iPhone Sale Jumps by 40%, but iPad Sale Falls

Apple Inc. has achieved something rare by simultaneously commanding high prices and gaining market value.

Recently, the company announced that it sold 61.2 million large-display iPhones during the three months that ended on March 28. This happens to be 40% more than the corresponding period in the previous year. Most of the iPhones were sold in emerging markets, and 72% more iPhones were sold in China.

In the last quarter, the iPhone’s average selling price was $659, $60 more than the corresponding period last year.

Apple Inc. says that its latest phones are attracting more customers than ever. Tim Cook, the chief executive officer for Apple, told The Wall Street Journal that the company is “seeing a higher rate of switchers than previous iPhone cycles.”

Ever since Apple launched its new phones, its revenue has jumped by over $29 billion, while compared to the corresponding period last year. This is what Nike Inc’s annual revenue was last year.

Apple’s dividend has boosted by 11% on Monday and its share-repurchase program has increased to $140 billion. The company has vowed to make its shareholders richer by $200 billion via dividends and buybacks by March 2017.

In spite of its aggressive policies of paying dividends and repurchasing shares, the company continues to grow. It was worth $193.5 billion by March end, around $178 more than what it was at December end.

In 2012, Apple launched its capital-return program, and ever since, it has returned its shareholders $112 billion. Simultaneously, its cash pile grew by $76 billion. According to the latest update from the company, it has plans to return $88 billion more to its shareholders during the following two years.

China is a major contributor to the revenue growth at Apple. China has overtaken Europe to become the second largest region for Apple iPhones. Cook said:

There are more people moving to the middle class in China than I’ve ever seen before or could ever imagine. The size of the market and the live of the smartphone, in particular the iPhone, is incredible.

The company said that its revenue growth has been reduced by the stronger dollar by 6%. Apple is also a bit worried about the 23% fall in the sale of iPads. The Apple Watch, a product recently launched by Apple, began shipping on Friday with limited availability, but the company doesn’t expect this new product to have a major impact on its earnings.