Apple posts strong profits and revenues on higher Iphone sales

Apple announced that it had recorded sales and profits that were higher than Wall Street estimates, as it dealt with a shortage of components required 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.

It reported sales and earnings for the quarter ended June 25 at $83 billion, or $1.20 per share, exceeding expectations of $82.8 billion and $1.16 per share, according to Refinitiv data.

While iPhone and iPad sales beat expectations, revenue from services, Mac laptops and accessories fell short of Wall Street’s target, and sales in the core Chinese market fell 1%.

The company said that iPhone sales amounted to $40.7 billion in the last quarter, up 3% year-on-year and far outstripping the global smartphone market as a whole, which fell 9% over the past quarter, according to Canalys data.

The growth in the company’s services sector, which has supported its sales and profits in the past few years, was 12% lower than last year’s average, which recorded 33% or revenues of $19.6 billion, but it is 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 revenues to fall by between 4 billion and 8 billion dollars due to disruptions in supply chains, although it did not announce a total number of returns it expected to deduct this from it.

Meanwhile, iPad sales came in at $7.2 billion, compared to estimates of $6.9 billion, while Mac sales were at $7.4 billion, versus estimates of $8.7 billion, a contraction of 10% and after record sales in 2020.