Apple Watch going well, time will tell

Apple Inc. CEO Tim Cook said the launch of the company's new watch has been "overwhelmingly positive"just as another seemingly unstoppable surge of iPhone and App Store sales helped Apple Inc. post a 33% increase in profit for the second quarter, setting a record for its best March quarter ever.

Net income at Apple totaled $13.57 billion in its fiscal second quarter ended March 28, versus $10.22 billion in the year-ago period. Incredibly, the company is selling more products while also raising prices.Apple said it sold 61.17 million iPhones in the three months ended March, up 40% from the year-earlier period. The newest iPhone 6 costs $100 more than the previous generation.

"We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," Apple CEO Tim Cook said. "We're seeing a higher rate of people switching to iPhone than we've experienced in previous cycles, and we're off to an exciting start to the June quarter with the launch of Apple Watch," he added.

Cook told CNBC that he is "very confident" in the company's iPad sales (which have been lagging), and that he is also happy with the Apple Watch.

The company also announced Monday that it would expand its capital return program to $200 billion from a previously announced $130 billion. Apple boosted its dividend 11% to 52 cents per share. The tech giant said its cash reserves had risen to a record $194 billion. Last quarter that figure came in at $178 billion, according to the company.

Earnings per share rose more sharply, to $2.33, from a split-adjusted $1.66, because the company’s stock-repurchase program reduced the share count. Revenue rose 27% to $58.01 billion from $45.65 billion in the year-ago period.

For the third quarter Apple is forecasting $47 billion in revenue, which would represent 26% year-over-year growth.