Apple posts better-than-anticipated earnings fueled by iPhone sales
Apple posted better-than-anticipated second quarter earnings on Thursday, boosting hopes of a tentative tech recovery and sending company shares up.
The company reported revenue of $94.84bn in its second quarter earnings, up from a predicted $92.96bn, and an all-time record in its services division. It also reported a March quarter record for iPhone sales.
The report heartened investors, coming after Apple posted rare misses on revenue, profit and sales in its previous earnings released in February. At the time the company cited supply chain issues for the slump, after its factories in China were affected by strict Covid-19 lockdowns and related protests in late 2022.
CEO Tim Cook said in a statement accompanying Thursday’s report that the company was pleased it pulled out positive results “despite the challenging macroeconomic environment”.
Regardless of the positive performance, Apple struggled in other aspects of its business – seeing its second straight quarter of negative year-over-year growth and net income down 3% versus the same quarter last year.
Apple has long been seen as a relatively stable bet in the chaotic investing world of tech, with fewer fluctuations than peers such as Alphabet and Meta. However, in its past two earnings reports, the company has warned of a continuing economic downturn.
The solid quarter highlighted the “durability of the company’s brand”, and how consistent demand for its high-end iPhone products successfully offset other weaknesses in the business, said Jesse Cohen, senior analyst at Investing.com.
“The earnings beat suggests that Apple’s premium smartphone business may be insulated from concerns about deteriorating consumer confidence and a worsening macroeconomic outlook,” he said.
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