Apple Q2 earnings show decline in iPhone revenue

Channel: Fox Business
Published: 1 hours ago

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FBN’s Susan Li reports on Apple’s second-quarter earnings. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business capital of the world — FBN launched in ...



Transcript
Very strong melissa, let's quickly get through the numbers for the second fiscal quarter for apple, so it looks like a beat on the top line as well 246. The calls were for 236 in terms of profit per share, that's higher than estimated, and also we have revenue higher as well coming in at over 58 billion dollars. Analysts are looking for a number of 57 point: 3 7 billion now, as her guidance, also ...
strong quarter ahead as well, so they are now forecasting 52 and a half to 54 and a half billion dollars much higher than revenue estimates for that's the next three Months ahead, the one that we're currently in which analysts have penciledin for 51 billion. Now he just got off the call with luca maestri who's, a cfo of apple and he's a pointing to a very strong month in march. That, in fact, was the best month for them in the start to the year, and that will carry forward. He says to the next quarter, the one that we're currently in through to june. Now the big mover here is the big news is, of course, capital returns, and we were expecting this, because this is typically what apple does during this april announcement, so they are still looking to get to net cash neutral. That means reducing their wonder and 13 billion dollars in cash still at theend of march on their balance sheet, so they have now announced an increase of dividends of 5 %, and that's the seventh increase in dividends in less than seven years. That'S big also. They are buying back more stock as well they're looking at to buy back over 75 billion dollars, and you can expect that that will move the stock. As you see we're up some five and a quarter in after-hours. Other things that i want to ask about was the iphone unit sales, because it was slightly less when it comes to iphone sales than expected for the quarter, luca maestri the cfo says.

Yes, it is about china. In fact, iphone revenue declined about 17 %. Buthe says: look, conditions are improving in china, in fact, he says march was the best out of three months. They expected to improve continuously through 2019 and 2019 has been better than the last three months in 2018, and they said this is because of a trade-in program. You know there was a lot of criticism that maybe the iphone was not rightly priced for developing market like china, and they said that they have made some price adjustments when it comes to the local currency versus the us dollar. And one important point i want to point out as well: is a poll calm deal? You know they settled that billion-dollar global battle with chip maker welcome theywill continue to use her 5g chips in their new phones in the future, and they say that this guidance, which is much stronger than expected, fully accounts for that settlement.


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