Apple earnings: iPhone maker weathers economic downturn better than fellow tech giants

New York
CNN Business

Apple beat Wall Street analysts’ sales and revenue expectations for the quarter ended September, despite an otherwise deadly earnings season for tech companies and concerns that demand for new iPhones may have been weaker. provided that.

The tech giant posted sales of just over $90 billion in its fourth fiscal quarter, up 8% from the same period a year earlier. Profits reached $20.7 billion, a gain of just under 1% from the year-ago quarter.

“Our record results for the September quarter continue to demonstrate our ability to execute effectively despite a challenging and volatile macroeconomic environment,” Apple Chief Financial Officer Luca Maestri said in a statement.

Apple (AAPL) shares fell just over 1% in after-hours trading Thursday after the report.

Apple product segment sales grew 9% year-over-year to nearly $71 billion, a slower growth rate from a year earlier, but not unexpected . As consumers grapple with high inflation and fears of a possible recession — and, outside the United States, an exceptionally strong dollar — it has been asked how well Apple will convince consumers. users to shell out for a device upgrade.

In a call with analysts following the report, CEO Tim Cook said the company hit a September quarter revenue record for the iPhone.

The company’s services segment, which includes paid subscriptions to products like Apple TV+ and Apple Music, reported revenue of $19.2 billion, up nearly 5% from the the previous year, marking a decline in the growth rate compared to the previous year. The services segment is seen as an increasingly important unit for the company, designed to offset slower growth in parts of its hardware business. Apple now has more than 900 million paid subscriptions across its services, up 155 million from a year ago, Maestri said.

Earlier this week, Apple raised prices for its music and TV streaming services, which could help boost sales going forward.

“Like other big tech companies, even Apple is suffering from the negative impact of a deteriorating macroeconomic backdrop and ongoing supply chain issues, although it has been more successful in navigating this difficult environment” , said Jesse Cohen, analyst at statement.

Apple declined to provide a revenue forecast for the all-important holiday quarter. However, Maestri said he expects year-over-year revenue growth to slow in the December quarter compared to the September quarter, citing US dollar strength and macroeconomic weakness. persistent.

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