Apple's share price surged more than 4 percent to US$176.57 on Wednesday, giving the company a market capitalization of US$895 billion. The firm increased 2018 expectations to estimate to $12.55 EPS based on higher share repurchase activity and on increased revenue expectations for service revenues and from the Apple Watch.
The biggest overhaul of the USA tax code in more than 30 years, the new law slashes the corporate income tax rate to 21% from 35% and charges multinationals a one-time tax on profits held overseas.
Apple is said to be focusing on services after witnessing a slowdown in smartphone sales. Now, the Cupertino, California, company is bringing most of the money home in a move that will generate a $38 billion tax bill for Apple and a windfall for shareholders. Tim Cook told investors that the iPhone X was the "most popular smartphone in all of China last quarter". Apple Pay also showed considerable growth as it has doubled the active users and tripled the number transactions (year-on-year).
Apple also markets related accessories, software, networking solutions, services, and third-party applications and digital content.
Investors feel quite comfortable with Apple after its latest results.
It's also hard to quantify how much of the repatriated money is being funneled to shareholders.
With that cash machine, Apple has gone on a massive stock buyback run, while also raising its dividend.
Cook said Apple was "putting a lot of energy" in India and working with the carriers in the market, and "they're investing enormously in the LTE (Long-Term Evolution) networks".
Apple is yet to reveal a price or release date for the AirPower mat, despite rumours it was coming before the end of March.
Apple provided a relatively solid outlook for the current fiscal third quarter, with revenue in the range of US$51.5 billion to US$53.5 billion.
The news is likely to squash speculation Apple could temper ever swell out iPhone prices.
Tim Cook, the CEO of Apple said that the demand for iPhone X was phenomenal in March quarter. The iPhone X's $999 starting price was out of reach for many consumers, but Apple also has a broad selection of models and price points to fit people's budgets.
Macbook revenue saw no increase the second quarter, remaining flat at US$5.8 billion (~RM22.84 billion).
IPhone sales in total are up almost three percent from the same time previous year. Many analysts lowered their estimates for Apple in recent weeks as a result. Harding Loevner LP raised its position in shares of Apple by 784,734.3% in the 3rd quarter. Analysts believe the heavy emphasis on buybacks will bolster share prices, but some investors wished Apple had found different uses for the cash. There has been recurring speculation that Apple might try to buy Netflix, a deal that would probably cost at least $150 billion and would break the mold for a company that has shunned major acquisitions through its history.
Amazon expanding Boston tech hub, hiring on 2000 workers
To accommodate all the new employees, Amazon will expand into a 430,000-square-foot space on Boston's waterfront. Amazon plans to bring thousands of tech jobs to Boston as part of a major expansion into the Seaport District.