Regarded as the world’s biggest company in terms of market capitalization, Apple presented the revenue report of the company’s earnings for the second quarter.
The company was very successful in surpassing all the predictions made by experts and once again making its mark in the market. The second quarter revenue report from the company showed an overall revenue generation of $94.8 billion.
Even though this is a huge achievement for the company, the comparison with the revenue generated last year at the same time is still a bit lesser number. Last year, the company reported $97.3 billion for its second-quarter revenue.
It should also be noted that the company was able to go beyond the predictions put forward by experts who expected the number to be around $92.9 billion.
While addressing the media after the report had been presented, the Chief Financial Officer for Apple Luca Maestri satiated that the growth in the second quarter was a result of the strong performance that the company was able to put forward in the emerging new markets from South Asia, India, the Middle East, and Latin America.
The Chief Executive of the company Tim Cook also noted the scope of the emerging markets and mentioned his dreams for the company’s latest and potentially one of the biggest markets – India.
Cook stated that the company has noted that a lot of people are entering the middle class in India as the financial situation of the country develops. So they are hoping to convince some number of the population to buy an iPhone. It was only recently that Apple opened its first two showrooms in India.
The second quarter revenue report of the company shows that the company had an income of $24.4 billion which is about $1.52 a share. While looking at the year-over-year analysis of the company, Apple had a net income of around $25 billion, at the same time last year.
According to the data published by FactSet, the company was expected to have around $1.43 a share in earnings on average.
The report of the company’s performance in the second quarter came at a time of concern regarding consumer-electronic spending due to some of the issues regarding the third-party data points.
Experts were eager to see the results of the company’s performance and it was surprising to see that the results surpassed all the expectations.
While Apple still remains one of the biggest and most successful companies in the world, the decline in the sales of some of its products needs to be mentioned. The company saw a massive decline in the sales of their products like iPad and Mac.
Almost a year ago, the sales of iPads were recorded at $7.2 billion, which saw a sudden fall to around $6.7 billion. The fall in the sales of iPads also matched the prediction made by FactSet that year. Likewise, the sales ofMac also saw a sudden decrease.
The sales of the product which earlier reached around $10.4 billion saw a decrease and fell to around $7.2 billion. Analysts of the market made a prediction that the sales of the product would be around $7.8 billion but the actual numbers went down even further.
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While there had been a fall in the sales of iPads and Macs, which are some of the significant products of the company, there had also been a small change in regards to the sales of Apple’a wearables, home, and accessories category.
Even though a small change can be noticed in the sales of the products that fall in this category, the overall change can be said to be flat. The company generated around $8.8 billion through the sales of its products that fall in the category.
The estimation in terms of the revenue made by FactSet was around $8.4 billion. The category also showed a growth in revenue up to around $20.9 billion which was at $19.8 billion last year. The revenue generated falls somewhat in line with the FactSet consensus which was $21.0 billion.
Along with the second quarter revenue report, the company also shared the news regarding its upcoming buyback program. Apple also is planning to increase its buyback program for about $90 billion and this will be done along with boosting its quarterly dividend by 4% to 24 cents per share.
A year ago, the company had a $90 billion increase in share repurchase authorization and around a 5% dividend hike.
Also, Apple’s Chief Finacial Officer Luca Maestri stated that he expects the company to put forward similar performance and thereby similar results during its June-quarter revenue growth, just like the results in the March quarter, while compared on a year-to-year basis. He also added that the expectation is made, assuming that the macroeconomic status of the market stays stable.
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