Dubai, United Arab Emirates (CNN)–Apple reported $97.3 billion in sales in the second fiscal quarter, up 9% from a year earlier. The company topped Wall Street estimates in its latest quarter, and reported one of the strongest three-month periods in its history on Thursday, thanks to record revenue from its services business and strong iPhone sales.
Apple’s iPhone sales grew 5% to $50.6 billion during the quarter, compared to last year’s $47.9 billion. Services business revenue increased 17% year-over-year to nearly $20 billion in the first quarter.
Mac revenue rose to $10 billion, despite supply constraints, thanks in large part to consumer interest in the new M1 internal chip.
The company has seen growth in almost every product category except for the iPad, which continues to experience supply chain issues.
Apple shares initially rose in following-hours trading following the earnings results, before dropping more than 4%. Apple’s board also authorized a $90 billion increase in its stock buyback program.
CEO Tim Cook kicked off the win-win call by acknowledging the company’s efforts in Ukraine, such as donating products to support refugees arriving in America, and spoke to the current “unexpected” state of the pandemic as the company began welcoming employees back into offices. “These times remind us that we never know what the future may hold,” he said.
He also noted the increasing restrictions in China following an increase in coronavirus cases, but said many of the affected product assembly plants have since restarted.
This will impact the next quarter by $4 to $8 billion, he said, along with an industry-wide silicon shortage. The company is also monitoring how inflation will affect customer spending in the coming months.
Here, in the infographic above, Apple’s product revenue in the second quarter compared to last year.