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Results Apple beat Wall St expectations, announces $ 90 billion share buyback

For Stephen Nellis

Apr 28 (Reuters) – Apple Inc posted sales and earnings well above Wall Street expectations on Wednesday and announced a $ 90 billion share buyback as customers continued to move to 5G iPhones and acquire new Mac models. .

Sales to China nearly doubled and the results beat analysts’ targets across all categories, led by $ 6.5 billion more in iPhone sales and higher Mac sales by about a third of estimates. Apple Chief Executive Tim Cook said the company anticipates an economic recovery.

“I think the United States will be very strong. Certainly all the signs that I see will be very positive for the American economy,” Cook told Reuters in an interview.

The results came amid a global semiconductor shortage that has complicated US automakers but appears to have left Apple, a major chip buyer known for its supply chain expertise, unscathed.

“There was no material problem with our results due to supply,” Cook told Reuters.

Apple thrived through the coronavirus pandemic as stay-at-home consumers stocked up on electronic devices and signed up for paid apps and services for fitness and music, and sales soared further after the launch of models of iPhone 5G last fall.

For the second fiscal quarter ending March 27, Apple said sales and earnings were $ 89.6 billion and $ 1.40 per share, down from estimates of $ 77.4 billion and 99 cents per share, according to Refinitiv data.

The Mac and iPad categories benefited from consumers working from home and learning remotely. In addition to those trends, Cook said Apple customers were responding strongly to the company’s M1 chip, its first internal processor for Mac computers.

“Both of these things happening at the same time really weighed down Mac sales. The last three quarters at Mac have been the strongest three quarters in Mac history,” Cook told Reuters.

Apple increased its dividend 7% to 22 cents a share, one cent above estimates, in addition to announcing a $ 90 billion share buyback. Alphabet Inc, Google’s parent company, announced a $ 50 billion buyback on Tuesday.

Apple said iPhone sales were $ 47.9 billion compared to analyst estimates of $ 41.4 billion, according to FactSet data. Mac and iPad sales stood at $ 9.1 billion and $ 7.8 billion, respectively, above FactSet’s projections of $ 6.8 billion and $ 5.6 billion.

(Reporting by Stephen Nellis in San Francisco, Additional Reporting by Subrat Patnaik in Bengaluru, Edited in Spanish by Manuel Farías)

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