Apple posted a 33 per cent jump in profit last quarter, fuelled by strong demand for the iPhone and sales growth in China.

The company also boosted its capital-return programme by $70 billion. Net income in the quarter that ended in March was $13.6 billion, or $2.33 a share, and revenue rose 27 per cent to $58 billion, the Cupertino, California-based company said last night in a statement.

IPhone sales in greater China outpaced those in the US for the first time, helped by the Chinese new year celebration, Apple said. Booming demand for the larger-screened iPhone 6 and 6 Plus is putting Apple on pace for its highest annual profit since 2012 – a record – and the company also forecast sales in the current period that will exceed analysts’ estimates.

Enduring demand

That signals enduring demand for the iPhone and optimism for Apple Watch – the company’s first new gadget under chief executive Tim Cook – which reached consumers last week. Analysts on average had forecast second-quarter profit of $2.16 a share and sales of $56 billion, according to data compiled by Bloomberg.

IPhone unit sales jumped 40 per cent to 61.2 million. That topped analysts’ average prediction for 58.1 million. Total revenue from greater China surged 71 per cent to $16.8 billion.

Apple forecast the momentum will continue in the third quarter, with revenue projected to rise to $46 billion to $48 billion from $37.4 billion a year ago.

Gross margins will be 38.5 per cent to 39.5 per cent, compared with 39.4 per cent a year earlier. Analysts on average had predicted revenue would rise 26 per cent in the current period to $47 billion, with gross margin at 39.5 per cent.

The shares gained 1.8 percent to $132.65 at the close in New York. – (Bloomberg)