Apple earnings beat forecasts thanks to iPhone sales and services revenue

Last Update: May 05, 2023, 03:11 AM IST

Apple CEO Tim Cook is on his India visit for Apple Store launch in Mumbai and Delhi.

The Silicon Valley titan posted a profit of $24 billion on revenue of $94.8 billion in the first three months of this year

Apple said on Thursday that money made from iPhone sales and services boosted quarterly earnings, which beat forecasts despite inflationary pressures and a slowing global economy.

The Silicon Valley titan reported a profit of $24 billion on revenue of $94.8 billion in the first three months of this year.

“Despite a challenging macroeconomic environment, we are pleased to report all-time records in services and records for the March quarter for iPhone,” Apple CEO Tim Cook said in an earnings release.

iPhone sales soared to $51.3 billion in the quarter, the highest in the same period a year earlier, according to earnings data.

Analysts said this was at least partly due to China’s reopening after prolonged Covid restrictions had hurt economic activity.

Although Apple has made noise with its expansion into India, China remains an important supplier and key market for the iPhone maker.

Apple was deeply affected by years of Chinese Covid-related closures and is only now seeing its complex supply chain return to normal.

Total revenue for the period declined, although this was expected and Apple shares rose about one percent in after-market trading.

Mac sales fell to about $7.2 billion as worldwide belt-tightening affected the entire personal computer market.

Research firms IDC and Canalys reported that shipments of Apple Mac computers, which are in the premium segment of the market, shrank more than 40 percent in the quarter.

Even though iPhones have been the heart of Apple’s money-making machine, the company has prioritized bringing in more revenue from the content and services sold to users of its devices.

Apple said revenue from services was $20.91 billion, defying expectations that demand for streaming entertainment would fall with the end of life restricted by the Covid pandemic.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)