Slower Than Expected iPhone X Sales Likely To Hurt Apple's Earnings

What To Expect From Apple's Q2 Earnings

Apple does not offer sales figure from Apple Watch, AirPods and other peripherals but it did confirm revenues from other products were up 38 percent from previous year.

"Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow", Apple CFO Luca Maestri said in a statement.

Apple also enjoyed growth in every geographic segment, most notably posting a 21% revenue increase in China, where the iPhone X was the most popular smartphone and Apple gained market share with the Mac. Cook mentioned that the number of Apple Pay users doubled year over year.

The reports of the iPhone X's demise may have been a little premature. Apple Watch had double digits yearly growth.

Cook didn't have much to say about devices in the pipeline, but he did say that health care is of particular interest to Apple. The Tame Apple Press is whipping itself into a frenzy over Apple's latest results because the outfit managed to beat Wall Street prophercies of doom and gloom.

Apple traditionally updates its share buyback and dividend programme each spring, and the $100 billion it added this year compares with an increase of $50 billion last year.

For the current quarter, Apple expects to generate revenue of $52.5 billion, based on the midpoint of its guidance.

Apple's bottom line continues to be buoyed by iPhone sales, as it contributes about two-thirds of Apple's revenues and a major part of its profit.

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Apple doesn't break down its Other Products category, so it's hard to know how its new smart speaker is doing.

Greengart pointed to the services category's growth quarter-over-quarter, which is a tough feat to pull off considering Q2 follows the holiday quarter, where Apple typically puts in its best performance. In terms of sales, Apple sold 52.2 million iPhone during the quarter, generating a revenue of $38 billion. "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", said Luca Maestri, Apple's CFO.

Wall Street had been anxious for months that demand for the iPhone X was dropping.

That suggests Apple's flagship iPhone X didn't sell as well as it did in the earlier quarter.

AAPL closed Tuesday's trading at $169.10, up $3.84 or 2.32% on the Nasdaq.

And, although the iPhone remains the company's main driver of revenue, sales of services and other Apple products are growing.

Feeling quite confident in its continued success, Apple's board just approved a $100 billion share repurchase authorization, along with a 16% increase in its quarterly dividend.

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