Oct. 27 (Reuters) – Apple (AAPL.O) reported on Thursday that sales and profits beat Wall Street targets.
Forecasts for the holiday quarter were tougher. Apple didn’t provide specific numbers, but said he saw sales growth fall below his 8% in the December quarter, but not as much as Amazon.com AMZN.O.
Apple stock fell temporarily in after-hours trading, but recovered to positive territory.
The Cupertino, Calif.-based tech giant was saved by its oldest technology, the laptop computer, but its star, the iPhone, stumbled.
iPhone sales weren’t as strong as some analysts had hoped, but they were still a record for the September quarter. Mac’s $11.5 billion in sales far exceeded analyst estimates of his $9.36 billion.
Apple’s results have shown some resilience in the face of a bearish economy and a strong US dollar that have led to dismal reports from many tech companies. Like Facebook’s parent companies Meta (META.O) and Snap (SNAP.N), Apple’s ad spending is soft. Overall, Apple posted quarterly revenue growth of 8% to $90.1 billion, beating estimates of $88.9 billion, and net income of $1.29 per share, compared with 1.27 per share, according to Refinitiv data. It beat the average analyst estimate of the dollar.
Chief Financial Officer Luca Maestri said, “Despite foreign exchange being a big drag on our company, we performed better than expected.”
A rising US dollar has hit many companies, including Apple. These companies make a lot of money overseas and get less cashback when they convert. For consumers, the price of new devices purchased outside the United States will increase.
Apple’s iPhone sales rose to $42.6 billion in the fourth quarter of the fiscal year, according to Refinitiv IBES, while Wall Street expected sales of $43.21 billion.
Maestri said iPhone sales set a record for the September quarter, improving 10 percent over the same period last year and beating the company’s forecast.
“The iPhone numbers suggest market turmoil and uncertainty, but Apple has a variety of ways to offset that,” said Lunar Bjoorhovde, research analyst at market research firm Canalys. .
Sales of Apple’s Mac computers were boosted by the introduction of redesigned MacBook Air and MacBook Pro laptops this summer. A new tablet was launched this week.
Apple said its gross margin of 43.3% was a record for the September quarter.
Maestri said strong computer sales also reflected an order backlog caused by the lengthy shutdown of one of the factories that makes Macs.
The company said iPad sales were $7.2 billion, with an average estimate of $7.94 billion.
Apple wearables such as AirPods and other accessories generated $9.7 billion in sales, slightly above Wall Street’s $9.2 billion estimate.
“They said they had no issues with supply, so that seems to be a thing of the past,” said Carolina Milanesi, consumer analyst at Creative Strategies.
Revenue increased to $19.2 billion, below estimates of $20.1 billion, due to growth in the company’s services business, which has boosted sales and profits in recent years.
Maestri said Apple has experienced weakness in the digital advertising and gaming space, as have other companies in the space.
Investing.com senior analyst Jesse Cohen said, “Like other big tech companies, even Apple is suffering from the negative effects of a deteriorating macro environment and ongoing supply chain woes, but a difficult “We have navigated the environment well,” he said. .
In China, which experienced a sharp economic slowdown, Apple reported fourth-quarter sales of $15.5 billion. That’s a gain from last quarter when Apple posted his $14.6 billion in sales.
The service now has 900 million paying subscribers, up from 860 million last quarter, according to Apple.
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Reported by Dawn Chmielewski of Los Angeles and Nivedita Balu of Bangalore.Edited by Peter Henderson and Lisa Shoemaker
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