A year after sales growth, Apple showed that it has a more resilient business than many of its tech peers, even though it froze in the first three months of the year.
The company reported on Thursday that profits rose 6 percent to $ 25 billion In its second fiscal quarter, double-digit growth slowed in each of the previous five quarters., Sales rose 9 percent to $ 97.29 billion, exceeding analysts’ expectations, as purchases slowed more than a year earlier due to the epidemic of iPads and Macs.
Apple’s chief executive Tim Cook has warned investors about the coming months, telling Wall Street analysts that the rise of Kovid in China will reduce demand and reduce production of iPhones, iPads and Macs. He said sales are expected to decline by $ 4 billion to 8 8 billion in the current quarter due to supply-chain difficulties.
Mr Cook said “almost all” of Apple’s factories in the Shanghai region have resumed production.
Shares of the company fell nearly 4 percent in after-hours trading, dropping most of Apple’s profits early in the day.
This The results are compounded by a week of uneven financial reports from leading technology companies struggling to sustain last year’s explosive growth. Google’s parent company Alphabet and Facebook’s parent Meta saw a decline in profits a year ago, while Microsoft saw a rise in profits.
The epidemic has been a double-edged sword for Apple. Analysts said demand for remote school and work computing equipment has picked up, and government stimulus investigations and cutbacks to travel and leisure spending have shocked the company’s all-important iPhone business, analysts said. But those same forces planted supply-chain problems, exacerbating global chip shortages that cost Apple billions of dollars in missed sales.
In addition to highlighting the challenges that Apple faces in China, Apple said its decision to suspend sales of products in Russia due to its invasion of Ukraine would reduce total revenue in the current quarter. Apple counts on Russia for 1 percent of its sales and a slightly larger percentage of its profits, analysts estimate.
During the January-March quarter, sales of iPhones, iPads and other devices rose 6.6 percent to $ 77.5 billion, Apple said.
The biggest problem for Apple could come in the coming months as the economic strain of the Ukraine war spreads across Europe, said Jean Munster, Apple’s longtime analyst and managing partner at venture-capital firm Loop Ventures. “People are on edge,” he said. “They are paying more for fuel. If you live in Germany, does that affect your decision to buy the next iPhone?”
To diversify the sales of the device, Mr. Cook has led a growing range of software and services in Apple products around the world. Last year, homeless people divorced on apps, video games and subscriptions like HBO Max. But between work and school, Apple said sales growth in its so-called services business slowed to .8 19.82 billion. Revenue during the quarter,
The company said it would increase its cash dividend to shareholders by 5 percent and repurchase its shares by 90 billion.