Apple earnings beat Wall Street expectations, but some of the tech giant’s customers remain worried about a possible shortage of iPhones and other products.
Apple reported an 11.2 per cent rise in net profit to $US1.24 billion, compared with Wall Street’s consensus estimate of $US900 million.
It said it would also report quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) of $A1.2 billion ($A1 billion), beating Wall Street estimates of $AU1.15 billion ($AU1 billion).
The company also forecast that it would post a net profit of $1.04 billion, or $US3.11 per share, in fiscal 2019, compared to Wall Street consensus estimates of a $US600 million loss.
Apple Chief Executive Tim Cook, who has been leading the company through its financial struggles, said Apple had been “doing really well” and had “been really, really, very, really healthy”.
“I think we’re doing pretty well,” he said.
“We’ve had some good, tough times, we’ve had bad times, but we’ve been doing really well.”‘
There’s nothing that’s going to stop us’The news comes a day after Apple announced a plan to raise its dividend by 20 per cent in 2019.
The company’s stock was down 3 per cent at $US4.79 on Tuesday.
Apple has been under pressure to address concerns about its business and supply chains after a string of suicides in its supply chain and a string in which a worker was killed by a disgruntled worker.
Apple’s profit rose to $A2.4 billion ($US2.1 billion) in fiscal 2016, its best year ever, as it raised its dividend to 15 cents from 15 cents.
It said it planned to pay out dividends on a quarterly basis until 2027, with the annual dividend being adjusted annually.
“We’re doing really, well.
We’re doing well in a very tough market,” Cook said.
He said Apple was still a long way from achieving the kind of growth that would give it the cash flow needed to grow and make profit.
“There’s not going to be a period where we can just go out and buy the next big thing,” Cook added.
Apple had previously forecast a revenue decline of about 50 per cent this year.