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Apple Shares Surge on Unexpectedly Good iPhone Sales

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Apple's share price jumped by more than 7 percent as the company announced better than expected financial results and plans to return more cash to shareholders.

The Company posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion. International sales accounted for 66 percent of the quarter's revenue.

The company said that it will spend an additional USD30 billion buying back its own shares, which normally reduces liquidity in the stock market, but will also split is shares, which increases liquidity substantially.

The company will split shares so that each share held today is translated into seven shares in the future. That lowers the cost of each individual share, and makes it easier for investors to buy smaller holdings in the company.

Apple also raised its dividend payment to shareholders by 8 percent.

Sales of Apple's iPhone handset exceeded expectations. Sales of the smartphone came in at 43.7 million units for the three months to the end of March, exceeding the 38 million that had been predicted.

Sales were said to be up across the world, but particularly so in Japan and China.

"We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said chief executive Tim Cook in a statement.

He also hinted at new products that "only Apple could bring to market", which may reassure investors worried that the company has not delivered a block-buster product to the market for several years.

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Tags: apple  USA