Although Apple sold slightly fewer iPhones than expected - and at a lower price - during the quarter, Cook said he's optimistic there's room to run in the smartphone market worldwide.
San Francisco - Apple lavished cash on its shareholders like no company in history in the first three months of 2018 and it intends to keep doing so, making the iPhone maker's investors the clearest winners yet from 2017's sweeping USA corporate tax cuts.
Cook is under no illusion that the iPhone X didn't sell as well as Apple's own initial expectations, however he did reveal during the earnings call that customers chose the iPhone X over other models "each and every week" during the quarter. Digital content, AppleCare, Apple Pay, licensing and other services saw 31 percent growth, bringing in $9.2 billion in revenue for the company.
"We'd rather have companies invest within themselves and grow the business", Bruce McCain, chief investment strategist at Key Private Bank, said last week. It is worth adding that Barclays previous year predicted Apple to continue bundling headphone jack to lightning connector adapter with the iPhone 8 and iPhone 8 Plus.
"We also grew revenue in all of our geographic segments, with over 20 per cent growth in Greater China and Japan", he informed.
Despite that, Apple said it sold 52.2 million iPhones during the quarter, representing an increase of 3% from a similar period in 2017.
Investors support Apple's effort to look beyond its signature product, the iPhone, for growth.
For the full fiscal year, which ends September 29, Apple is now seen selling 20.3 million smartwatches.
Apple's wearables, which include AirPod earbuds and the Apple Watch, also grew strongly, according to CEO Cook, citing a 50% growth rate over a year ago and comparing the business to a "Fortune 300" company.
Apple's price of shares dropped precipitously in anticipation that the company would confirm that fear, a confirmation that never came, according to the Chicago Tribune.
Overall, iPhone revenues rose 14%, to $38.03 billion.
The company is the world's second largest smartphone manufacturer behind Samsung and with a clear lead over third-placed Huawei.
"India, we set a new first-half record".
Other analysts agreed. "Even if smartphone replacement cycles continue to lengthen, we see Apple delivering 4% revenue and 16% (earnings per share) growth over the next three years with services the primary growth engine", Morgan Stanley's Huberty wrote.
"The guidance for the third quarter alleviates investor concerns on iPhone shipments", said Shannon Cross of Cross Research.
Apple announced its second-quarter earnings of fiscal 2018 late Tuesday, edging above consensus analysts' estimates.
"I don't buy the view that market's saturated", he said. Revenue stood at $61.14 billion finishing in-line with the $61.15 billion prediction that analysts had made.
Apple has been seen as vulnerable to in the wake of intensifying rhetoric and threats between Washington and Beijing that have raised worries of a trade war.