Apple Music Reports Revenue Jump
Apple narrowly beat the expectations of Wall Street on Tuesday by posting over 61 billion in revenue. Reports are based on most recent quarter and earnings per share of $2.73. The mega media giant was expected to report $61 billion in revenue and $2.65 per-share in earnings. Apple said the March quarter was the best fiscal second quarter in its history. They have also said it was authorized a share buy-back plan worth $100 billion that will increase its divided by about 16 percent. Previously, Apple authorized $210 billion purchase of its own shares. That program will conclude in its third fiscal quarter. Digital music distribution platforms like Apple Music, iTunes, the App Store, and other services came in at $9.2 billion. These numbers are up from $7 billion a year ago. This 31 percent jump for services was the 12th consecutive quarter of double digital growth.
After posting a best ever quarter for services for digital music distribution with platforms like Apple Music and such, Apple says the momentum continues to be incredibly strong. Reporting record revenue from Apple Music, iTunes, and the likes – this is a powerful illustration of the importance of an active installed base of devices and customer loyalty. Apple was expected to sell about 61 million iPhones and it sold 52.2 million in the quarter. As a result, sales accounted for $38 billion of the company’s total revenue. Shares of Apple advanced 2 percent in regular trading and 5 percent more after the closing bell.
Apple Music and Other Products
Paid subscriptions to Apple’s services surpassed $270 million, up $100 million from the year prior. Digital music distribution is a huge part of Apple’s relevancy and success these days. Subscription based memberships to Apple Music are keeping the company growing to new heights. In addition, the iPad Pro and Apple Pencil are rejuvenating the market for iPads and are boasting strong sales. Most noteworthy, this continued growth and lower corporate tax rates will create 20,000 new jobs in the next five years.