Apple returned to its old forecast-busting ways on Wednesday, reporting better-than-expected revenue and iPhone growth. Even though iPad sales underwhelmed, Wall Street cheered the second-quarter results with an 8 per cent spike in after-hours trading. Apple also added $30bn in new dividends and share buybacks to its existing $100bn capital return programme, alongside a seven-for-one stock split.
Tim Bradshaw and Sarah Mishkin bring live commentary from Apple’s conference call and reactions from the market.
Facebook is paying up to $19bn in cash, stock and earnouts to acquire WhatsApp Messenger, the world’s most popular mobile chat app with more than 450m regular users. Here Tim Bradshaw and Hannah Kuchler brought live reaction and comment from Facebook’s conference call.
It’s the biggest day in the Apple calendar: the iPhone launch. This year, for the first time, Apple unveiled two new smartphones: the upgraded 5S, with a 64-bit chip and fingerprint scanner, and the all-new 5C, with plastic casing in a handful of colours.
Tim Bradshaw was at Apple’s Cupertino headquarters and April Dembosky reported from San Francisco.
Apple has reported second-quarter earnings that beat analyst expectations, but has disappointed Wall Street with its outlook for the June quarter. The maker of the iPhone reported $43.6bn in revenues and earnings of $10.09 per share, compared with analyst expectations of $42.5bn and $10.07 in earnings per share. Its guidance for $33.5bn to $35.5bn in third-quarter sales though is well below the Wall Street consensus of $38.9bn. Apple has also increased its share buyback authorisation from $10bn to $60bn. Below is our blow-by-blow account of the earnings, analyst call and reaction to the news.
After two quarters of declines, iPhone sales ticked up again in the latest period, to nearly 27m. Meanwhile, iPad sales dropped to 14m as rumours of a new iPad mini spread like wildfire. But for Wall Street, this was just the appetiser: the real banquet will be Apple’s current quarter, when iPhone sales are projected to jump to 50m and iPads to 22m. Speaking on the earnings call, Apple executives sounded optimistic about their ability to ship the new products in high volumes – though they warned that profit margins would suffer a temporary dent.
See below for our blow-by-blow take on the company’s latest earnings call. Read more