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Apple - shares rise as iPhone sales return to growth

George Salmon | 2 August 2017 | A A A
Apple - shares rise as iPhone sales return to growth

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Apple shares were 5.8% up in US pre-market trading, following the release of third quarter results.

Revenue of $45.4bn was 7% higher than last year, with earnings per share rising 18% to $1.67.

Services, which includes iTunes and the App store, was again the fastest growing of Apple's main divisions, with revenues rising 22% to $7.3bn. However at $24.8bn, iPhone remains the largest contributor to total revenues. After a 23% decline this time last year, the group's flagship division has returned to growth, with revenues up 3% year-on-year.

The group's other divisions all saw revenues rise too. iPad sales rose 2% to $5bn, with Mac sales up 7% to $5.6bn. Revenue from other products, including Apple TV and Watch, rose 23% to $2.7bn. The quarter also saw Apple return $11.7bn to shareholders, taking the cumulative capital returns under the shareholder returns program to almost $223bn. The next quarterly dividend of $0.63 per share is due to be paid on 17 August.

The group's guidance for the fourth quarter is for revenue between $49bn and $52bn, implying growth of between 4.4% and 10.8% on Q4 2016 Gross margins are set to remain steady at 37.5% to 38%.

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