Apple’s iPhones propelled the company to its second best overall revenue quarter ever.
The Cupertino company sold 61 million iPhones in the March quarter, an increase of about 40% from the same quarter a year earlier, fueled by the success of the larger-screened iPhone 6 and 6 Plus devices introduced last September. Another boon to Apple: China, where sales grew 72% and outpaced the U.S.
Apple posted earnings of $2.33 per share on revenue of $58 billion, up from earnings of $1.66 per share (on a split-adjusted basis) on revenue of $45.6 billion a year earlier.
The company also has $193.5 billion in cash, up from around $150 billion in the year ago quarter. The vast majority of that is being held in offshore accounts, not subject to U.S. taxes.
While iPhone sales and overall revenue were strong, other product categories are more uncertain.
Sales of the iPad, already flatlining, fell to 12.6 million in the most recent quarter from more than 16 million in the same quarter a year earlier, suggesting a slower upgrade cycle and the possibility that the larger iPhones are cannibalizing the need for the tablets.
As expected, Apple did not break out hard numbers for the Apple Watch, the new line of easily scratched smartwatches that went on sale in stores on Friday.
Apple CEO Tim Cook said on the call that demand for the watch has outpaced supply, but the company has “made progress over the last week or so” to improve that.
One complication Cook hinted at: figuring out customer preference for certain “configurations,” presumably referring to stocking up enough on specific watch band choices.
“It is a new product for us and with any kind of new product you end up taking some time to fully ramp,” Cook said on the call. “Having said that, I think we are in a good position and by some time in late June we currently anticipate being in a position that we could begin to sell the Apple Watch in additional countries.”
Apple stock ticked up by as much as 2% in after hours trading thanks in part to the fact that the company beat estimates for its earnings and an announcement that the company is boosting its program to buy back sharesby another $50 billion, which makes it a $200 billion program.
The stock has been trading near all-time highs in recent weeks, giving the company a market cap north of three quarters of a trillion dollars.