Apple announced Thursday that it recorded sales and profits that exceeded Wall Street estimates, as it dealt with a shortage of components needed for manufacturing better than expected and benefited from an unwavering demand from consumers to buy new iPhones despite inflation that forced them to cut spending.
The share price increased by 3.2 percent in following-market trading, following the announcement of the financial results.
Apple said sales and profits for the quarter ended June 25 were $83 billion, or $1.20 per share, exceeding expectations of $82.8 billion and $1.16 per share, according to Refinitiv data.
While sales of the “iPhone” and “iPad” beat expectations, revenue from services, “Mac” laptops and accessories fell short of the target on Wall Street, and sales in the main Chinese market fell by one percent.
The company said iPhone sales reached $40.7 billion last quarter, up 3 percent year on year and far outpacing the global smartphone market as a whole, which fell 9 percent last quarter, according to Canalys data.
Growth in the company’s services sector, which has bolstered its sales and profits in the past few years, was 12% lower than last year’s rate of 33% and shared revenues of $19.6 billion, less than expectations of $19.7 billion.
Apple said it now has 860 million subscribers for its paid services and software, up from 825 million in the previous quarter.
The company told investors to expect revenue to fall by between $4 billion and $8 billion due to supply chain disruptions, although it did not give a total figure for revenue it expected to subtract from it.
iPad sales came in at $7.2 billion, compared to an estimate of $6.9 billion. Mac sales came in at $7.4 billion, compared to an estimate of $8.7 billion, a contraction of 10 percent and following record sales in 2020.
