APPLE delivered stronger-than-expected results yesterday for the past quarter as gains in services helped offset slumping iPhone sales, sparking a rally in shares of the technology giant.

California-based Apple reported a 16% drop in profits in the just-ended quarter to US$11.6 billion (RM48 billion), as overall revenues dipped 5% to US$58 billion.

Apple shares rallied 5% in after-hours trade, with the results showing better-than-anticipated results from its new products and services in the fiscal second quarter to March 30.

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for services, and the strong momentum of our wearables, home and accessories category, which set a new March quarter record,” said chief executive Tim Cook.

“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services.”

Apple has been scrambling to develop new revenue streams amid stagnant growth and increased competition in the smartphone market, which has been the company’s main profit driver.

The latest quarterly results showed revenue from iPhone sales slumped 17% to US$31 billion. Apple has stopped reporting iPhone unit sales.

But services revenue grew 16% to US$11 billion, reflecting growth in music, Apple Pay and other new offerings from the firm.

Apple also saw growth in its wearables – which include its Apple Watch and earbuds – and its smart HomePod speaker.

The company also said it would spend an additional US$75 billion for share repurchases and boost its dividend, delivering more cash to its investors. It ended the quarter with some US$225 billion in cash. – AFP, May 1, 2019.