SAND FRANCISCO- Apple Inc on Tuesday reported resilient iPhone sales in the face of decrease global demand and promised $100 billion in additional stock buybacks, reassuring investors that its decade-old smartphone invention had life in it yet.
Apple’s quarterly results out forecast Wall Street predictions, which dropped ahead of the report on growing concern over the sales of the iPhone. The Cupertino, California-based company also was more optimistic about the current quarter than most financial analysts, driving shares up 3.6 percent to $175.25 after hours.
Suppliers around the globe had warned that smartphone weakness in sales will play into fears that the company known for marketing and personalizing personal computers, tablets and smartphones has become too reliant on the iPhone.
Wall street predicted sales of 52.3 million, Apple actual sales were 52.2 million, which is a better improvement from last year’s 50.2 million sales, according to data from Thomson Reuters I/B/S.
Hal Eddins, chief economist for Apple shareholder Capital Investment Counsel said, “I’d hoped for more on the dividend side or maybe a strategic investment.”
Apple decided to buy $23.3 billion of stock in the March quarter and had plans to hike their dividends by 16%.
Eddins added, “I assume Apple can’t find a strategic investment at the current prices that will move the needle for them. The $100 billion buyback is good for right now but it’s not exactly looking to the future.”
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