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Apple Ends 13 Years of Continuous Quarterly Growth

by Everett Rosenfeld, CNBC /
Logo of U.S. technology company Apple is seen in Zurich
The logo of U.S. technology company Apple is seen in Zurich, Switzerland April 5, 2016. REUTERS/Arnd Wiegmann

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Apple reported quarterly earnings and revenue that missed analysts' expectations on Tuesday.

The tech giant said it saw fiscal second-quarter earnings of $1.90 per share on $50.56 billion in revenue. Wall Street expected Apple to report earnings of about $2 a share on $51.97 billion in revenue, according to a consensus estimate from Thomson Reuters.

That revenue figure was a roughly 13 percent change against the comparable year-ago period — representing the first year-over-year quarterly sales drop since 2003.

Importantly, the company announced a 10 percent dividend increase and a $50 billion increase to its capital return program. Under that new plan, Apple expects to spend a total of $250 billion of cash by the end of March 2018, it said.

Read More: As iPhone Sales Fade, Apple Prepares to Report Worst Earnings in a Decade

Shares in the company fell more than 6 percent in after-hours trading.

Speaking with CNBC, Apple CEO Tim Cook said the company is in "the early innings of the iPhone" and that they "feel good" about their business in China.

In fact, Apple beat Wall Street's estimates on iPhone shipments, reporting 51.2 million for the quarter. Analysts had expected 50.3 million, according to StreetAccount.

Still, that iPhone unit count was a 16 percent decline from the 61.17 million shipped during the same period last year.

Looking ahead to the fiscal third quarter, Apple said it expects revenue between $41 billion and $43 billion — Wall Street had expected $47.42 billion on average, according to StreetAccount.

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