Apple is buoyed by better-than-expected quarterly iPhone sales

Apple on Thursday posted better-than-expected results for the April-June period, with sales of its flagship iPhone still strong. The computer giant’s net profit fell 10.5% to $19.4 billion. But the latter came in above analysts’ expectations, as did the turnover (83 billion). Apple shares rose more than 3% in electronic trading on Wall Street.

Mac sales are down

Apple sold $40.7 billion worth of smartphones in the third quarter of its trailing fiscal year (April to June), slightly more than last year. Given the economic slowdown, some analysts fear that demand for this expensive device will weaken. Apple’s services business, which includes the App Store and iCloud in particular, also maintained solid growth (12%).

On the other hand, sales of Mac computers fell by 10%, as did iPad tablets (-2%) and connected objects and apparel (-8%). Revenue growth is decelerating compared to previous quarters, however, the lowest since the quarter ended September 2020. The group warned in April of disruptions due to a resurgence of coronavirus cases in China and shortages of silicone needed for production. Chips will lose $4 to $8 billion in turnover.

Results this quarter “Continue to demonstrate our ability to effectively manage our business despite a challenging operating environment”, finance director Luca Maestri responded in a press release. Geographically, Apple saw revenue growth in North America and Europe, but declines in Greater China (which includes Hong Kong and Taiwan) and Japan.