Apple’s (AAPL -2.97%) huge cash position fell 7.4% year-over-year in its fiscal second quarter, but that isn’t stopping the iPhone maker from buying back shares and raising its dividend.
In conjunction with Apple’s second-quarter earnings report, the iPhone maker said it has cash on hand of $192.8 billion, compared to the $207.06 billion as of the end of its fiscal first quarter. That was before the COVID-19 pandemic struck, hurting the supply chain and forcing Apple to close all its stores outside of China. At the same time, the tech stock has continued to churn out new products, launching a new iPad and a low-cost iPhone during its second quarter. It generated operating cash flow of $13.3 billion in the second quarter, up $2.2 billion year-over-year.
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“We are confident in our future and continue to make significant investments in all areas of our business to enrich our customers’ lives and support our long-term plans — including our five-year commitment to contribute $350 billion to the United States economy,” Apple CFO Luca Maestri said in an earnings press release. Apple noted the board authorized an increase of $50 billion to the existing share repurchase program and declared a cash dividend of $0.82 a share, increasing it by 6%.
For its second quarter, Apple reported revenue of $58.3 billion, which was up 1% compared to last year’s first quarter. Earnings came in at $2.55 a share, up 4%. Driving the growth was international sales, which accounted for 62% of the company’s revenue during the quarter. iPhone sales were down 7% but Apple was able to offset that with a 16% increase in services revenue.
