Apple records strong earnings though tech companies struggle ‎with inflation

Apple Inc. reported on Thursday revenue and profit that beat Wall Street expectations, in one of the few bright spots in the tech sector hurt by inflation-driven spending cuts.

According to “Reuters”, Apple saved its oldest technology product, laptops, while its flagship “iPhone” stumbled.

Although the iPhone sales weren’t as strong as some analysts had been expecting, it set a record for the quarter ending in September. Mac laptop sales of $11.5 billion came in well above analyst estimates of $9.36 billion.

The company’s shares initially declined in trading after the close, before recovering

Apple’s results showed some resilience in the face of a weak economy and a strong dollar, which have caused disastrous reports from many technology companies.

Overall, Apple said quarterly revenue rose 8% to $90.1 billion, exceeding expectations of $88.9 billion, and net profit of $1.29 per share, exceeding analysts’ average forecast of $1.27 per share, according to Refinitiv data.

“Our performance was better than we expected, although the foreign exchange had a significant negative impact for us,” said Chief Financial Officer Luca Maestri.

Minutes before Apple’s announcement, Amazon.com exacerbated the misery of the technology sector, as it expected a decline in holiday profits, which led to a 14% drop in its shares.

Apple’s iPhone sales for the company’s fourth fiscal quarter rose to $42.6 billion, while Wall Street had expected sales of $43.21 billion, according to Refinitiv IBES data.

By contrast, the overall global smartphone market fell 9% for the just ended quarter, its third consecutive decline this year, according to Canalys data.

The company reported that iPad sales were $7.2 billion, compared to an average estimate of $7.94 billion.

Growth in the company’s services sector, which has boosted sales and profits in recent years, saw revenue rise to $19.2 billion, less than expectations of $20.10 billion.

In China, which has experienced a sharp economic slowdown, Apple reported fourth-quarter sales of $15.5 billion. This represents a gain compared to the previous quarter, when the company recorded sales of $14.6 billion.