a new news subscription service compensating for lower demand for your iPhone. However, revenue fell compared to the same period a year ago.
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The company reported a quarterly revenue of $ 58 billion, surpassing the $ 57.37 billion expected by analysts surveyed by Refinitiv, but fell 5% over the same period last year. Apple posted a second-quarter earnings of $ 2.46, surpassing the projected $ 2.36, but was down 10% year-over-year.
Apple's services segment, which also includes Apple Music, Apple Pay and iCloud, posted revenue of $ 11.45 billion. Analysts had expected service revenues of $ 11.37 billion. Revenue from iPhone sales was $ 31 billion, virtually in line with expectations, but a decline of 17 percent year-over-year. Sales of iPads and handheld devices, such as Apple Watch, have increased.
"Our March quarter results show the continued strength of our installed base of more than 1.4 billion active devices, as we set an absolute record for Services and the strong momentum of our Wearables, Home and Accessories category we established a new quarter in March. record, "Apple CEO Tim Cook said in a statement.
"We delivered our strongest iPad growth in six years and are as excited as ever with our channel of innovative hardware, software and services. We look forward to sharing more with developers and customers at the 30th Apple World Conference of Developers in June, "he said.
Apple provided third-quarter revenue guidance of $ 52.5 billion to $ 54.5 billion, easily surpassing Wall Street expectations.
The company's stronger-than-expected results came amid a thorough examination of the health of its business on the iPhone, which for a long time served as Apple's main revenue driver. Apple issued a rare alert ahead of the first quarter results, noting that it was seeing a drop in demand for the iPhone in China.
In the second quarter, Apple's revenue in Greater China fell 22 percent to $ 10.2 billion. Revenue rose slightly year after year in the Americas and Japan and sank slightly in Europe.
During a teleconference, Cook said that Apple has seen a "positive response" to price rebates in the Greater China market, adding that the company has seen an "encouraging trend" in demand for the iPhone globally in the third quarter.
"We certainly feel much better than we did 90 days ago," Cook said of the iPhone deal.
Apple stopped releasing iPhone unit sales last November, arguing that the once-key metric was no longer the best representation of its success given the recent emphasis on services. The company unveiled a trio of new subscription services related to television, news and games in March.
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The maker of iPhones said it will hold another $ 75 billion in share buybacks and declared a cash dividend of $ 0.77 per common share, up 5 percent from last year. Dividends will be paid on May 16.