Apple Inc. (NASDAQ:AAPL) released its first quarter 2017 earnings after the market closed on Tuesday, which included the all-important holiday season. Results did not disappoint.
It posted revenue of $78.4 billion, which was an increase of 3.3% versus the prior year and a full $1 billion above analyst estimates. Earnings also beat expectations, coming in at $3.36 per share versus estimates of $3.22 per share. And the company continued to give back to shareholders, spending $15 billion in the quarter on both share repurchases and dividends.
iPhone sales continued to be strong. Apple sold 78.3 million iPhones in the quarter, a 5% increase year-over-year. Mac unit sales only increased marginally, but higher prices boosted the division’s revenue 7%. Services revenue increased 18%. The only poor showing was from the iPad division, which saw overall unit sales fall 19% and revenue decrease 22%.
Sales were strong in Japan (up 20%) and in the Americas (up 9%). This was offset by somewhat tepid numbers in Europe (up only 3%) and weak numbers from Greater China, where sales declined by 12%.
Apple also issued somewhat weak guidance for its second quarter, with revenue projections between $51.5 and $53.5 billion. Analysts expected the top line to be closer to $54 billion.
Investors were quite happy with the results. Apple shares surged higher in Wednesday’s trading, increasing by nearly 7% to $129.41 each. That’s good enough for a new 52-week high.
