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Apple shares rise as solid iPhone sales growth cheers Wall Street

Apple earnings jump on healthy iPhone sales

Net income was $13.82bn, up from $11.03bn year-on-year. Sales of 52.2 million iPhones against a Wall Street target of 52.3 million was a comfort and up from 50.7 million a year ago, according to data from Thomson Reuters.

Apple reported its "best March quarter ever" on Tuesday, with CEO Tim Cook declaring that customers chose the iPhone X "more than any other iPhone each week" across the three months.

IPad sales were also up in Q2, with Apple selling 9.11 million tablets compared to 8.92 million this time past year.

Apple recorded revenue increases in all operating regions compared with the year-ago period, China and Japan scoring the biggest gains in percentage terms.

Reflecting the approved increase, the board declared a cash dividend of 73 cents per share of Apple's common stock payable on 17 May, to shareholders of record as of the close of business on 14 May. However, Cook was happy to point out that sales of wearable devices jumped almost 50 percent on a year earlier, attributable at least in part to the launch of the first cellular Apple Watch toward the end of 2017. Analysts had widely predicted bad quarter forecasting dent in sales of iPhones, the company's most popular product.

Still, Cook seemed optimistic, saying on the firm's earnings call: "HomePod is widely recognized for having the best sound quality for its size and class". The services division includes revenue from products like App Store, Apple Music, iCloud, Apple Pay, Apple Care and other services.

"So we're working toward those things". Apple sells more iPhone X units every week than any other iPhone model, and that's been the case since the launch of the device back in November.

In addition, the analyst from Sanford C Bernstein who predicted previous year that iPhone owners who had previously held back on updating would finally update with the iPhone X, reported no such "supercycle" had occurred.

Apple has posted impressive second quarter results that have allayed market fears that its principle cash cow, namely the iPhone, was slowing down.

Along with the $100 billion share buyback, Apple also reported earnings per share growth of 30% to $2.73.

Apple also said it would increase the quarterly dividend by 16%.

On the wings of strong sales, Apple announced it will buy back additional $100 billion worth of its stocks.

Luca Maestri, Apple's chief financial officer, said: "With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our USA operations and work toward a more optimal capital structure".