Connect to share and comment

Apple profit falls for first time in nearly a decade

PlacardEnlarge
(Globalpost/GlobalPost)

Apple on Tuesday reported that its quarterly profit had dipped for the first time in nearly a decade despite a rise in revenue from the same period a year earlier.

Apple posted a profit of $9.5 billion on revenue of $43.6 billion in the first three months of this year, compared to a profit of $11.6 billion on $39.2 billion in the same quarter in 2012.

"We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad," said Apple chief executive Tim Cook.

Apple also announced that its board of directors has endorsed a plan to more than double to $100 billion the amount of its stock it will buy back in the coming three years.

The board also approved a move to raise a coming stock dividend by 15 percent to $3.05 per common share as the company worked to restore shareholder confidence.

"We are very fortunate to be in a position to more than double the size of the capital return program we announced last year," Cook said.

"We believe so strongly that repurchasing our shares represents an attractive use of our capital that we have dedicated the vast majority of the increase in our capital return program to share repurchases."

Apple shares jumped 5.5 percent to $428.30 after the results were released.

gc/jk

http://www.globalpost.com/dispatch/news/afp/130423/apple-profit-falls-first-time-nearly-decade