Apple weathers tech industry storm to top profit and revenue targets

Apple weathers tech industry storm to top profit and revenue targets
Apple weathers tech industry storm to top profit and revenue targets

Apple’s quarterly results on Thursday showed the company weathered the ongoing tech downturn better than its competitors, reporting earnings and earnings above Wall Street targets.

Refinitiv research showed revenue rose 8% to $90.1 billion in the quarter, beating expectations of $88.9 billion, and net income was $1.29 per share, below median estimates. analysts, exceeding 1.27 dollars.

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Apple’s performance has shown some resilience in the face of a weak economy and a strong dollar, leading to dismal reports from many tech companies. His room was saved by the oldest technology: the desktop computer.

The company reported iPad sales of $7.2 billion, compared to a median estimate of $7.94 billion.

According to Refinitiv data, the company’s phone sales in the fourth quarter rose to $42.6 billion, compared with a Wall Street forecast of $43.21 billion. In contrast, data from Canalys shows that the overall global smartphone market fell 9% in the quarter just ended, marking its third consecutive drop this year.

The results come after a debacle by other tech companies, including Meta, which lost $80 billion in value overnight after reporting disappointing quarterly results on Wednesday. Minutes before Apple’s announcement, Amazon added to the tech sector’s misery by predicting a drop in its holiday profits and sending its stock price down 20%. Apple’s bailout resulted in Mac sales of $11.5 billion, well above analyst estimates of $9.36 billion. The company’s chief financial officer, Luca Maestri, said iPhone sales set a record for the September quarter, beating the company’s expectations.

“Even though the exchange rate was a big disadvantage for us, we did better than expected,” said Maestri.

Apple’s Mac sales soared this summer with the launch of the redesigned MacBook Air and MacBook Pro laptops. The new tablet was released this week.

Apple’s wearable devices like AirPods and other accessories hit $9.7 billion in sales, slightly above Wall Street’s forecast of $9.2 billion.

Ahead of the results, Barclays hardware analyst Tim Long said: “As with the iPhone, we expect the macroeconomic impact on the device to reach higher levels at some point.

In a call with investors Thursday, Chief Executive Tim Cook said chip shortages were no longer a factor in the company’s past struggles this quarter. He said he was looking to meet consumer demand, adding that two-thirds of customers who bought an Apple Watch during the quarter were using the product for the first time.

Revenue rose to $19.2 billion, below the forecast of $20.1 billion, driven by growth in the company’s services business, which has boosted revenue and profit in recent years.

Like many technology companies, Apple cut hiring last year, but this was affected by inflation, Cook said.

“Obviously there is salary inflation and we want to take care of our team and give them the best benefits and compensation to empower them to do the best work of their lives. I’m focused,” he said.

Apple declined to provide earnings guidance, citing “constant uncertainty around the world,” but said the company expects year-over-year revenue growth to slow.

“We are still living in unprecedented times,” Cook said. “The world is still unpredictable.”

Reuters contributed to this report

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