Apple’s first-quarter sales rose by 3.9% in the first quarter to a record $124.3bn, just a touch above consensus forecasts. Most of the growth was delivered by an improvement in service revenue, while iPhone sales dipped 0.8% to $69.1bn. On a regional basis, all areas were in positive territory except China where sales dropped 11.1% to $18.5bn.
The shift in revenue mix towards higher-margin services helped operating profit to rise 6.1% to $42.8bn.
Free cash flow fell from $37.5bn to $27.0bn reflecting the adverse timing of certain receipts and payments. Net debt stood at $43.0bn.
Apple declared a dividend of $0.25 per share, while spending on share buybacks in the quarter rose from $20.1bn to $23.6bn.
In the second quarter, revenue is expected to grow in the low to mid-single digits despite a 2.5 percentage point headwind from currency movements.
The shares rose 3% in after-hours trading in early trading.
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